Despite the uncertainty looming over the Chinese economy today, statistics paste a completely different picture – a giant on the rise. When you combine this with the country’s manufacturing and big market, it becomes the ultimate jurisdiction to register your company.
In this post, we will tell you the step by step process of registering a China trading company.
Start by Selecting your Business Scope and Structure
Before you can start the registration process, you need to check against the China’s list of restricted industries so that you can pick the right structure. Further, you might want to look at the catalog of encouraged foreign businesses to see the incentives that you will get for operating in related niches.
Prepare the Required Documents
When you apply for company incorporation in China, the registry will assess the application based on the documents you provide. So, which documents are you supposed to provide:
- Articles of formation certified
- Two copies of every investor
- Bank references for every investor
- Photos of Chinese legal representatives together with their resume
- Business scope
- Registered capital
- Proposed names for the company
- Chinese office address
- Letter of authorization
If your company in China will be involved in manufacturing, you will also be required to include the following:
- Purpose and estimated investment
- Permission for land use
- Business plan
- Environment evaluation report
- The enterprise’s operational structure and number of those employed
- Size of production
- Environmental protection measures
- Details of products
- Detailed list of equipment used
- Requirement for the utilities such as water and electric usage
Apply for Your Business Approval
When opening a business in China, it is important to appreciate that you will need two different approvals: the State Administration of Industry and Commerce, and the Ministry of Commerce. Note that this approval is dependent on the scope of your business.
If there are issues, one of both approving entities might require you to make some changes. Further, if your business falls in the category of the encouraged sector, you will be required to seek further approval from the National Development and Reform Commission.
A Brief Note about Business Tax in China
One of the conspicuous things about China is that the country has a very straightforward tax regime.
This is aimed at helping businesses operating in China to plan well and grow rapidly. So here are the main taxes that your business will be subjected to:
- Corporate Income Tax
- Turnover tax
- VAT
- Individual income tax
Use an Agency for Help when Opening a Business in China
Taking a closer look at the process described in this post, it is pretty lengthy, right? But the good thing is that you can simplify it by working with experts in licensed agencies.
They have been in the market for years and have all the experience to make the process seamless. So do not simply look at the complexities of opening a business in China, work with professionals to simplify and complete the process faster.
As the Chinese market continues growing and changing over time, do not be left behind as others take advantage: take your business there too. You can never go wrong with the Chinese market.