China

Official Name: People’s Republic of China

Capital: Beijing

Language: Standard Chinese

Currency: Renminbi (yuan)(¥)

OUR SERVICES;

Consultation (in person, online, phone)
Helping to prepare your documents
Start to finish your company registration process
Immigration services

China is a country located in East Asia and is the most populous country in the world. With a rich history and culture dating back thousands of years, China has had a profound impact on the world in various areas, including politics, economics, and culture.

History:
China has a long and storied history, with the first dynasty, Xia, believed to have been established around 2100 BCE. The country has seen the rise and fall of many dynasties, including the Han, Tang, and Ming dynasties, each leaving their own lasting legacies on Chinese culture and history. In the 20th century, China underwent a series of major political changes, including the founding of the People’s Republic of China in 1949 and the Cultural Revolution from 1966 to 1976.

Economy:
China has become the world’s second-largest economy, after the United States. The country’s economy has grown at an unprecedented rate over the past few decades, driven largely by its manufacturing and export industries. In recent years, China has also made significant investments in technology and innovation, with the goal of becoming a global leader in these areas.

Politics:
China is a one-party communist state, with the Communist Party of China (CPC) being the country’s sole governing party. The government exercises strict control over many aspects of daily life, including media and internet access. China is also known for its complex relationship with Taiwan, which is considered by China to be a renegade province.

Culture:
China has a rich and diverse cultural heritage, with a long history of arts, literature, philosophy, and traditional medicine. The country is also known for its martial arts, such as Kung Fu and Tai Chi, and its cuisine, which varies widely across different regions. Traditional Chinese holidays, such as the Spring Festival and the Mid-Autumn Festival, are still widely celebrated today.

In conclusion, China is a fascinating and complex country with a rich history and culture. Its economy has experienced remarkable growth in recent decades, and its political system and relationship with other countries remain a topic of global interest.

Types of company registration

Wholly Foreign-Owned Enterprise (WFOE): A WFOE is a limited liability company wholly owned by foreign investors. It is a popular choice for foreign investors looking to set up a business in China, as it allows for full control over the business and profits.
Benefits:

Full control over the business
No need for a local partner
No restrictions on the type of business activities

Joint Venture (JV): A JV is a business partnership between a foreign investor and a Chinese partner. This type of company is often used for businesses that require local knowledge or expertise.
Benefits:

Access to local knowledge and expertise
Shared risk and investment
Ability to access restricted industries and markets

Representative Office (RO): An RO is a type of company that is established by a foreign company to conduct market research and promote its products or services in China.
Benefits:

Low cost and simple setup process
Allows foreign companies to test the market before making a larger investment
Can hire local staff and conduct research and marketing activities in China

Foreign Invested Partnership Enterprise (FIPE): A FIPE is a business partnership between foreign investors and Chinese partners. It is a relatively new type of company in China and is becoming increasingly popular.
Benefits:

Shared risk and investment
Greater flexibility in terms of management and operations
No minimum registered capital requirements

Limited Liability Company (LLC): An LLC is a type of company that can be owned by both foreign and Chinese investors. It is a flexible and popular choice for many businesses in China.
Benefits:

Limited liability protection for shareholders
Can be wholly or partially foreign-owned
Simple and low-cost setup process

Advantages of company registration in China

Access to a Huge Market: China has a population of over 1.4 billion people, making it the world’s largest market. By registering a company in China, foreign investors gain access to this vast market and can tap into the country’s growing middle class.

Favorable Business Environment: The Chinese government has implemented several measures to make it easier for foreign investors to do business in the country. These include tax incentives, streamlined registration processes, and improved intellectual property protection.

Low Cost of Labor: China has a large and relatively inexpensive labor force, which can be a major advantage for businesses looking to keep costs down. This is particularly true for labor-intensive industries such as manufacturing.

Strategic Location: China’s location in East Asia makes it an ideal hub for businesses looking to expand their operations throughout the region. Its proximity to other major markets such as Japan and South Korea makes it an attractive location for foreign investors.

Investment Opportunities: China is home to many growing industries, including technology, healthcare, and renewable energy. By registering a company in China, foreign investors can take advantage of these investment opportunities and potentially achieve high returns on their investment.

Supportive Government Policies: The Chinese government has implemented a range of policies to support foreign investment in the country. These include the Belt and Road Initiative, which aims to improve infrastructure and trade links between China and other countries, and the China International Import Expo, which provides a platform for foreign companies to showcase their products and services in China.

General Questions

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.