How to Register Your Company in China Fast

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Business

Published on: 23 June 2020 Last Updated on: 30 October 2024
Company in China

Setting up a company in China, possibly a WFOE is one of the best ways of entering a rapidly growing market, which is driven by rapid manufacturing, world-class infrastructure, stable government, and global market reach.

To take advantage of this high-potential investment hub, you need to make the first and most important step of registering a company in China. So, how do you go about it?

Why China? Why Open a Company in China?

As an entrepreneur, the primary goal of starting a business is to see it grow and become a big multinational, but that is only possible with the right platform.

This is what makes China stand out from its peers. Everything in China is geared towards making your business succeed. Here are other benefits of expanding your business to China.

  • A large market for your products: One of the factors that you need to get right when determining the place to locate your offshore business is the market size. With a population of more than one billion, investors can rest assured of the great demand for their products.
  • China is the gateway to the Far East and globally too: In addition to the huge local market, China is also strategically positioned, and you can easily access the neighboring Asia markets, including Malaysia, Singapore, India, and Japan.
  • Many areas that you can invest in: There is nowhere else where investment opportunities are as diverse as in China. Although most entrepreneurs are going into manufacturing, you can also invest in agriculture, hospitality, and telecoms, among other areas.
  • Well-developed infrastructure: Whether you are in industrial processing or services sectors, you want an investment hub with well-developed infrastructure that can easily move raw materials, finished products, and labor. In China, both rail and road networks are world-class, allowing you to cut production costs and enhance the efficiency of your enterprise.

How to Register a Company in China

Now that you know the special benefits of registering a business in China, it is important to appreciate that a business can take several forms, including branch office, joint venture, or a wholly-foreign-owned enterprise (WFOE).

However, it is the WFOEs that are more popular because they provide you with full control over your enterprise. To register a WFOE, here are the main steps to follow:

  1. Select the business scope.
  2. Identify the preferred location.
  3. Pick the right business formation.
  4. Create a business plan.
  5. Submit the company name for pre-registration.
  6. Acquire a Letter of Approval from the Ministry of Commerce.
  7. Sort all the documents, including a pre-registered Chinese brand, the company’s legal address, articles of association, registered capital, and feasibility study.
  8. Register your businesses with the Public Safety Bureau.
  9. Open your company bank account and register with the tax bureau.

Every year, China is emerging as the business hub of choice for investors, and you should not be left behind in taking advantage of this high potential jurisdiction. Remember to follow the process of registration carefully, ensuring to get all the required approvals and documentation. When it comes to business, you cannot go wrong with China.

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