Business Setup

BUSINESS SETUP

The consulting flowchart to establish a business in China

 

The consultation to establish a company or a local corporation in China

 

***We could provide the service of consulting.

 

The consultation related to the procedure to establish and budget in China

 

***We could provide the necessary information, such as the research of marketing, the decision of form to establish.

 

To decide to investment in Bangladesh and establish a company in China

 

***We could help you make a decision which form should be established

 

The registration of your corporation in China

 

***We could provide the service to establish and registrar a corporation in China.

 

The completion for establish a corporation in China

 

***We could introduce an office or company house by the real estate, which cooperated with our company.

 

The business forms to establish in China

 

1.Representative office

 

The possible forms of company when enter into China are the following.

 

1. Representative office

2. Branch

3. Limited Liability Company

 

① J Wholly owned company

② Joint venture

③ Corporation

 

1.Representative office

 

Representative office is considered as of Foreign Company’s subsidiary. The main purpose of such establishment is to gather information and to communicate, so sales activities through resident office is restricted in China.

 

2.Branch

 

Branch is a form of establishment that, with accordance of foreign law, foreign company established outside china establish operational center inside and register as subsidiary. In other words, the branch office located in china, but belongs to foreign company.

 

The updated corporate law in October, 2005 allowed foreign companies to establish branches inside China, However the reality is, with exception of foreign banks and insurance companies, it is still difficult for foreign companies to establish Chinese branches.

 

3. Limited Liability Company

 

The forms of company allowed to be established inside china are wholly owned company, joint venture, and cooperation companies.

 

①Wholly owned company

 

Wholly owned company is a company in China establish with 100% of capital belonging to foreign investor with unlimited liability.

 

Wholly owned company has been the well-used form for companies entering into China. Since there is no Chinese partner, the company enjoys freedom of management, On the other hand, there are number of regulations and limits, and the company cannot receive skills useful to run business in China.

 

②Joint venture

 

Joint venture is a form of company that foreign investor and Chinese investor establish with unlimited liability.

 

Business owners can take advantage of Chinese partner’s presence, such as Chinese market study, sales network, knowledge of labor and human resource, to running operations in China efficiently. On the other hand, sometimes difference of opinion reads to trouble between partners. Also the liquidation of such company requires unanimous vote of the company board, and hard to have all board members agree on it.

 

③Corporation

 

Corporation refers to, as a basis, a form of company where foreign company board sign contract with Chinese partner and decide their rights and responsibilities.

 

In general Chinese partner invest fixed assets such as land and buildings, and foreign partners invest equipment, skills, and so on. In such case foreign partners are allowed to correct advanced investment. The form had been used for non-manufacturing industries such as service sector, especially in hotel, golf yard, restaurant business and so on, but not so much nowadays.

 

The procedure to establish a business in China

 

【Establish Chinese/Foreign joint venture or Corporation】

 

When establishing Chinese/Foreign joint venture party proceeds in accordance with “Law of the People’s republic of China on Chinese-Foreign Joint Ventures” and relating bylaw “and “opinion on implementation relating to issues of law applying to examination permit and registration management for foreign investment companies ”.

 

When applying to form corporation Chinese partner submit following documents with foreign partner.

 

1.Application of establishing corporation

2.Financial statements report which Chinese partner and foreign partner prepared together, or project application report
3.Proof of representative or joint commission agent on whom all stockholders appoint.

4.Company`s agreement and the Articles of association
5.Investment inspection certificate issued by investment inspection organization established in accordance with law
6.when first investment is not in cash, submit proof of transferring property right(s) at the company’s establishment.
7.Certificate of qualification as a principal shareholder, or natural person’s identification (Required to notarize at notary agency of residing country, and authenticated by inland embassy of residing country.)

8.Documents containing names and addresses of company’s directors, auditors, and general managers, and certificate for the election or appointment.
9.Inauguration documents and identity card of the company`s legal representative

10.Prior examination confirmation notice for company name.

11.Company address proof

12.Authorized commission statement for legal document delivery.

13.Other documents that examination regulatory defines.

 

②After ratified by examination regulatory, applicant process registration of company at manufacturing and commerce bureau of residing ministry, region, and city of the company in accordance with approval certificate within 90 days form the day they receive the authorization certificate.

 

【establish foreign investment company】

 

When foreign company establishes wholly funded enterprise, they apply to institutions where state council identifies in accordance of People`s Republic of China Foreign Company law and administration instruction.

 

Foreign investors need to submit reports containing following information to local people`s government of where company is established in county level or above.

 

1.Company establishment application form

2. Financial statements report or project application report

3. Proof of representative or joint commission agent on whom all stockholders appoint.

4.Articles of incorporation

5.Investment inspection certificate issued by Investment inspection organization established in accordance with law.

6. When first investment is not in cash, submit proof of transferring property right(s) at the company’s establishment.

7. Certificate of qualification as a principal shareholder, or natural person’s identification (Required to notarize at notary agency of residing country, and authenticated by inland embassy of residing country.)

8.Documents containing names and addresses of company’s directors, auditors, and general managers, and certificate for the election or appointment.

9. Inauguration documents and identity card of the company`s legal representative

10. Prior examination confirmation notice for company name.

11.Proof of company address

12.Authorized commission statement for legal document delivery

13.Other documents that examination regulatory defines.

 

*If two or more foreign investors establish wholly owned company together, parties need to register a copy of the contract they entered into to an examining authority.

 

To learn more about our incorporation assistance and a range of services related to establish a business in China, please send us a message or call us at +81-3-5369-2930.

 

We work closely with you and carry out research to understand your needs and wishes.