To set up a foreign-invested company in China, there are seven critical points to consider. Each step is crucial in ensuring that your business complies with local regulations and is set up for success.

Foreign-invested company in China: how to setup

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To set up a foreign-invested company in China, there are seven critical points to consider. Equally important to mention, that each step is crucial in ensuring that your business complies with local regulations and is set up for success.

In this article, we list out the main information you need to know about this subject.

1. Who will be the shareholder?

The shareholders can be overseas companies or individual foreigners. Above all, this decision is fundamental, as it shapes the ownership structure of your company and has implications for tax and legal responsibilities.

Behind an office desk holding a small globe, a girl pointing to the Asian region, plants in the background and a laptop on the left side of the image. This image illustrates foreign-invested company in China

2. Who will take the role of legal representative?

This role, akin to a CEO, can be fulfilled by either a foreigner or a Chinese national. The legal representative is crucial as they will represent the company in all official situations, and sign legal papers, and commercial contracts. After all, the choice of legal representative is vital for the operational and legal standing of your business in China.

3. Who will be the supervisor in the foreign-invested company in China?

The supervisor represents the shareholder’s interests and oversees the company’s operations. Above all, this role is essential for maintaining accountability and ensuring that the company’s activities align with the shareholders’ expectations.

4. Where is the registration address?

You need to choose a city and rent a commercial or industrial place to register the company license. Equally important to say, that the location of your company in China can significantly impact your business, from local tax policies to market accessibility.

5. What’s the company’s Chinese name?

Only the Chinese name will be officially registered on the business license. The English name can be filed in other auxiliary documentation. This step is crucial as it involves not just translation, but also understanding cultural nuances and brand perception in the Chinese market.

6. What’s the business scope?

It can include trading, import & export, services, or manufacturing. Basically, you should specify products or service categories. Defining your business scope is vital, as it determines the activities your company is legally permitted to engage in within China.

7. How much is the registration capital foreign-invested company in China?

There is no minimum limit for the capital. You can choose a low amount or a higher one to initiate the business with sufficient funds. Accordingly, this flexibility allows businesses to start small and scale up as they grow.

Finally, it takes around one to two months to set up the company, complete all necessary registrations, and open bank accounts. However, the process, though complex, opens the door to the vast Chinese market.

At last, feel free to contact us for more details and guidance through this intricate yet rewarding journey of establishing your business in China.

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