Official Name: People’s Republic of China
Language: Standard Chinese
Currency: Renminbi (yuan)(¥)
- Consultation (in person, online, phone)
- Helping to prepare your documents
- Start to finish your company registration process
- Immigration services
China is located in the East Asian region and is the second-largest country on the continent after Russia and has land borders with Russia, Mongolia, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Pakistan, India, Nepal, Bhutan, Burma, Vietnam is North Korea. It is also bordered on the east and south by the East China Sea, the Gulf of Korea, the Yellow Sea, and other open waters. The country’s climate is very diverse, from tropical and rainy areas in the south to very cold in the north.
China’s economy has changed dramatically since the late 1970s and is still growing. In terms of purchasing power parity, China has the world’s second-largest economy and a major player in the global economy. China’s economy ranks third in the world after the European Union and the United States. The World Bank has described China’s economic situation as favorable and its macroeconomic environment as stable.
China is one of the countries in the world in terms of company registration and capital attraction and is at the forefront of the world in this field due to its investment policies. By the end of 2003, businessmen from more than 170 countries and regions around the world had invested and registered companies in China and the number of foreign institutions and companies had reached more than 400,000. In addition, large international groups and multinational corporations have taken stock of the Chinese market, with almost all of the world’s top 500 companies investing in China.
The approximate cost of registering a company in China
The cost of registering a company in China depends on the city in which the company is established, with a minimum capital requirement of between $ 15,000 and $ 40,000.
Corporate tax rates in China
A foreign company is also taxed in China if it is established in China or earns its income in China. The standard tax rate in this country is 25 percent, but for small companies with an annual income of less than one million yuan, it is 10 percent and for advanced companies, it is 15 percent.
VAT rates in China
The standard VAT rate in China is 13%. 9% applies to products such as books and oils and 6% to services. But for medical protective equipment (PPE) the VAT is zero percent.
The benefits of company registration in China
- Residence in China for applicant and family
- No need for a local partner
- Issuance of import and export business cards
- Bank account opening (dollar – euro – yuan)
- Export Exemptions
Type of Company in China:
Representative Office Registration in China:
The representative office is affiliated with the parent company, which manages the relationship between the two. The parent company must have at least two years of experience. The representative office is not a separate entity and all legal responsibilities of this office are the responsibility of the parent company. In such a way that he can not issue any invoice and consider his income without tax as his own. The company’s expenses must also be fully covered by the parent company.
All foreign-owned companies:
These companies are known as WOFEs, which are registered by foreigners and 100% owned by them in China, which are a limited liability company (LLC). Limited liability companies can be registered for issues such as manufacturing, trading, services, and consulting, which can be considered the most popular type of company format among foreign investors. One of the advantages of this company is that you can fully own the company. Have your own and you will not necessarily have the participation of Chinese people in your company.
Joint Venture Company (JV):
Joint Venture is the most effective example of investment and economic solution for the government. These examples of companies are bi-national or multinational companies, which is one of the most common methods of investment by foreigners in other countries. In this way, investors cooperate with each other by buying stocks and mutual trade relations, and by adding Chinese people or other investors from any country, invest in a joint venture complex in specific fields and topics, and benefit from its mutual benefit in Benefit from producing and providing services.
The company registration process
Step 1: Choose a name for the company before registering
At this stage, a name needs to be registered for the company. Registration rules for the company are sometimes very strict and sometimes evaluated under normal circumstances. The name chosen for the company should have a specific meaning and not contradict the company’s activity (if it is appropriate to the company’s activity or services, it has a better chance of acceptance). The name should be short and real, the use of strange names is often not accepted. The name must be unique and not a copy of the name of other registered companies. The name chosen for the company should not conflict with Chinese law. You can put an English name on your company and make the company seal with the same name.
Step 2: Apply for a company certificate
The stage begins when the company name has reached the initial registration. At this stage, the necessary application for obtaining a company registration certificate needs to be considered in writing and in accordance with special principles. This process sometimes takes a month and is considered the initial start of registration.
Step 3: Apply for a company seal
If the process of registering the name and applying for a company certificate is completed without any problems, you need to apply for a stamp for your company. Since the foreign applicant actually enters the business space by registering a company in China, he will definitely need a stamp. Your company stamp is registered through the legal process.
Step 4: Apply for an industrial certificate
If your company has industrial activity, it needs to register an industrial certificate, and the type of industrial activity, and the necessary arrangements must be registered in the certificate.
Step 5: Open a company bank account
The company needs its own bank account and the account must be opened legally and at the right time and place. This step is very important and will be reviewed by the relevant authorities.
Necessary conditions and documents for registering a company in China
- Choose a location for a company or factory office
- Formal application for the company or office registration to China Trading Company (PRC)
- Business plan and feasibility report
- Bank account number inside China
- Names of shareholders and board members of the company
- Identification documents of managers and shareholders
- Profile of the active forces of the company in China
- Equipment and supplies needed, especially people entering the country
- Registration with the Tax Office of China
- Employee registration with the China Social Security Administration
It should be noted that shareholders must take the necessary steps to insure and register their employees with the Chinese Social Security Administration.
- The company is also exempt from paying taxes on machinery and equipment, such as vehicles, raw materials, etc., or their taxes will be reduced.