Mainland company incorporationAdvanages of a company in mainland China:
- Legal activity in China
- Import and export licenses
- Export VAT return
- The possibility of hiring foreign and Chinese employees
- The ability to arrange work permit for foreign employees
Strict control of domestic and international money transactions
Strict tax and customs control
There are 3 types of companies:
- A Foreign Invested Partnership Enterprise (FIPE)
- Wholly Foreign Owned Enterprise (WFOE)
- Representative Office
The term partnership enterprise refers to general partnerships and limited partnerships which may be established within China by individuals, legal persons and other organizations. A state-funded company, state-owned company, listed company, public welfare-oriented public institution or social organization may not become a general partner of a limited partnership
This is the most convenient option for foreign companies to conduct business on the territory of mainland China.
The advantages of establishing a WFOE include, but are not limited to:
- Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner;
- Ability to formally carry out business rather than just function as a representative office and being able to issue invoices to customers in RMB and receive revenues in RMB;
- Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
- Protection of intellectual know-how and technology;
- Full control of human resources Greater efficiency in operations, management and future development.
Our main advantage - high speed of registration. Thanks to the accumulated experience and established relations, we're proud to say that we can register a company in China in just 3 months, unlike other registrars, whose process takes about six months.
1 - 2x Certificate of Incorporations, Articles of Formation or Equivalent document certified by Chinese embassy or Chinese consulate overseas [UK,US,HK,AUS,RUS,SGP,GER,SWE,ISLetc. ]For individual investor: 2x Passport copies of Investors need be certified by Chinese embassy or consulate. [individual investor] Double check with us if individual investor is currently in China as some cities in China allow individual investor to submit with their original passport.
2 - 2x Bank Reference Letters from investor’s bank (declare a good standing)
3 - Passport copy of: Parent company's director China company's Legal Representative and China company's supervisor
4 - China Legal Representative provides: 6 photos (2 inches size), brief resume
5 - Registered capital; Business Scope; 8 proposed Chinese names of China company
6 - Office address in China, 2x leasing contracts , 2x certificate of real estate ownership, and 2x landlord identification
7 - 4x Letter of Authorization
8 - For Trading WFOEs only: The latest annual audit report copy from the parent company: provided by a Certified Public Accountant (CPA)
All documents must be translated into Chinese. This does not apply to the option if to incorporate a company on behalf of a Hong Kong company, since all its documents in Chinese and English.
The option of registration on behalf of the Hong Kong companies facilitates the procedure of legalization of documents, so as to legalize the required documents on registration of the company.
The timing of the registration of the company with 100% foreign capital
Approval name: 7 working days
Permits for opening company: 20 working days
Getting disbarred for business and tax registration: 15 working days
Bank account: 7 working days
A TOTAL of about 2.5 -3 months for the entire procedure.
The cost of registration services = $ 3,000 (state fees included).
Legalization of documents of a Hong Kong company = $ 1,000.
For more information please contact our specialists
A Representative Office in China:
May only engage in non-profit making activities, it can carry out the following functions:
1 - Conduct research and survey for its parent enterprise in the local market;
2 - Liaise with local and foreign contacts in China on behalf of the parent enterprise;
3 - Conduct research and provide data and promotional materials to potential clients or trading partners;
4 - Act as a coordinator for the parent enterprise's activities in China;
5 - Make travel arrangements for parent enterprise representatives and potential Chinese clients;
Under no circumstances may a Representative Office do the following in China:
1 - Directly engaged in any business for profit;
2 - Sign contracts or deals on behalf of the parent enterprise;
3 - Represent any firm other than its parent enterprise;
4 - Collect money or issue invoice within China for services or products;
5 - Buy property or import production equipment.
Representative offices are also required to maintain accounting records, pay taxes.
Documents required for registration of a representative office in China:
- Legalized company's registration documents
- Director Passport copy
- Bank statement on the account of the company
- ffice address in China, 2x leasing contracts , 2x certificate of real estate ownership, and 2x landlord identification
The price of registration of representative office = 2650 USD.