How to Register a Business in China

The fundamentals involved in establishing a business are fairly standard worldwide. The methods of processing and regulation are where the countries differ. China is a leading world economy and has established an inviting business environment for foreigners to start new businesses or relocate their existing businesses to China. The first thing you will need is a solid business plan that will give all the details concerning your business and how you intend on operating it. There are a wealth of sample business plans on line that can be used as a reference for formatting. Once you have a solid business plan you will be ready to establish your company in China.

You'll Need:

• Business Plan
• Initial Contribution
• Business License
• Statistics/Tax Registration
• Social Welfare Insurance Registration

Suggestions

1. Acquire a notice of pre-approval for your company name. The local Administration of Industry and Commerce (AIC) requires you to fill out an application for your company name pre-approval. Applications can be picked up in person or downloaded from the AIC website. If an application is made in person, the name will be approved or reject on the spot. But if the application is mailed or faxed in, it will take up to 15 days to receive your rejection or approval.
2. Open a preliminary bank account. According to Chinese law, a new business must open a preliminary bank account and deposit an initial capital contribution in the amount of 20 percent of the proposed registered capital of the company. Once the contribution is deposited, it must be verified by a legally- established verification institute. The institute will issue a verification report verifying your initial contribution.
3. Acquire a registration certificate with the state AIC or its local equivalent. The registration certificate (also called a business license) is obtained by submitting a completed application along with the company name approval, office lease or proof of office, articles of association, initial contribution verification report and any other documents requested by the agency. A decision on approval will be rendered within 15 days after the application is submitted. Upon approval, you can have a company seal made after seeking permission from the police.
4. Obtain an organization code certificate. The Technology Supervision Bureau (TSB) will issue this certificate to your company. You must apply for the certificate within 30 days of receiving your business license.
5. Register with the Tax and local Statistics bureaus. Within thirty days of receiving your business license, your company must file a statistics registration with the local Statistics Bureau. The business license and organization code certificate are required for this filing. You must also register with the state and local tax bureaus. This must be done within 30 days of receiving the application for registration. Copies of all business documents will need to be submitted to the tax bureaus.
6. Open a formal bank account for your business. The procedures involved with the establishment of a bank account and transferring funds into the account vary depending on the banking institution. The local and state tax offices must grant authorization to your company to purchase or print financial invoices and receipts. Once approved, purchase uniform invoices for your company.
7. File for recruitment registration. Within thirty days of employing workers, your company must register with the local Career Service Center. Application forms are available on line. You will also have to register with the Social Welfare Insurance Center (SWIC) within the first 30 days for the payment of employee Social Insurance. You will need your company seal, business license and your organization code certificate to register with the SWIC. You are now ready to conduct business in China.

 

 

A Few Cautionary Tips

• Be sure to familiarize yourself with the history, customs, culture and people of China early on. There are many differences from life in China and life in the West.
• Make sure to seek permission to make your seal and purchase uniform invoices; China takes its regulatory measures seriously.

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