China - Start a Business

Advertisement

Procedure

• Do your homework.
  • Make sure you're informed about the state of the industry you're in. A lot of this research can take place from your own home.
• Pick a location.
  • You can't set your business down just anywhere and expect to be a success.
• Choose an entity status
  • Before you register with the government, you need to decide what type of business entity to register.
• Develop a business plan.
  • A detailed five-year business plan is crucial, because once the government approves it, you will be able to operate only within its guidelines.
• Find a liaison.
  • No matter how informed you are, you won't get very far without consulting a representative to register your business.
  • A qualified liaison should be able to tell you where you need to go to register, whether it's the local, provincial or national government
• Organize the necessary documents.
• Apply for registration certification "business license of enterprise legal person" with SAIC, the organization code certificate issued by the Quality and Technology **Supervision Bureau and registration for both state and local tax with the tax bureau
• Trademark your intellectual property.
• Find a bank.
  • This part should be quick and easy, since there are plenty of banks with a huge presence in China.
• Apply for the authorization to print or purchase financial invoices/receipts.
• Purchase uniform invoices
  • The company must obtain and submit an application form to purchase uniform invoices
• File for recruitment registration with local career service center
  • Within 30 days of recruiting employees, a new company must register with the local career service center, sponsored by the local government.
• Register with Social Welfare Insurance Center
  • Within 30 days of establishment, the company must register for the payment of employee social insurance with the local social insurance office

Advertisement

Required Documents

• Notice of approval of company name
• Lease or other proof of company office.
• Capital verification certificate or appraisal report
• Articles of association, executed by each shareholder
• Representation authorization
• Identity cards of shareholders and identification documents of officers
• Appointment documents and identification documents (certifying name and address) of the directors, supervisors, and officers.
• Appointment documents and identification documents of the companys legal representative
• If the initial contribution is in nonmonetary assets, the document certifying transfers of the property title of such assets
• Other documents as required by the authorities

Office Locations & Contacts

Shenzhen & South China Office:
6009 Yi Tian Road, Suite 2306,
New World Tower,Shenzhen 518035
Tel: (86-755) 6128.6800 (You can inquire in English, Cantonese and Chinese)
Mobile: (86) 136.8649.3886
E-mail: [email protected]

The People's Bank of China (PBC)
Addr: No.32 Chengfang street,Xi Cheng district,
Beijing,China PostCode:100800
Tel:86-010-66194114
E-mail:[email protected]

Path To China (PtC), Southern China Offices:
PtC GUANGZHOU
161 West Lin He Rd., 23F
Tower A, Center Plaza,
Guangzhou, 510620
Request For Proposal-
Tel: (86.20) 6113.5690

OCRA (China) Limited
Room 3003, Wheelock Square
1717 Nan Jing Road West
Shanghai , 200040

PR China
Tel: +86 21 6288 2288
Fax: +86 21 6288 2138
Email: [email protected]

National Police Agency,
Ministry of the Interior, Republic of China(Taiwan)
Address:No.7, Sec. 1, Jhongsiao E. Rd.,
Jhongjheng District, Taipei City 10058, Taiwan (R.O.C.)
Service TEL?02-23219011

Quality and Technical Supervision Bureau
Phone: (8610) 88050813
Fax: (8610) 63070900
http://www.gov.cn/english/2005-11/02/content_89805.htm

People's Republic of China Ministry of Commerce Investment Promotion Agency
Phone: (010) 64404550
Fax: (010) 64515317
E-mail: [email protected]

Eligibility

Businessmen desiring to start a business in China.

Fees

CNY 30,000

Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

http://www.pathtochina.com/sample/lease_contract.pdf
http://www.pathtochina.com/sample/Annual_Report_Sample_05-06.pdf

Processing Time

Please explain processing time taken in obtaining the document/certificate.

Related Videos

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites.
Please remove the "&" inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M". 
	

Instructions

Before starting up a business in China, you have to know what the options are. Foreign Investors generally establish a business presence in China in one of five ways:

• Wholly Foreign Owned Enterprise (WFOE);
• Partnership Enterprise (PE)
• Representative Office;
• Joint Venture;
• Hong Kong company

Required Information

• Purpose and estimated investment
• WFOE's operational structure and number of employees
• Permission for land use, environment evaluation report
• Products, size of production, detailed list of equipment, and business plan
• Environmental protection measures
• Requirement for utilities such as power and water supply
• The latest annual audit report copy from the parent company
• Letter of Authorization
• Passport copy
• Certificate of Incorporations, Articles of Formation or Equivalent document
• Bank Reference Letters from investors bank

Need for the Document

China can be an overwhelming location to consider establishing a business. China is the most successful communist country on the planet and consistently ranks as the sixth largest economy.

Information which might help

It is customary in China to pay rent one year in advance and this must be taken into account in planning a budget because the governmental authorities will be expecting this.

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

http://www.examinechina.com/resources/the-types-of-business-presence-in-china
http://www.doingbusiness.org/data/exploreeconomies/china/starting-a-business
http://www.saic.gov.cn/english/

Others

If you start offering a product or service that is not in your business plan, the Chinese government can shut your business down. The same goes for where and how you operate.