There are more than 300 million farmers in China, and the country ranks first when it comes to worldwide farming, producing soybeans, cereals, potatoes, tea, cotton, fruits and many more. Opening a company in the agricultural sector in China might represent a profitable business in this country, and if you would like to know more about the registration process, we invite you to talk to one of our company formation specialists in China.
Table of Contents
How do I set up a company in the agriculture sector in China?
A wholly foreign-owned enterprise addresses to foreign entrepreneurs wanting to start a business in China, and therefore to those interested in opening a farm in China, for instance. Among the conditions for opening a WFOE in China (sometimes incorrectly WOFE), the following are the most important ones:
- CNY 30,000 is the minimum share capital for opening this kind of business structure.
- The Articles of Association are the WFOE’s main documents comprising information about the owners, the activities, the general rules in the firm, etc.
- The Trade Register though its local offices is in charge of company incorporation, including for agricultural businesses in China.
- It is recommended to make a name verification before starting the incorporation process of a WFOE in China.
- A feasibility report is needed and it is among the requirements for opening a WFOE in China.
All the requirements for establishing an agricultural business in China can be explained by our company formation specialists in China at any time. Feel free to ask for support in matters of company registration from our consultants and advice in terms of formalities with the authorities in charge.
Do I need a bank account for my company in China?
Yes, a WFOE in China requires a bank account for future financial operations in the company. In the case of foreign company owners, it is necessary to open two bank accounts: one for the foreign currency and one RMB bank account. The bank account in foreign currency will be used for international transactions and profit repatriation. Make sure you understand all the requirements in this matter and talk to one of our company formation representatives for more details and complete guidance.
Short facts about the agriculture sector in China
The northern part of China accounts for 65% of the country’s agricultural products, mostly corn and wheat. Another important agricultural area is the Yangtze River Delta, producing the 10th part of China’s crops and being home to more than 30 million inhabitants. Individual farmers found the excellent climate in this part of China and numerous sole traders take advantage of the excellent climate of the country. It is good to know that the state owns and controls the agricultural lands in China, providing lease contracts to local or foreign farmers in the country. According to the Property Law in China, lands can be rented for 30 years without for the owners to pay any agricultural taxes. They also have the right to sell, trade, subcontractor sublet the plots to third parties even if they don’t own them, also mentioning that they can engage in joint stock partnerships.
Types of businesses in the agriculture sector in China
Besides having a family farm in China and acting as a sole trader, entrepreneurs can think of business at a large scale. Providing agro-machinery for large companies, settling big farms for the production of vegetables, fruits, seeds, oils, cereals, condiments and more, or starting a business in the fishery sector might be some important business ideas for overseas entrepreneurs in China, in respect with the local legislation regarding special licenses and permits, company ownership & more. One might consider having a company that produces fertilizers and organic nourishments for small, medium and large farms found in China. In any case, the business opportunities in the agriculture sector in China are huge for both domestic and international business persons. Below you can find interesting details about the agriculture field in China:
- 35% of China’s workforce is registered in the agriculture field;
- there are more than 425 million workers in the agriculture sector in China;
- 100 million tons of food is expected to be produced in China by the end of 2030;
- 20% of the world’s consumption of corn is sustained by China.
Foreign entrepreneurs wanting to start a business in the agriculture sector in China are invited to get in touch with our team of company formation representatives in China for in-depth support, information, and guidance.