China Company formation (Wholly Foreign Owned Enterprise – WFOE)
Company business activities:
You can choose one of the following activities:
- Domestic trade
- Export & Import
- Service-based business
Depending on the name of the company and the selected type of activity you will be offered to make different amounts of the authorized capital for the company in China. For example, a company providing services must have authorized capital of not less than 500 thousand yuan, trading/production company (internal trade) – 1 million yuan, trading/manufacturing company in China (foreign trade.) – from 1.5 million. yuan.
If you want to register a company, which name contains the word “International,” “Investment,” “Industrial,” you will be offered to make the authorized capital of not less than 10 million RMB. If we are talking about a name containing the words “Group,” “Holding,” then to the size of the authorized capital requirements may increase up to 30 mln. Yuan or even higher.
The share capital can make all at once or in installments, but at least 15% within the next three months from the date of registration of the company in China, the rest can be made in a period of one-two years, but you will need to provide a schedule of payments.
Due to the fact that the introduction of the authorized capital of the individual parts must be filled each time a specific set of documents, which is then registered with the state authorities, the cost of our services for company registration will be different from the cost of a single application, provided the entire amount of the authorized capital.
Office for China company
For your business activities, you need to rent an office in China while you register a company in China. The office space shall not be less than 30 square meters. The office must be located in a commercial type of building. The term of the signed lease agreement must be at least one year. Leasing contract must have the signature of the lessor and tenant representative (parent company or the legal representative of your company), as well as the stamp of the Municipal Property Department (Housing Management Authority).
Depends on the type of the company, registration period deadlines can be different:
- Manufacturing company: 60-90 days
- Trading company (domestic trade): 60-90 days
- Trading company (export/import): 60-90 days
- Service-based company: 60-90 days
Mandatory corporate structure in China
You should provide the following information about your company:
- Shareholder: can be a person or foreign legal entity
- Director: should be a person (foreigner or a Chinese) 18.y.o.+
- Supervisor: shareholder representative
- Legal Representative
The director or other employees can not be Supervisors. But, some of them can be a legal representative.
- Three sets of corporate documents of the holding/parent company, including the Certificate of Registration of the Company, Business Registration Certificate, Charter, other documents confirming the corporate structure. The authorized capital, type of activity, certified by a notary public in the country of incorporation. The documents must be translated into Chinese and certified by the Chinese embassy/consulate in the country of incorporation. It is required when a shareholder of the Chinese company is a legal entity.
- Two original letters of recommendation from the bank where shareholder has an account. This letter should be issued not later than 6 months before the date of submission of documents for registration of a Chinese company. This letter should reflect the amount available for investment in the share capital of the Chinese company’s funds in a bank account. Letters should be translated into Chinese and certified by the Chinese embassy/consulate in the country the bank is located. It is required when a legal entity is a shareholder or a physical person is a shareholder.
- Last audit report prepared and certified by a Certified Public Accountant (Certified Public Accountant) if company’s age is more than one year. It is required when a shareholder of the Chinese company is a legal entity. The document must be translated into Chinese and certified by the Chinese embassy/consulate in the country of incorporation.
- The document certifying the official seal of the parent company. It is required when a shareholder of the Chinese company is a legal entity.
- A true certified copy of an identification document (eg. passport), the Director of the parent company. It is required when the shareholder of the Chinese company is a legal entity. The document must be certified by the Chinese embassy/consulate in the country of incorporation.
- A true certified copy of an identification document (e.g., passport) founder. It is required when the shareholder of the Chinese company is a natural person. The document must be certified by the Chinese embassy/consulate in the country of incorporation.
- Originals and certified copies of identity documents (e.g., passport for foreigners and an ID card for the Chinese) of Director, Supervisor, Legal representative, Chinese company manager. The document must be certified by the Chinese embassy/consulate in the country of residence of the foreign application submitted, either in China representative of the auditing company, it refers to Chinese citizens.
- Eight color photographs (size 2 inches) for the Director, Supervisor, Legal representative.
- 2-3 desired company name in Chinese version to further validating and selecting one of them.
- A detailed description of the Chinese company’s business, including the amount of the authorized capital, payment schedule.
- The management decision of China company formation.
- The organizational structure of the company with an indication of the key figures.
- Office leasing agreement
China company formation procedure:
- Send us your query and get your preliminary consultation
- We send you the official requirement form, you sign it and send us to scan copy
- The original of the requirement form can be sent together with other documents
- We issue invoice
- After payment of the invoice, we prepare all the necessary documents and send to you for signatures
- You send us original signed documents
- We pass the package of documents to the Government authorities
- The next step is the process of checking and confirmation of supporting documents by Government authorities
- Department of Commerce and Industry issuing the business license
- Public Security Bureau registers the company stamps
- Bureau of Quality and Technical Supervision issuing the register number for company
- Getting the license in National & Local Tax Bureau
- Getting the Certificate in State Statistical Bureau
- Obtaining permission to open foreign exchange accounts and RMB
- Obtaining permission from National Administration of Foreign Exchange
- Bank account opening
- Export/Import license (for export/import trading companies)
- Obtaining the Financial Registration Certificate from Financial Bureau
China company formation cost
China company formation cost would be about something between 30 000 and 70 000 yuan.
We also offer our help in finding the office space for rent.
Additionally, we also help with visas for your company employees or business visa for you.
If you need to know more details or have any questions, please contact us!