Ways to creating your China business

Starting a company in China requires you to register your business in order for them to accept you as a foreign business entity. By strictly following the approach in registering a corporation in China, our company had successfully put up a company in the country. We did the whole process for nearly six months and finally, our efforts created good results. Our business in China is now blooming.

If you have a business and would like to extend it in China as a Wholly Foreign Owned Entity (WFOE), we are here to guide you. This article will help you learn more about the basic process of how to register a company in China.

First of all, it is important that your company reviews the Foreign Investment Industrial Guidance Catalogue of China. This catalogue was put up by the Chinese government to guide a foreign business in putting up company in China. Foreign companies or investors should be aware of the different sorts of industries which are classified into three categories and termed them as Encouraged, Restricted, and Prohibited. In order for your corporation to get easily approved, you have to fall under the "Encouraged" category.

The government of China will make it sure that your company is legal and valid so they will need something to trace you. Hence, you have to provide the necessary documents that will prove that you are a validly existing company in your home country as well as the evidence that you have adequate capital for your proposed company in China. If you are duly running as a company then it would not be difficult to get the following documents: 1. Articles of Incorporation, 2. National and Local company License, 3. Bank Letter, 4. Summary of business Activities All of these documents should be in Chinese. For easy documentation, we suggest to hire a Chinese translator or company consultant.

When you have already completed these documents, the next thing to do is to propose a company name in Chinese and obtain an application form from the Beijing Administration of Industry and Commerce (AIC). The application form requires that all shareholders sign in the application form. In applying for a company name, you will have two options. One is to directly apply to the AIC and submit the application form and the other is to submit the application form by fax, mail, or email. The latter process will need 15 days for approval while the former can be approved within the same day of submission of application.

The next step is to obtain a certificate of registration from the Beijing AIC. They will require you to submit the following documents: 1. Articles of Association, 2. Certificate of Company Name Approval, 3. Feasibility Study of your business in China, 4. Lease Contract, 5. A Comprehensive Summary of Personnel Salaries and Benefits.

After submitting all the necessary documents, wait for another 15 working days for the AIC to review your proposed WFOE. The AIC of China will trace and check your documents and eventually decides to approve or reject your business registration. If approved, your company can now apply for a company seal, open Chinese bank accounts, and register your company for state and local tax by the state taxation bureau.

When the approval process is ultimately done, you can duly initiate running your company. The approval process will take you two to six months depending on the size and scope of your WFOE. Gaining these adequate knowledge about the process of registering a business in China is essential to your company. This may take you a lof of effort, time, and money but the costs will be all worth it.