Foreign investors can consider the appealing business climate in China and set up their operations in a fast and reliable manner, respecting the applicable laws of this country. Our company formation agents in China can direct entrepreneurs throughout the registration process of a business in China by providing comprehensive support and assistance at any time. The following set of frequently asked questions can help foreign business persons understand better the rules and regulations of how companies perform their activities in China:
1. What types of companies can be registered in China?
Entrepreneurs from abroad can set up WFOEs (Wholly Foreign-Owned Enterprise), joint venture companies, partnerships, representative offices, private enterprises and sole proprietorships. WFOE represents the most popular business entity for foreign investors.
2. How fast is the incorporation process in China?
With fewer formalities, a company in China can be registered within a few working days, if all the requirements are respected at the time of documents submission. In order to speed up the company formation in China, we suggest you address to our team of advisors at any time.
3. Does the enterprise need to have an office in China?
Entrepreneurs from abroad can benefit from a traditional office for their future activities in China or can ask for virtual office services for lower costs. One can open a company in China in cities like Beijing, Shanghai, Shenzhen, Tianjin, Hangzhou or Shenyang.
4. How can a foreigner set up a WFOE in China?
The registration process of a WFOE in China starts with an application to the State Administration for Industry and Commerce of the People’s Republic of China. The Articles of Association must comprise information about the owners, the name of the company, the business address, the activities, the representative, the board of directors. As soon as the WFOE is incorporated, the next step is to register for tax purposes.
5. How can a bank account be set up in China?
The corporate bank account is necessary at the time of company registration for minimum share capital and for future financial operations. The bank account must be opened in the local currency if the company’s documents are provided to the chosen financial institution.
6. Can foreigners set up branches in China?
Yes, they can set up branches in China in complete agreement with the Companies Act and the Commercial Code. One should know that the documents of the parent company are necessary when establishing a branch in China.
7. What taxes are imposed on foreign investments in China?
The VAT, the business tax, the income tax, the consumption tax, the resource tax, the stamp tax, and the vehicle and vessel usage license plate tax are among the imposed fees for foreign enterprises in China.
8. Did China sign double tax treaties?
Yes, China aligns with the signatory countries of double tax agreements. There are more than 100 double taxation treaties signed by China.
9. Which are the steps after company incorporation in China?
As soon as the certificate of incorporation has been issued, the owner of the business must open a bank account, hire an accounting firm, apply for tax purposes, register for tax invoice and apply for China work visa.
10. Why should I invest in China?
Without a doubt, China is the second largest economy in the world and represents a strong financial center at an international level. The manufacturing sector, the agriculture, the tourism, the energy, and engineering sectors alongside with the extremely developed IT field sustain and flourishing economy of China.
Foreign investors who want a start a company in China can contact our team of company formation representatives in China for complete assistance and information.