Procedure of company registration

The procedure of registering a company in China is often complicated however Foreign investors are not allowed to directly submit the application documents in order to register a WFOE to the relevant authorities in China. They must retain a PRC Entity to submit all documentations and co-ordinate the process. Eltoma will manage this process on your behalf ensuring you are kept informed every step of the way.

Registering a Wholly Foreign Owned Enterprise:

The procedure for registering a WFOE can be divided into three distinct phases; the approval phase, registration phase and post establishment phase. Below is a brief summary of the process and what documents may be required:

In the first instance it must be determined if the proposed WFOE will conduct business that will be approved by the Chinese Government. If it is deemed that the business is likely to be accepted then the following documentation is required:

  • Certificate of Registration, or equivalent, certified by the Chinese Embassy or Consulate
  • Passport copy certified by Chinese Embassy or Consulate
  • Bank reference letter
  • If applicable; passport copy of director of parent company, Legal Representative of China Company, Supervisor of China Company
  • Business Scope – One of the most important documents required as a WFOE can only conduct business as defined in the business scope which ultimately appears on the Business License.
  • Registered capital and list of proposed names of China Company

If the above documentation is in order and the Chinese Government approves the business scope then the process of incorporation can begin. The following documents are required in order to incorporate:

  • Articles of Association – including details of the management and capitalization of the company
  • Feasibility Study – including Year 1 Business Plan and Budget
  • Leases – Office rental agreement / factory lease etc
  • Proposed personnel costs
  • Any other documents associated to the specific company

The time frame for incorporation depends on the complexity of the business and the negotiations required. However, Eltoma will guide you through the process providing an informative, smooth and efficient service.

The Opening of a Representative Office:

The opening of a Representative Office in China can provide many opportunities. The summary of the process of establishing a Representative Office is laid out below:

Depending on the type of business that the Representative Office is proposing to represent the Chinese Government will need to provide approval. Once this has been granted the following documents are required:

  • An application letter signed by the Chairman of the Board
  • Registering documents of head office
  • Original bank reference letter regarding the company’s financial standing
  • A letter appointing the Chief Representative to the Representative Office plus CV
  • A copy of the lease agreement for office space

Once approval has been granted and an Approval Permit issued then the foreign investor must apply to the State Administration for Industry and Commerce. If the application is approved then an approval permit is usually issued within one month.

Registering a Joint Venture Company:

Setting up a Joint Venture can be a complicated and lengthy process and the documentation and timescale is dependent on the type of Joint Venture being formed. Each case is assessed on an individual basis. Eltoma can manage this process negotiating the complex procedure and keeping you informed every step of the way.

Hong Kong Company:

For details regarding the incorporation of a Hong Kong Company please see the pages opposite. Eltoma can advise whether it is advantageous and efficient to register a company in Hong Kong in order to fulfill your Chinese ambitions.

Take the next step, we are here to help.

Register a China company.
Open a China bank account.

  Resources:

Notional Interest Deduction: A Useful Tool for Cyprus Companies

Notional Interest Deduction: A Useful Tool for Cyprus Companies

The corporate income tax rate of a Cyprus-resident company is 12.5% on its global taxable revenue, with unilateral credit for related foreign tax suffered. Moreover, non-Cyprus residents are not liable to pay Cyprus withholding taxes on payments. Frequently, the effective corporate tax rate is much lower, or even as low as nil, due to various tax exemptions and allowances.

How Cyprus is Retaining its Competitive Edge as a Favourable EU Jurisdiction for Tax Purposes

How Cyprus is Retaining its Competitive Edge as a Favourable EU Jurisdiction for Tax Purposes

The recent implementation and increasingly stringent tax developments globally can affect companies with offices in different countries; rendering them non-viable if certain factors are not carefully considered.

The Legal Consequences of the Unlawful Transfer of Personal Client Data to Third Parties: UK Case Study

The Legal Consequences of the Unlawful Transfer of Personal Client Data to Third Parties: UK Case Study

As per English common law, banks are liable to both criminal and civil proceedings. According to the case of Bank of Scotland v A, banks have an ability to choose between criminal and civil liability in litigation with their customer. Nevertheless, ‘the last bit’ of this choice has to be decided by the court.

Dormant Companies: A Definition by the Cyprus Inland Revenue Dept

Dormant Companies: A Definition by the Cyprus Inland Revenue Dept

Following Circulars No.2011/11 and No.2011/5, this article will explain what a "dormant company" is, its symptoms and consequent requirements. The following is an extract from PART 1.7 of the "Company Income Statement" form (EP 4), whereby a definition of a dormant company is considered to be a company that meets the following conditions:

How to Effectively Use Software to Improve the Purchasing Process Within your Company

How to Effectively Use Software to Improve the Purchasing Process Within your Company

Companies all over the world rely on controls over expenditure at the point of logging a supplier invoice or receipt, which over time can cause difficulties in producing timely and reliable account management.

Information Security & Factors that Contribute to Data Leakage in the Ukrainian & UK Banking Sector

Information Security & Factors that Contribute to Data Leakage in the Ukrainian & UK Banking Sector

One of the most important regulatory banking documents on information security is the Regulation on bank secrecy and confidential information, which exists in every bank. This document entered into legal force by the banking sector’s order.

Troika Lenders Visit Cyprus Following Withdrawal From Bailout Programme

Troika Lenders Visit Cyprus Following Withdrawal From Bailout Programme

Representatives from the troika of Cyprus’ international lenders, the International Monetary Fund, European Commission and the European Central Bank, recently visited Cyprus for conducting their 4th post-scheme investigation following the islands recent withdrawal from the economic adjustment programme as agreed with the terms of the bailout.

The EC's Plans to Reduce NPLs in Europe May be Beneficial for Cyprus

The EC's Plans to Reduce NPLs in Europe May be Beneficial for Cyprus

Last month, the European Commission proposed an ambitious and comprehensive package of measures to tackle non-performing loans (NPLs) in Europe, making the most out of the promising progress already made in reducing risks in the banking sector.