{"id":35820,"date":"2020-07-23T14:47:00","date_gmt":"2020-07-23T06:47:00","guid":{"rendered":"https:\/\/zegal.com\/?p=35820"},"modified":"2023-01-13T14:45:12","modified_gmt":"2023-01-13T06:45:12","slug":"company-incorporation-china","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-hk\/blog\/post\/company-incorporation-china\/","title":{"rendered":"Company Incorporation Step by Step: China"},"content":{"rendered":"\r\n<p>\u00a0<\/p>\r\n<figure id=\"attachment_36957\"  class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-36957\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/06\/li-yang-5h_dMuX_7RE-unsplash-1024x683.jpg\" alt=\"\" width=\"1024\" height=\"683\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/06\/li-yang-5h_dMuX_7RE-unsplash-1024x683.jpg 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/06\/li-yang-5h_dMuX_7RE-unsplash-300x200.jpg 300w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/06\/li-yang-5h_dMuX_7RE-unsplash-768x512.jpg 768w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/06\/li-yang-5h_dMuX_7RE-unsplash-1536x1024.jpg 1536w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/06\/li-yang-5h_dMuX_7RE-unsplash-2048x1365.jpg 2048w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/06\/li-yang-5h_dMuX_7RE-unsplash-640x427.jpg 640w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/06\/li-yang-5h_dMuX_7RE-unsplash-1200x800.jpg 1200w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/06\/li-yang-5h_dMuX_7RE-unsplash-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><figcaption class=\"wp-caption-text\">Photo by Li Yang on Unsplash<\/figcaption><\/figure>\r\n<p><span style=\"font-weight: 400;\">This article covers the main points on registering a company in China. Read on for details on China\u2019s requirements, procedures, and the estimated timeline to register a company.\u00a0<\/span><\/p>\r\n<p><a href=\"https:\/\/zegal.com\/company-secretary\/\">Zegal: FREE COMPANY INCORPORATION<\/a><\/p>\r\n<h4><b>Minimum Setup Requirements to Register a Company in China<\/b><\/h4>\r\n<p><span style=\"font-weight: 400;\">There are several different business structures to choose from in China when setting up a business. The process is a complicated and requires careful attention to the various steps.\u00a0<\/span><\/p>\r\n<ul>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Directors &#8211; 3 to 13\u00a0<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Chairman &#8211; 1<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Deputy Chairman &#8211; at least 1\u00a0<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Address of place of business\u00a0<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Legal Representative of Company\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h4><b>Registration Timeline\u00a0<\/b><\/h4>\r\n<p><span style=\"font-weight: 400;\">The entire process takes approximately <\/span><b>2-3 months<\/b><span style=\"font-weight: 400;\"> to complete as China requires comprehensive documents for the full application.\u00a0<\/span><\/p>\r\n<p><b>Step 1: Pre-register your Chinese Business Name\u00a0\u00a0<\/b><\/p>\r\n<p><span style=\"font-weight: 400;\">There are many businesses in China and it is therefore suggested to have in preparation at least 6 proposed business names when applying for the pre-registration process.\u00a0<\/span><\/p>\r\n<p>To get the company name, you should seek approval from the local district <strong>Administration of Industry and Commerce (AIC)<\/strong> to ensure that your name does not conflict with others in operation.<\/p>\r\n<p>Approval can take between two and fifteen days depending on where you want to open your business.<\/p>\r\n<p>Y<span style=\"font-weight: 400;\">ou will have to decide the official place of business, i.e. the district and official business address.<\/span><\/p>\r\n<h4><b>Step 2: Certificate of Approval\u00a0<\/b><\/h4>\r\n<p><span style=\"font-weight: 400;\">Once the business name has been registered, you must apply for the certificate of approval issued by the district-level AIC.\u00a0<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">As mentioned, it requires much documentation. Therefore, it is important to prepare beforehand in order for it to be as smooth and hassle-free as possible.\u00a0<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">The main documents required are:<\/span><\/p>\r\n<ul>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Approved business name<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A valid office address\u00a0<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Identification details of the company\u2019s legal representative<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Identification details of the company\u2019s supervisor\u00a0<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Description of business scope<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Shareholder information\u00a0<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Official notary documents of the shareholders\u00a0<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Articles of Association\u00a0<\/span><\/li>\r\n<li><span style=\"font-weight: 400;\">Amount of registered capital and total investment<\/span><\/li>\r\n<li style=\"font-weight: 400;\">A feasibility study. This is to prove to the authorities that the company is feasible and needs to include a comprehensive business plan and a budget.\u00a0<\/li>\r\n<\/ul>\r\n<p><span style=\"font-weight: 400;\">All of the above documents must be prepared beforehand to be submitted in order to receive the Certificate of Approval.