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Open a Hotel in China

Open a Hotel in China

Setting up a hotel in China means taking advantage of a highly developed industry that generates billions of dollars each year. First of all, it is recommended to choose the business form through which the hotel will operate in China, and in most cases, joint ventures and wholly foreign-owned enterprises (WFOEs) are ideal structures preferred and chosen by international businessmen. The support offered by our team of company formation agents in China is at your service if you would like to open a hotel in China, so make sure you send your complete inquiries to our team.

How do I set up a hotel in China?

The wholly foreign-owned enterprise in China or WFOE as it is known can be the ideal business structure for opening a hotel in China. The formalities of this entity can be explained by one of our company formation specialists in China, and below you can find a few of the requirements for opening a WFOE in China:

  • the registration of a WFOE in China starts with drafting the Articles of Association with details about the owners, the business, the activities, etc.;
  • the business name verification and reservation are mandatory conditions;
  • RMB 30,000 is the minimum share capital for a WFOE in China;
  • a feasibility report is needed prior to the company’s incorporation in China;
  • the registration for tax purposes and social contributions is made at the time the Certificate of Incorporation is issued.

Some requirements might seem complex for foreigners dealing for the first time with the business conditions in China, so the support and assistance of a company formation agent in China will prove extremely helpful.

Establishing a joint venture in China

A joint venture in China is a legal business form accepted in many sectors in China. The registration is made just like for any kind of entity in China, mentioning that a partnership agreement is needed. Local and foreign investors can establish joint ventures in China, in order to open a hotel in China, once the terms, conditions, and activities of the firm are accepted by both parties involved in the business. If you choose this business structure and if you need support with the formalities involved, do not hesitate to solicit our assistance.

Are you interested in WFOE in China? This business structure is very popular among foreign investors who want to expand their business in this country. The process of establishing it can take around 3 months, during which we will help you with the preparation of the required documents, the opening of the necessary bank account, the establishment of general internal rules in the firm, and the registration for the payment of taxes. Our specialists can provide you with a registered address for your company.

Opening a hotel or investing in an existing one?

Investors have the possibility of opening a hotel from scratch and respecting the conditions for obtaining the needed licenses and permits or making investments in an existing hotel or accommodation in China. Some requirements for opening a hotel in china might be time-consuming, so the decision of buying a hotel instead of projecting one is quite normal for foreign investors wanting to start a business in a fast manner. 

How long does it take to obtain the construction permit in Shanghai?

Small-scale projects might be subject to approximately 20 days until the construction permit is issued in Shanghai, an important city in China. As for other private projects like hotels established by foreigners in Shanghai, the issuance of the construction permit might prolong up to 28 days. The process comprises a few important steps:

  1. The construction projects of the future hotel need to be uploaded to the Department of Urban Planning in Shanghai.
  2. The local authorities in Shanghai must review the construction plans.
  3. The Department of Urban Planning in Shanghai issues the planning permit.
  4. The building permit is issued by the Department of Construction Management in Shanghai.

Once the process is concluded, the constructor will receive the Certificate of Construction Project Planning Permit, the Certificate of Joint Review and the Certificate of Building Permit, all needed for opening a hotel in Shanghai.

The construction sector in China

The construction sector in China continues to thrive and to have a huge impact on the country’s economy. The railway construction sector participates to the development of international businesses in a large percentage, alongside the tourism sector which is extremely appealing to overseas investors. We have gathered information about China’s investment and business direction that you might find it useful:

  1. USD 139,043 was the FDI inward flow registered in China in 2018.
  2. The interest for Greenfield Investments grew in recent years, about 871 projects being registered in 2018.
  3. The “2019 Doing Business” ranks China 46th out of 190 worldwide economies.
  4. China’s internal market serves to approximately 1.3 million customers.

Foreign investors interested in opening a hotel in China can get in touch with our company formation agents in China and request complete support, information and assistance. We can help foreign entrepreneurs in starting a business in China.