Different cities have different registration policies. Here we take Shenzhen as an example to introduce how do foreigners to register companies in China year 2021.
In order to expand international economic cooperation and technological exchanges, the People’s Republic of China allows foreign companies, enterprises and other economic organizations or individuals, on the principle of equality and mutual benefit and with the approval of the Chinese government, to jointly establish joint ventures with Chinese companies, enterprises or other economic organizations in China, also known as foreign-funded companies.
There are three forms of establishment:
1. Sino foreign joint ventures.
2. Sino foreign cooperation.
3. Wholly foreign-owned enterprises.
In Shenzhen, it is popular to register foreign-funded companies, but few knows it.
Let’s learn how to register foreign-funded companies.
Preparation for foreigners to register companies in China:
1. When registering a foreign-funded company in Shenzhen, the identity certificate of the shareholder shall be submitted, the notarized legal business certificate shall be submitted by the foreign enterprise, and the notarized passport shall be submitted by the foreign individual.
2. if a foreign company is to set up a board of supervisors, it needs three members. If it does not set up, it needs only one supervisor to be established. This person can be a foreigner or a Chinese mainland resident, and also need to submit his identification.
3. A foreign-funded company can also set up a board of directors. If it does not, it needs an executive director, it can be a foreigner or a mainland resident.
4. According to the provisions of the new company law, the registered foreign-funded company needs to make actual capital contribution. The foreign investor shall transfer the registered capital into the foreign exchange account of the foreign-funded company, and the professional accounting firm shall verify the capital and issue the capital verification report.
5. The business scope of a foreign-funded company must be clear, and its business scope cannot exceed.
6. If the registered address of the company is the business office address, it is necessary to provide copies of lease contract, invoice, real estate certificate, etc.
7. The articles of association shall be submitted to the administrative department for Industry and Commerce for the registration and establishment of the company.
8. When the company approves, it is necessary to submit a feasibility study report.
9. When the company carries out financial registration, it shall submit the information of a financial personnel, including a copy of ID card, a copy of accounting post and photos.
10. The company shall establish a legal person, which can be a shareholder or an employee.
What are the procedures for foreigners to register companies in China?
1. Name approval (required data: company name, registered capital, shareholder identity information, registered address and business scope)
2. The approval certificate for the establishment of a foreign-funded enterprise shall be submitted online of the Economic Promotion Bureau（ Required information: company name approval notice, registered capital, business scope, company feasibility report)
3. 7 working days after submitting the online materials, please submit the paper materials for the establishment of foreign-funded enterprises to the Economic Promotion Bureau on site, sign and wait for approval（ Required information: company name approval notice, business scope, feasibility report, articles of association, registered address lease certificate, credit certificate, original shareholder ID card or passport, power of attorney for legal document delivery, letter of commitment for safe production and operation, shareholders and legal persons need to be present and sign)
4. Make an appointment online at the Administration for Industry and Commerce for industrial and commercial registration
5. Get the approval certificate for the establishment of a foreign-funded enterprise, submit the paper materials for registration at the window of the Administration for Industry and commerce, and sign（ Required information: application for enterprise establishment registration, certificate of approval for the establishment of a foreign-funded enterprise, articles of association, shareholder ID card or passport,)
6. Get the business license (the operator and the company legal person shall bring the valid identity certificate to the window of the Administration for Industry and commerce to get the business license)
7. Record engraved seal（ Required information: original business license)
If the shareholder is a company, it is required to provide information: Certificate of company registration document, notarized copy and translation, company credit certificate and translation, financial statement and translation of the company for the previous year, business license, official seal, original ID card of legal person and supervisor, and lease contract of registered address.
Summary: major steps for foreigners to register companies in China:
- Find a reliable agent.
- Select a name of the company.
- Confirm business scope.
- Prepare required documents.
- Apply for approval certificates.
- Apply for business license (Key Point).
- Register with the Public Security Bureau (PSB)
- Register the Company at the Tax Bureau.
May you company be great and prosperous.