\u00a0<\/span><\/p>\r\n<h4><b>Step 3: Obtain Business Licenses\u00a0<\/b><\/h4>\r\n<p><span style=\"font-weight: 400;\">This is the most important step in incorporating your company. This step has also been streamlined to a one-stop, \u201c5-in-1\u201d registration application process. This application when approved by the district-level AIC, will issue out 5 business licenses which basically bring your company into official existence. You should prepare the same documents as in Step 2 as the AIC might call for selected documents depending on the type and scope of your business.<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">The licenses issued are:<\/span><\/p>\r\n<ul>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Business License\u00a0<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Organisation Code\/ Organisation Registration Certificate<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tax Registration Certificate<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Social Security Registration Certificate<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Statistical Registration Certificate<\/span><\/li>\r\n<\/ul>\r\n<p><b>Step 4: Creating your Company Stamp<\/b><\/p>\r\n<p><span style=\"font-weight: 400;\">After obtaining the licenses, it is crucial to also have an official company stamp created. The company stamp will be used on all official documentation. In order to register for a company stamp, several documents like certificate of approval and business licenses need to be prepared.\u00a0<\/span><\/p>\r\n<p><b>Accounting<\/b><\/p>\r\n<p><span style=\"font-weight: 400;\">All financial statements and business tax returns must be filed monthly in the Chinese language. All companies must submit the annual report from the year before to the State Administration for Market Regulation (SAMR). The period to do so is from 1st January to 30th June.<\/span><\/p>\r\n<h5><b><\/b><b>Corporate Tax Requirements<\/b><\/h5>\r\n<p><span style=\"font-weight: 400;\">China\u2019s tax structure for companies depends on the type of business activities. On average, the standard tax rate is 25% but if it qualifies under the China government business scheme, it can be reduced to 15%.<\/span><\/p>\r\n<h5><b>Annual General Meeting<\/b><\/h5>\r\n<p><span style=\"font-weight: 400;\">All China-registered companies must hold their Annual General Meeting for each financial year. The period it should be held depends according to the type of company structure it adopts.\u00a0<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">For private companies or companies limited by guarantee, it must be held within 9 months after the end of its accounting year.<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">For any other company falling outside of the above category, it must be held within 6 months after the end of its accounting year.\u00a0<\/span><\/p>\r\n<p style=\"text-align: center;\"><b><i>This article does not constitute legal advice.<\/i><\/b><\/p>\r\n<p style=\"text-align: center;\"><i><span style=\"font-weight: 400;\">The opinions expressed in the column above represent the author\u2019s own.<\/span><\/i><\/p>\r\n<p style=\"text-align: center;\"><a href=\"https:\/\/register.zegal.com\/\"><b>Start managing your legal needs with Zegal today<\/b><\/a><\/p>\r\n<p>MORE IN THIS SERIES: Company Incorporation: <a href=\"https:\/\/zegal.com\/blog\/post\/how-to-start-a-business-in-hong-kong\/\">Hong Kong<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-singapore\/\">Singapore<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-japan\">Japan<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-new-zealand\/\">New Zealand<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-australia\/\">Australia<\/a>,<a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-taiwan\/\">Taiwan, <\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-macau\/\">Macau<\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-singapore\/\">, <\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-china\/\">China<\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-singapore\/\">, <\/a><a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-philippines\/\">Philippines<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/incorporation-british-virgin-islands\/\">BVI<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-vietnam\/\">Vietnam<\/a>,<a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-thailand\">Thailand<\/a>,<a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-indonesia\/\">\u00a0Indonesia<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-step-by-step-cayman-islands\/\">Cayman Islands<\/a>, <a href=\"https:\/\/zegal.com\/blog\/post\/company-incorporation-united-kingdom\">United Kingdom<\/a><\/p>\r\n<p><a href=\"https:\/\/zegal.com\/legalguide\/incorporate-your-business\/\"><span style=\"font-weight: 400;\">READ MORE: Documents required when incorporating your business<\/span><\/a><\/p>\r\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/incorporation-british-virgin-islands\/\">FURTHER READING: COMPANY INCORPORATION STEP-BY-STEP: BVI<\/a><\/p>\r\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":96,"featured_media":36957,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[14278,133],"tags":[10882,25,10307],"usecases":[13716],"businesstypes":[],"country":[],"class_list":["post-35820","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-management","category-startup","tag-china","tag-company-incorporation","tag-z-syndicate","usecases-set-up-a-shareholders-agreement"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Company Incorporation Step by Step: China | Zegal Hong Kong<\/title>\n<meta name=\"description\" content=\"There are many documents required for setting up a company in China and it&#039;s a time-consuming undertaking. 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