The People’s Republic of China is a global economic leader with a GDP of $13 trillion, with businesses and companies in Mainland China playing a significant role in the growth of this nation as a global manufacturing giant. China has radically transformed its economy from being an agricultural nation to an international manufacturing superpower with state-of-the-art infrastructure, innovation, and visionary governmental policies, which has started the country on the road to expeditious development. The emerging opportunities that have sprouted across a wide range of industries and market sectors are granting an excellent scope for investors and companies who are looking for company registration in China.
Why Start a Business in China?
Setting up a company in China is one of the best ways to enter its growing market, driven by robust manufacturing, a stable central government, excellent connectivity, world-class infrastructure, and global market reach. By establishing a business in China, you can leverage all the advantages the country has to offer. This is further supported by the foresight and strategic planning of the Chinese central government, which transformed China with initiatives like "The Great Leap Forward" and a focus on developing key business sectors along with allied services. Additionally, China is actively opening its markets to investors, entrepreneurs, and innovators through government reforms that support foreign business operations in the country.
Due to features like:
- Legendary policies
- Initiatives like the One Belt One Road (OBOR)
- A rapidly developing seaport with world-class facilities
- Exceptional connectivity within China through superhighways and high-speed rail links
- Nurturing startups with state-of-the-art facilities
- Development of high-tech zones for specialized industries
- Special economic zones to enhance free market competition
- Free-trade zones offering groundbreaking economic and social advantages
- A distinctive arbitration mechanism
Company set up in China and has gained immense popularity, making it a lucrative business move.
Why Should a Company Set Up in China Be Your Next Move?
Setting up a company in China is one of the best decisions you can make when expanding your business or starting a new venture. While the country offers enormous advantages for businesses, industries, and manufacturing companies, the process of establishing an organization here is complex and requires proficiency in Mandarin and connections in the right places. Despite these challenges, you can rely on a professional business incorporation service like BSW to guide you in kick-starting and establishing a successful business in China. By hiring us, you can solely focus on your business operations and services while we handle the essential legal processes, acquire necessary permits and licenses, manage intellectual property, and deliver a complete setup for your company.
Process of Registering a Company in China
Company registration in China is an elaborate process requiring you to consider the region of operation in Mainland China, the scope of operations, registration and submission of documents, applying for appropriate licenses and finally, company incorporation. The step-by-step process for registering a business in China is given below:
- Choose your business scope
- Choose the right location for your entity
- Choose the right entity status for your company
- Devise a tailor-made business plan for operations
- Submit your company’s name in Mandarin for pre-registration (SAIC should approve it)
- Register and acquire the Letter of Approval from the Ministry of Commerce (MOFCOM)
- Sort out the following essential documents to obtain the Chinese Government's Approval:
- Pre-registered Chinese brand/entity with SAIC
- The new company’s legal address
- Article of Association (Company’s Profit repatriation analysis and report)
- Registered capital amount (no minimum value)
- Feasibility study (for manufacturing firms)
- Register with the Public Safety Bureau (PSB)
- Register with the State Administration of Foreign Exchange (SAFE)
- Open your company’s offshore bank account and foreign capital account
- Register at the tax bureau and set up your company’s financial information
- Hire an accountant and cashier, or avail yourself of accounting and bookkeeping services
- Develop a comprehensive staff handbook for your local employees
- Trademark your Intellectual Property with the China Trademark Authorities
Licenses and Permits for Business in China
A range of licenses and permits are required for nearly all business activities in the People’s Republic of China. Regulated activities in China require a general Chinese business license, an administrative license for businesses involved in product sales and manufacturing, and special permits for certain business activities such as pharmaceuticals, internet-based services, import and export, and e-commerce.
A company operating in China is subject to various types of licenses and permits depending on the following criteria:
Type of Business
- WFOE
- Joint venture
- FIPE
- FRO
- Private enterprise
- Individually owned
- SOE
Scope of Operation
- Product development
- Sales
- Service
- Consultancy
- Processing
- Marketing
- Internet-based
Industry Sector
- Manufacturing
- E-Commerce
- Chemicals
- Raw materials
- Energy
- Construction
- Shipping
Provincial-Level Administrative Location
- Province
- Autonomous region
- Special administrative region (SAR), including Hong Kong and Macau
- Specially designated cities like Shenzhen, Ningbo, etc.
Zone of Operation
- Free Trade Zone (FTZ)
- Special Economic Zone (SEZ)
- High-Tech Zone
At Business Setup Worldwide, we are well-versed in Chinese legislation, business incorporation, and the licensing and permits required for all types of industries and business operations. We offer comprehensive assistance, starting from analyzing the scope of your business operations in the jurisdiction and the current economic landscape to helping you select the best location for your business and obtaining the necessary licenses and permits. In addition to these services, we have particular expertise in business registration, regulatory compliance, accounting and bookkeeping services, and visa services in China, and many more. Above all, we believe in transparent pricing with no hidden charges. Client satisfaction and trust are central to our business philosophy. Contact us for more information on company setup in China and assistance with company registration—we are here to provide the guidance you need to succeed in your business endeavours.
