How to Register A Foreign Company in China? Check if you can!

According to China's Ministry of Commerce, the number of foreign-invested companies newly established in China in the first 11 months of 2021 was 43,370, rising 29.3 percent year-on-year. 

source:www.gov.cn

Gao Feng, a spokesperson of the Ministry of Commerce said that, the relevant departments and local governments have been working together since 2021, and China's foreign investment environment is optimized continuously.

Since 2022, China has made efforts to expand high-level opening-up, and a number of major foreign investment projects are being put into operation in China quickly. China still attracts the foreign investment, and foreign investors continue to be optimistic about the Chinese market.  

China has taken measures to improve the business environment for foreign investors.

1.Promote the level of opening-up

China shortens the negative lists for foreign investment, and creates a more open and transparent investment environment for foreign investors.

2.Improve the level of investment facilitation

China lowers the threshold for foreign-invested research and development centers to enjoy preferential tax policies.

3.Promote the service level of foreign-invested companies and projects

China ensures the normal operation of foreign-invested companies and speeds up the construction of key projects.  

4.Improve the level of investment promotion and protection

China strengthens the protection for the legitimate rights and interests of foreign investors, and improves the mechanism for complaints from foreign-invested companies.

source: People’s Daily, CCTV, Xinhua, www.gov.cn

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China has stepped up efforts to create a more sustainable and supportive business environment for enterprises to grow, which has also firmed up foreign investors' long-term confidence in doing business in China. 

If you also want to register a foreign-invested company in China, it is necessary to check whether you meet the requirements and understand the registration process in advance.

Registration Requirements

01

Corporate Shareholders

The shareholder of a wholly-foreign owned enterprise should be a foreign enterprise or a foreign resident (a natural person). 

The Chinese shareholder of a Sino-foreign equity joint venture can be a Chinese resident (a natural person) or a company registered on Chinese mainland.  

02

Registered Capital

The registered capital of a foreign-invested enterprise shall fit in with the enterprise's scope of business operations; and the proportion between the registered capital and the total amount of investment shall conform with the provisions of the relevant Chinese laws and regulations. 

Reminder: After registration, the enterprise shall engage a Chinese registered accountant to carry out verification, and to submit a report on the verification of capital.

03

Registered Address 

The registered address of the company must be a office address for commercial use. The house rental contract or the property ownership certificate will be needed when registering a foreign company in China.

04

Company Name

If a foreign investor want to register a company in China, he or she should first apply for the approval of a company name. It’s necessary to submit several company names to be verified and avoid failure in verification.

05

Company Directors

To register a foreign company in China, the company may set up a board of directors with at least three members, including a chairman and other directors. If there is no board of directors, an executive director shall be needed. It should be noted that the directors are required to provide identification documents.

06

Company Supervisor

A foreign-invested enterprise can appoint a mainland resident or a foreigner as the supervisor. The supervisors also need to provide identification documents.

07

Business Scope

When a foreign investor register a company in China, the scope of business must be clear. The registration of foreign companies in China adopts the examination and approval system. Foreign investment is restricted in some industries in China, and it should be approved by China's Ministry of Commerce.

08

Legal Representative

The foreign-invested enterprise need to set up a legal representative, and submit the identification documents and photos of the legal representative. In addition, the legal representative may be a Chinese person or a foreigner.  

09

Articles of Association

The articles of association must specify the company name, company address, business scope, shareholders and their investment proportion, registered capital, rights and obligations of shareholders, directors and supervisors, and so on.  

Registration Process

First, the company name should be approved by the industrial and commercial bureau, and the foreign investor need to prepare some names to avoid that there are similar names.

Then, the foreign investor should submit the relevant documents of company registration to the local industry and commerce department, and apply for the company registration.

After the application has been approved, the foreign investor shall apply to the industry and commerce administration authorities for registration and obtain a business licence within the given time. The date of issue of the business licence shall be the date of the establishment of the enterprise.

If the foreign investor obtain a business licence successful, it is also important to focus on the follow-up work.

The foreign investor should carry the business license to the designated place of the industrial and commercial bureau and carve seals, mainly including official seal, financial seal, legal representative seal, invoice seal.

The foreign investor also need to open a bank account for the foreign company with the required documents.

Once getting the business license, the foreign investor have to apply for tax registration, and  shall pay taxes in accordance with the provisions of Chinese laws and regulations.

Attention！！！

After the company is registered, it should do accounting and declare tax within a month to avoid tax risks. If the company doesn’t declare tax over six months, it will be listed in the catalogue of enterprises with irregular operations, and it will even be blacklisted by the industry and commerce department.  

China will continue to promote high-level opening-up, provide better services for foreign investment, and create a more attractive and international business environment.  

HACOS has rich experience in helping foreigners opening companies in China. If you are interested in doing business here, welcome to consult us!