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China Company Rigistration

Starting a new company is a really big deal both emotionally and financially. Interloop Solutions & Consultancy can make it simple. Formation, EIN, legal documents. We handle everything.

Types of Different Companies

Since 1995, foreign investment in China has been regulated by the Catalogue of Industries for Guiding Foreign Investment (Catalogue). The Catalogue is updated approximately every three years to reflect the government’s then prevailing economic and political goals and policies, and to adjust the directions of foreign investment according to the necessity of economic development of China.

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Encouraged

This category includes 348 industries, such as fruit and vegetable drink production.

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Restricted

Investment in restricted sectors is subject to various limitations. Restricted sectors include 35 industries such as bank and insurance companies.

Prohibited

Certain businesses are not open to foreign investment. Prohibited sectors include 28 industries, such as air traffic control.

Permitted

Investments that do not fall into any of the three categories above are generally permitted.

Company Incorporation in China

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Wholly Foreign Owned Enterprise
When targeting direct control over payments/invoicing operations in China, the type of structure required is a Wholly Foreign Owned Enterprise (WFOE, sometimes also referred to as WOFE).
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Sales Office
When a foreign company wants to maximize control of its staff via its own HR, legal, and administrative departments, the Sales Office is the appropriate solution.
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Representative Office
When a foreign company wants to maximize control of its staff via its own HR, legal, and administrative departments, the Representative Office (RO) is the appropriate solution.
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Joint Venture
The Joint Venture can conduct business in China as a normal Chinese company, under the terms and conditions of the partnership regarding profit sharing, technology ownership, and operational control.

Wholly Foreign Owned Enterprise

Wholly foreign-owned enterprise (WFOE) is the most common form of business entity since it allows foreign investors to control the business of the WFOE

Wholly foreign-owned enterprises (WFOEs) must be filed (or approved by) and registered with the Chinese authorities, including:

  1. The Ministry of Commerce (MOC).
  2. The National Development and Reform Commission (NDRC).
  3. The State Administration for Industry and Commerce (SAIC).
  4. Local authorities.

The PRC Company Law was revised and came into force on 1 March 2014. The new law replaced the annual inspections of WFOEs’ financial books with an annual reporting system. WFOEs must submit their annual report for the previous year to the relevant government authorities. The cost of annual reporting is minimal.

The new Amendment of Company Law abolished the statutory minimum registered share capital requirements for Chinese companies. However, there are minimum capital requirements for companies operating in certain regulated sectors, such as financial leasing and telecommunications.

Capital contribution can be in non-cash consideration, such as industrial property rights, equipment, land use rights and equity.

Management Structure and Key Liability Issues

The shareholder/shareholders’ meeting is the highest authority of a wholly foreign-owned company (WFOE). The general manager is its top executive and is normally nominated by the shareholders and appointed by the board. The general manager is in charge of the WFOE’s daily management.

There are no specific restrictions on foreign managers.

Directors assume fiduciary duties and must not act against the WFOE’s interests.

A shareholder’s liability is limited to its contribution to the WFOE’s registered share capital. However, in certain cases, the corporate veil can be pierced.

Procedures for China Company Registration

1. Obtain a notice of pre-approval of the company name
2. Open a preliminary bank account
3. Obtain capital verification report from an auditing firm
4. Obtain registration certification with SAIC
5. Obtain the approval to make a company seal from the police department
6. Make a company seal

Additional Procedures

Obtain the organization code certificate issued

Register with the local statistics bureau

Register for local and state tax with the tax bureau

Open a formal bank account of the company and transfer the registered capital to the account

Apply for the approval to purchase or print financial receipts / invoices

Purchase uniform invoices

File for recruitment registration with local career service centre

Register with Social Welfare Insurance Centre

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Thailand Office
Singapore Office

Get in touch

ThailanD

Level 3, Prasert Sutt Building 360 Sanambinnam Nonthaburi Road,
Bang Krasor, Mueang Nonthaburi,
Nonthaburi 11000 Thailand

Singapore

#23-05. International Plaza, 10 Anson Rd, Singapore 079903

Contact Us

TH Phone : +66 (0) 97 106 9113
SG Phone : +65 9102 0303
Office Phone : +66 (0) 2 007 0971
Email : enquiry@inlps.com
Line@ ID : @inlps

Our Hours

MON-FRI : 09:00 – 18:00

Get in touch

Contact Us

TH Phone : +66 (0) 97 106 9113
SG Phone : +65 9102 0303
Office Phone : +66 (0) 2 007 0971
Email : enquiry@inlps.com
Line@ ID : @inlps

Our Hours

MON-FRI : 09:00 – 18:00

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Thailand Office

Level 3, Prasert Sutt Building 360 Sanambinnam Nonthaburi Road,
Bang Krasor, Mueang Nonthaburi, Nonthaburi 11000 Thailand

Singapore Office

#23-05. International Plaza, 10 Anson Rd, Singapore 079903

Our Affiliations

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