Business Registration China

Business registration China wide for foreign companies is quite unlike the procedures we have here in the UK for registering a company with Companies House. While the Chinese government welcomes foreign investors into its economy, the process of setting up business within the parameters of national and local legislation is not the easiest to negotiate. However, as many of the barriers are caused by a lack of understanding on the part of foreign companies, they can be overcome through proper research and expert advice. This article gives an overview of the framework and explains how the challenges can be met.

Business Registration China

The Most Common Structure For Startting A Business In China

If you are planning on Starting a business in China, one critical decision is selecting the form that will take. Most foreign businesses in China today adopt WFOE (Wholly Foreign Owned Enterprise) status, as it¡¯s the most flexible structure. You won¡¯t need a Chinese partner, unlike a Joint Venture (JV), the next most common model adopted by foreign businesses. You also have complete control - within the confines of Chinese law and the approved scope of the business at the time of registration - over the management and administration of your company. Moreover, a WFOE offers better protection of intellectual property, often a problematical issue for foreign companies registering as JVs. There are three main types of WFOE. The first offers consultancy services and does not trade in physical goods. The second is a manufacturing WFOE, producing physical goods. The third is a trading WFOE (also known as a Foreign Invested Commercial Enterprise, or FICE); this is one that sells goods through retail outlets, franchises and/ or wholesale distribution, but does not manufacture them itself. Each of these can be further broken down into subdivisions, depending on the type of operations carried out, and it is largely this that determines the documentation you need for a business license for setting up a business in China.

Business Registration China

How To Mitigate Delays In The Registration Of A WFOE China

Registering a WFOE China based can be more complex, time-consuming and expensive than you might initially think. Awareness of common causes of delays in registration ensures you prepare properly in advance. Articulating your business scope and the terms of your Articles of Association very clearly and concisely, for instance, is essential, or your application may be rejected. Another typical stumbling block is identifying the correct location in China to base your company. You need a long-term strategy, taking into account the regional differences in culture and economies that influence whether your venture is a success or a failure. A third difficulty occurs with even the apparently simplest decision: what should your company be called? The formula for a company name is consistent across all WFOEs: the company name, followed by the city name in brackets, then the type of company at the end. However, unfamiliarity with the Chinese language and the government¡¯s rigid rules on what names are acceptable can mean this becomes an unnecessarily drawn-out process. Overall, the more you research the procedure for business registration China, the fewer delays you¡¯ll experience. Another way of speeding up the process when you wish to open a company in China, though, is to take advice from a professional consultant.

Applying For A Business License In China

Once the company has approval of the business name, scope and location, it must apply for a?business license in China. This document is issued by the State Administration for Industry and Commerce (SAIC) and is, broadly speaking, the equivalent of a certificate of incorporation from Companies House in the UK. Theoretically, this is a technicality after the Ministry of Commerce¡¯s agreement to your business registration China based. In practice, though, there are many certificates and licenses necessary to back up your application. While some are common to all foreign companies applying for a business license, others are particular to your type of business. So, if you intend to import to China as part of your operations, you may require a specific import license. If your plans include, for instance, importing food to China, you may also need additional documentation for the goods you are bringing in. This might involve holding an import quota certificate; a certificate of satisfactory inspection by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ); and other safety certificates and licenses. Without the correct paperwork, goods may experience delays at customs; products might be deemed hazardous; and in extreme cases, a license to operate may be revoked. Inside knowledge of the system when applying for a business license is therefore invaluable.

Identifying The Right Agent To Work With For Company Registration China Based

There are significant dangers to 'going it alone' when pursuing company registration China wide. In the main, these can be related to bureaucracy and red tape, but there are also risks in terms of the language barriers and misunderstanding the business culture in China. For these reasons and more, it¡¯s always best to seek advice from the professionals when it comes to how to do?business in China. However, there are plenty of agencies on the internet, all promising great results: which one should you choose? Firstly, find a company with both native English- and Mandarin-speaking staff. While all company documentation must be completed in Mandarin Chinese, it is essential that you also understand exactly what you are signing up to, as you are ultimately responsible for any errors committed by your company. Secondly, the advisers you choose should ideally have a base in China ¨C some stages of the process may need to be carried out face-to-face; and having a knowledgeable individual on the ground can facilitate the smooth running of your company¡¯s registration. Finally, look for a high level of experience in how business operates in China. That way, you can be sure of the quality of advice you receive. For all this and more, you can trust in Yaxin.

Professional Assistance With Business Registration China Based From Yaxin

It¡¯s a popular misconception that delays in the business registration China process are predominantly caused by the slow-moving nature of the Chinese authorities. In fact, from the few examples given above, it is often more likely that the applicant¡¯s unpreparedness lands them in trouble. This is where Yaxin comes in. Our expertise and knowledge of Chinese business regulation, the economy and culture will guide you through the process. We¡¯re proud to state that we can secure the documents foreign companies require to begin operating faster than any other company. Head to our website at, or speak to us direct on 010-5747 3212 today for more information.