The fintech industry gained lots of terrain in recent years in China, the country being placed on the third position in the top 5 international business destinations focused on this industry. Having a fintech company in China is in the attention of foreign entrepreneurs who want to thrive in this sector and to generate important profits. Those wanting support and assistance in opening a fintech company in China can get in touch with one of our company formation agents in China.
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Details about fintech companies
Fintech companies address to companies found in the financial sector and are meant to provide technological support and innovation, plus a multitude of solutions to sustain the business. Most of the fintech companies in China closely work with existing banks and other financial institutions and provide varied financial solutions for secure payments online and other important financial activities. It is important to know that a fintech company in China can activate under the rules of a Wholly Foreign-Owned Enterprise or WFOE in China, one of the most suitable business structures available. One of our company formation representatives in China can give more details and also support in this matter.
What are the activities of a fintech company in China?
Fintech companies in China can have different activities and can serve to varied financial institutions already established in the country. For instance, some fintech companies in China can have activities like:
- Different payment options offered as solutions for bank institutions in China.
- Digital money that can be used for online payments.
- Fintech companies can sustain crowdfunding firms established in China.
- Personal finance management for companies in China.
Fintech companies can have varied operations, depending on the business needs and particular niche they want to step in. Digital currency exchange, insurance technology market or varied investments and trading might proper options for international investors interested in opening fintech companies in China. In terms of formalities and company registration in China, you can address your inquiries to one of our company incorporation agents in China. They can handle the entire registration process of a fintech company in China.
What to consider when opening a fintech company in China
Even if the financial market in China is competitive, there is enough room for small and medium businesses and foreign investors who want to thrive in this sector. In most of the cases, the accessibility and the simplicity of the products offered might represent a great starting point for those interested in opening fintech companies in China. A successful fintech company is 100% related to the type of customers and their needs, so this aspect should be attentively measured when deciding to open this kind of company in China. More than that, entrepreneurs from overseas should consider the importance of having a software development team and specialists with relevant experience in the financial sector.
Discovering the product you wish to implement on the market is crucial when deciding for a fintech company and that because you can properly test the market, plan your budget and resources, and reveal the audience type.
Approvals for fintech companies in China
Once the business form is selected for opening a fintech company in China, one must obtain the approvals from the Ministry of Commerce and State Administration of Industry and Commerce. It is important to know that special licenses and permits for financial companies cannot be obtained from local institutions in China. This was a recently added measure in order for the authorities to prevent potential financial risks on the market.
We have gathered information and statistics about the fintech industry in China that you might find it interesting:
- approximately USD 1,274,662 million represented digital payments in China in 2018;
- digital payments summing up to around USD 1,570, 194 million were registered in 2019 in China;
- by 2022, transactions worth around USD 2,725,000 million are expected in China;
- experts consider that the fintech sector in China is in the early stages and will develop at a fast pace in the years to come.
Investors interested in opening fintech companies in China can get in touch with our company formation specialists in China and ask for complete support and assistance.