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Answers to the Big Questions that Investors Ask about China Company Incorporation

When the term “China” is mentioned, almost everyone will tell you that it is an emerging economic giant. In 2021, the Chinese GDP was 17.46 trillion US dollars, making it the second largest economy on the planet. The robust economic growth, which started in 1979, is expected to continue and make China the largest economy by 2030, according to the World Bank. Therefore, if you want your business, start-up, or idea to burgeon into a large multinational, it is time to consider China company incorporation. 

When considering registering companies in China, many are investors who have a lot of questions. Where do I start? What is the best company to form in China? Well, you do not have to worry about these anymore because we have all the answers. 

Keep reading to learn more and make the right decision about China company incorporation as we answer all the questions you might have. 

What Are the Main Types of Companies You Can Form in China?

To attract more investments, China allows foreigners to incorporate a wide range of companies. It is essential to check these companies carefully and ensure to only select the one that fits your goals. Here are the three most common forms of companies you can register in China.

  1. Wholly Foreign Owned Enterprise (WFOE): This is the most preferred type of company in China. As the name suggests, a WFOE is a type of company that allows foreigners to have 100% shareholding in their business. 
  2. Joint Ventures (JVs): Unlike WFOEs, joint ventures require you to enter into a partnership with a Chinese citizen. The Chinese partner should also hold the controlling shareholding in the company. Therefore, you will not have a lot of control over the running of the company. 
  3. Representative Office (RO): This type of company is considered an extension of another parent organisation registered back home. The main challenge of ROs is that they are not allowed to engage in profit-making deals. Therefore, they are mainly used for activities such as market surveys. 

What are the Main Steps Required for China Company Incorporation?

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We must say that incorporating a company in China is never easy. The main challenge is that creating a company requires lengthy documentation, and you have to deal with multiple departments. So, let us highlight some of these steps. 

  • Decide the preferred type of company to form in China. 
  • Pick a name and have it approved by the Ministry of Commerce (MofCom)
  • Select the scope of the company. 
  • Prepare all the documents, from articles of association to details of directors, which are required for company incorporation. 
  • Apply for an approval certificate. 
  • Apply for a business licence
  • Apply for additional permits, where necessary. 
  • Register with the tax bureau. 
  • Get company chops by registering with the Public Security Bureau (PSB).
  • Open a bank account.

Can You Register a Company in China with the Assistance of Experts?

Sure, you can. The Chinese Company Law allows investors to get the assistance of experts when registering their companies. When you identify the best professionals, they bring in the knowledge that you can count on to complete the process more conveniently. Here are other unique benefits of working with an agency of experts for company incorporation: 

  • The process of registering a company in China is completed faster. 
  • You are able to cut down the cost of company incorporation. 
  • Preparing the documents for China company incorporation and navigating between the different departments is made easy. 

One of the top agencies you can count on for smooth China company incorporation is Primasia. They have some of the best professionals, and you can count on them for company success. Furthermore, you can also use Primasia to help with other executive functions, such as payroll management, accounting, filing tax returns, and strategy formulation.

Aryan Dev
Internet trailblazer. Travel ninja. Social media evangelist. Incurable explorer. Subtly charming organizer. Tv scholar. Alcohol geek. Certified creator.

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