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Open a Financial Company in China

Open a Financial Company in China

The large opportunities of business in China often includes the creation of a financial company. The non-banking sector in China is well respected and open to foreign investors wanting to make profits in this important sector. Having a relaxed investment policy makes entrepreneurs decide for opening a WFOE in China for complete ownership in their firm. In this matter, you are invited to talk to our team of company formation agents in China and solicit information and assistance for opening a financial company in China.

What are the conditions for opening a financial company in China?

First of all, a WFOE (wholly foreign-owned enterprise) in China needs to be established before running the financial activities or the non-banking financial institutions (NBFIs). This is the suitable business structure for foreign entrepreneurs who want to do business in China and who want to have complete control over their shares in the company. Here are a few important conditions which need to be considered when opening a financial company in China:

  • a WFOE is created on the basis of the Articles of Association with information about the owners, the board of managers, the internal rules;
  • just like any other form on business, a financial company running under the rules of a WFOE needs to be registered for tax purposes;
  • your financial company must have a representative agent in charge of the legal aspects of the firm; our consultants can help in this matter;
  • the State Administration of Industry and Commerce, plus the Ministry of Commerce are the institutions that issue the approvals for your business in China.

Instead of dealing with misunderstandings in terms of language and registration aspects when it comes to your financial company in China, we suggest you address to our team of specialists in company formation in China. We also mention that we can act behalf of your firm and we can represent your business if you live abroad.

Other business structures for a financial company in China

Foreign investors can also decide on joint ventures instead of a WFOE which is suitable for large businesses in China. Also, there are many foreign entrepreneurs who choose to open a representative office in China before performing their activities. This way, they can discover and verify the financial market and choose suitable operations in accordance with the clients they intend to serve. We can provide business consulting services at any time, so please feel free to get in touch with us.

If you have planned to open a company in China, it is best to collaborate with a team of specialists with experience in this area. They can take care of a series of formalities, including the preparation of documents, opening a bank account, and obtaining a business license and a company seal. The process of setting up a company can take around 3 months if all the documents and formalities are respected. Our agents can simplify the collaboration with the relevant authorities, so do not hesitate to contact us.

What type of financial companies can I open in China?

Even though the banking sector is thriving in China and is sustained by numerous subsidiaries or branches of banks from abroad, there is plenty of room for other financial companies too. For example, foreign or local investors can open credit companies, brokerage, and insurance firms, investment banks, loan associations, or mortgage companies. There is also the option of offering financial counseling services for small, medium, and large corporations in China.

The activities of NBFIs in China

The financial companies in China present similarities with the activities of banks in this country. However, they will run at a small scale, being involved in short-term liquid liabilities which can be transformed into loans or long-term illiquid assets. A financial company in China presents more flexibility, is extremely competitive in the market, and can provide the necessary services for all investors or clients who need to be in complete control of their money. Implicit guarantees, funding channels, and varied credit lines are at the disposal of customers in a less restrictive manner compared to banks. If you would like to know all the aspects involved in a company formation in China, please address to our representatives.

Who can access the services of financial companies in China?

A financial company in China addresses to natural persons, corporations and other entities due to its variety of investments and financial solutions offered. There are cases in which small companies decide on an NBFI in China and solicit loans in the long or short-term, and with flexible taxes. The innovation in the financial sector in China also aims to the development of financial institutions non-bank related. Also, the Chinese government sustains such businesses in China, being aware of the fact that they sustain the country’s GDP in a large proportion. Trust loans, bank-accepted bills, entrusted loans, and other alternative financing solutions are at the disposal of clients who direct their attention to NFBIs in China.

We kindly invite you to contact our team of company formation agents in China and ask for support and information in opening a financial company in China.