China is one of the world’s fastest-growing economies, with annual GDP growth of 9.5 percent in 2018. China’s robust economic growth is attracting a growing number of foreign investors who want to expand their businesses in the country. As a result, China has earned a reputation as a place of expanding commercial opportunities. China is also creating a business-friendly climate by assisting investors in establishing businesses in the country. China has been a member of the World Trade Organization since December 2004, making it reasonably easy to start a business in China.
If you’ve decided to start a business in China, you can start the procedure by filling out the following forms:
Step 1: Planning of your business idea
Step 2: Choosing a suitable corporate entity
- You can choose the most appropriate corporate entity for your firm after assessing your business goals and operations.
- The three types of entities are WFOE, JV and RO.
Step 3: Reserving of the company name
- After you’ve decided on a firm name, you can apply for permission from the Administration of Industry and Commerce.
- It’s critical to make sure your business name is distinct from others already in operation.
- The approval of the company name can take 2-15 days depending on your business location.
Step 4: Registration of the company
- You can register your application with the Ministry of Commerce (MOFCOM) and the State Administration of Industry and Commerce after completing the Memorandum and Articles of Association (SAIC).
- After review by the relevant authorities, you will be notified if the certificate has been approved or denied.
- You will be given an approval certificate and an operating license if you are approved.
Step 5: Application of business license
- You may apply for a “5 in 1” business license from the local Administration of Industry and Commerce (AIC).
- The main business license, tax registration certificate, organization code certificate, social security registration certificate, and statistical registration certificate are all covered by the application.
Step 6: Registration with the Public Security Bureau (PSB)
- In order to get company chops that are used to validate contracts, you will have to register with the PSB.
Step 7: Corporate bank account opening
- A WFOE requires minimally two accounts, a local currency account and a capital contribution account.
Step 8: Staying compliant
- This includes the annual filings and tax obligations.
The procedure of forming a company in China may appear daunting. If you want to start a business in China but aren’t sure where to start, Tetra Consultants can help. The registration of your company in China will be simple and straightforward with Tetra Consultants on your side. Planning and strategizing with our clients to select a proper company entity, finishing the registration procedure, acquiring essential licenses, opening a corporate bank account, and guaranteeing your compliance with government rules are all part of our entire service package.
Contact us now to get more information about starting business in China, and our dedicated and experienced team will support you soon.