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Open a Healthcare Business in China

Open a Healthcare Business in China

The Chinese authorities encourage private and foreign investors to implement their businesses in the healthcare system, considering the demographic changes in the past few years, particularly when it comes to China’s aging population. In this sense, pharmaceutical companies, private clinics or medical suppliers can respond to the business opportunities offered in this country, mentioning that there are specific rules to consider at the time of company registration. With the support of our company formation agents in China, one can properly set up a healthcare business in China, as our team can handle the requirements imposed by the authorities.

What type of entity is needed for a healthcare company in China?

Even though the healthcare sector in China is a little bit restrictive, this doesn’t mean that it is hard to open a company in the medical field. However, the proper business form is the joint venture where foreign investors must have local partners who need to hold 30% in equity. A share capital of at least RMB 20 million is needed for establishing a joint venture in the healthcare sector in China. Below you can find information about joint ventures in China:

  1. The partnership between the local and foreign investors needs to be sealed with the help of an agreement.
  2. In terms of equity, 30% can include intellectual property rights, medical equipment, liquidities and/or other assets.
  3. Just like in the case of any company, a board of managers needs to be appointed.
  4. The feasibility report is needed for establishing a joint venture in China.

The joint venture cannot be incorporated without the Articles of Association, a matter where our company formation specialists in China can help. Also, the same team can provide support for tax registration in China, licenses, and permits, plus the necessary approvals from the Ministry of Commerce.

What are the main steps for opening a healthcare company in China?

The registration of a company in the healthcare system in China might request assistance and support, especially considering the restrictive sector. Our team of company formation agents in China can give the needed guidance and can assist foreign investors in establishing their business in a fast and reliable manner. Here are a few important steps to consider for opening a healthcare business:

  1. Get in touch with a local partner and agree on the joint venture you need to establish.
  2. Obtain the necessary approvals from the Ministry of Commerce and Ministry of Health in China.
  3. Register for tax purposes and social contributions in China.
  4. Hire clinicians, doctors or pharmacists, depending on the business you wish to develop.

Business types in the healthcare system in China

Medical clinics, pharmacies, or medical supply companies can be excellent business choices for foreign entrepreneurs in China, considering the possibilities on the market. Even large corporations activating in the medical field can establish their operations in China, but the process might be complex. It is recommended to ask for the support of an experienced team of company formation agents in China and of a local lawyer who knows the legislation in this field. Also, our experts can help you open a WFOE in China.

Short facts about the healthcare system in China

Approximately 95% of the population in China has the basic healthcare insurance that covers approximately 70% of the medical expenses. Private and public medical institutions are part of the healthcare system in China, and the legislation allows international medical companies to have their operations in this country.  Numerous multinational companies dealing with the pharmaceutical sector or medical equipment benefit from the developed market and generate huge profits in the country. Below you can find information, facts, and data about the healthcare system in China:

  • there are more than 16,900 private hospitals in China, according to recent statistics;
  • the revenues in the private medical sector in China are expected to reach $90 billion by the end of 2019;
  • approximately 58% of the total number of hospitals in China are private clinics;
  • in China, doctors are allowed to work both in the public and the private medical sector.
  • foreign entrepreneurs have the possibility of investing in existing medical clinics in China.

Looking to incorporate a company in the healthcare system in China? We invite you to get in touch with our company formation specialists in China and ask for support, information, and assistance with the entitled authorities.