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Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in China

Register Company in ChinaFor a foreign investor or business owner that is either looking to expand their business overseas or simply begin a new business overseas, venturing into a new and unknown market can be a daunting challenge. Especially in a huge market like China.

Registering a company in China can be difficult if you are not familiar with the country’s legislation and authority requirements. And even more so if you’re trying to handle the entire process on your own from start to finish without any professional help. It can be quite a challenge indeed.

Why do businesses and investors look to registering a company in China? Because of the size of the market. It’s huge! Which means plenty of opportunities. But the disadvantage of opening in a market the size of China is the high competition your business is going to face.


What you need to know about registering a company in China

The good thing about setting up a business in a market as big as China is, you get a couple of options to choose from. For example, your options of business entities. Your choice of business entities to register a company in China will be one of the following:

  • A wholly-owned foreign enterprise
  • A contractual joint venture
  • An equity joint venture
  • A representative office
  • A local representation by a third party

Before venturing to register a business in China, you would first need to carefully define your business scope. It is imperative that this is done correctly, because the China National Development and Reform Commission may either prohibit or restrict, or encourage or permit your business set-up based on how clearly your business scope is defined.

Before registering a business in China, you would also need to select the right location. Remember, it is a massive market. Some areas have local preferential policies for foreign investors in terms of land leasing or procurement, staff recruitment, management and local tax just to name a few. Some businesses are also suited in certain locations more than others, so choose carefully based on the nature of your business.

The government also requires a certain minimum registered capital to be paid for various types of businesses. Your business structure will determine the amount of capital to be paid.

It is also important to full understand what an employer is responsible and liable for. Due diligence and credit checks on joint venture partners need to be conducted too before any type of business can be registered in China.


How to register a business in China

Although registering a business in China requires a lot more steps, a basic overview of the process that every investor would go through are as follows:

  1. Be informed about the requirements before drafting a business plan
  2. Pick the best location for the type of business you run
  3. Pick a business entity option
  4. Find a qualified consultant to help register the business
  5. Prepare all the required documentation and application forms
  6. Trademark your intellectual property

Open a bank business bank account

Register Company in China

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