Over the past decade, China has emerged as the world's largest marketplace. To develop your business, start your company in China should definitely be a top priority on your 'To-do list'. Serious Strike provides company setup services in China for only $490. Contact us now and expand your business to over one billion people.
Why Serious Strike
Although start a business in China has become easier over the years, with the elimination of mandatory minimum capital injection requirements and a reduction in the number of licenses needed to begin operations, there are still many important considerations to be made.
At Serious Strike, we provide assistance at every stage, from selecting the right legal entity and tax status to handling post-setup procedures like opening bank accounts and obtaining special licenses. To expedite the process, we conduct pre-screening of all the required documents and application details, ensuring that you can obtain your business certificate as quickly as possible and focus on your business operations.
Types Of Business
Choosing the right business structure is of paramount importance to your business. The selection should be done according to a variety of factors including; nature of business activity, size of the investment, industry, and goals of the shareholders. Serious Strike provides advisory on selecting the right business structure best suited to your needs.
WFOE
A Wholly Foreign-Owned Enterprise (WFOE) is the most common legal entity type in China and is suitable for most forms of business ventures. According to the Catalogue of Industries for Guiding Foreign Investment, foreign investment in China falls into three categories: Encouraged, Restricted, and Prohibited.
Encouraged – Consulting, Manufacturing, Trading, etc.
Restricted – Telecommunications, Exploration of natural resources, Railway, etc.
Prohibited – Domestic freight, Tobacco, Radio & TV programs, etc.
Joint Venture
There are two forms of joint ventures in China: Equity joint ventures (EJV) and Co-operative Joint Ventures (CJV).
Equity Joint ventures are new legal entities with shared ownership between two or more parties who share risk and return equal to their share of ownership . They are a good option for partnerships where a local partner offers strategic advantages to the business venture in China. EJV’s can sometimes provide access to restricted industries as outlined by the Catalogue of Industries for Guiding Foreign Investment if a controlling share is owned by a local individual or company.
Co-operative Joint Ventures are new legal entities with shared ownership between two or more parties whose profits are distributed according to the terms of a contract – as opposed to the share of capital contribution – allowing for more structural flexibility over an equity joint venture.
Representative Office
A representative office (RO) is a liaising organization of a mother company located inside China or outside of China. Representative Offices are unique in the way that they cannot engage in “profit-making activity” or issue official VAT invoices (fapiao) to clients. Their use is often to establish a connection to China, rendering advice, displaying products and services, conduct research or liaise with business partners.
Branch Office
A branch office is an office belonging to another company in a different jurisdiction. It is not a separate legal entity, thus, it is limited to the scope of its main office but allows the business to expand geographically and hire local staff where a branch office is located. Branch offices must pay tax locally and comply with the regulations in the jurisdiction in which it is located.
Branch offices do not need to receive approval from the Ministry of Commerce and thus can be set up quicker than a conventional WFOE.
Process
Step 1: Pre-start preparation
Important: All businesses in China are required to designate a supervisor and responsible finance person certified by real name authentication. The supervisor and responsible finance person cannot also be the executive director or the legal representative. If required, Integra can act as your supervisor and designated finance person on the basis of a Know-Your-Client (KYC) relationship.
During the pre- start, we will help you select a Chinese name for your new business as well as draft all the necessary documents necessary for the application. Documents required vary depending on the legal entity type and the shareholders involved. We pre-screen all documents and application details to ensure you can get on with your business as quickly as possible.
Step 2: Application Process
Setting up a business happens in two phases. First, the business scope must be approved by the Ministry of Commerce and then the State Administration of Industry & Commerce issues the business license. From start to finish, starting a business in China takes roughly 5 weeks.
Note: Although the business is now set up, it cannot yet make or receive payment, hire employees, file its taxes, or issue VAT invoices (fapiaos).
Step 3: Post-start procedures
Once the business license has been obtained, Integra will help you complete the following procedures:
Carving the company seal (aka. Chop / Chomp)
Opening company bank account
Starting with the tax authorities
Starting with the social security bureau
Starting with the customs authorities (if applicable)
Obtaining special licenses (if applicable)
Application for an Alien Employment Permit (if applicable)
In addition to business setup, completing all of the necessary procedure above takes between 2-6 weeks, depending on the tax registration status and other factors. Once completed, the business can commence its operations, including; hiring employees, making and receiving payments, issuing invoices, etc.
Note: Special licenses and Alien Employment Permit can take more than 6 weeks to obtain.
Step 4: Monthly, Quarterly and Annual Compliance
All businesses in China are required to meet monthly, quarterly, and annual compliance requirements, regardless of if they had any turnover. Integra Group provides flexible bookkeeping and compliance services to help you meet all your compliance requirements.
Being committed to achieving 100% customer satisfaction rating, Serious Strike’s experience and expertise in IP services are always highly appraised by our clients.
What You Get
A 1-person private registration office with unique suite number
Advertise unbranded credible business address as your own
For representative office / joint venture / WOFE / foreign invested commercial enterprise set up purposes
Mail & Courier management
A multilingual professional team to delegate to
