With China’s accession to the World Trade Organization (WTO), its role as a manufacturing base and consumer market has increasingly attracted the attention of foreign investors. However, due to political and cultural factors, China is still perceived by most investors as a country where opportunities and risks coexist.
To support investors’ expansion needs, Esin Group has established an office in China, gaining a deep understanding of China’s policies, economy, and taxation system. Through our China advisory team, we provide implementable advice to investors, naturally minimizing future corporate risks.
To protect social welfare, companies established in China are required to make monthly contributions to social insurance and employee housing funds. These payments are typically calculated as a percentage of the employee’s monthly salary and shared between the employer and employee. Given the differences in living standards across cities, contribution rates vary according to local conditions.
As an international business services organization, Esin Group offers comprehensive solutions for registering and operating Chinese companies, safeguarding your business’s growth in China.
Complete Guide to Registering a Company in China:
Types of Company Registration in China
- Companies can be categorized into five types based on the varying liability borne by shareholders:
– Unlimited liability companies, where all shareholders are jointly and severally liable for the company’s debts, regardless of their capital contributions;
– Limited liability companies, where all shareholders are liable for the company’s debts only up to the amount of their capital contributions;
– Limited liability partnerships, which consist of partners with unlimited liability and partners with limited liability;
– Stock companies, where all capital is divided into shares of equal value, with all shareholders liable for the company’s debts only up to the value of their shares;
– Limited liability and share partnerships, which consist of shareholders with unlimited liability and shareholders with limited liability. This classification represents the most basic categorization of companies. - Companies can be classified based on nationality as domestic companies, foreign companies, and multinational companies.
- Companies can be classified based on their position in the controlling-controlled relationship as parent companies and subsidiaries.
- Companies can be classified based on their position in the regulating-regulated relationship as headquarters and branches.
- Based on the basis of corporate credit, a company whose operation depends on the personal credit of the shareholders rather than the scale of corporate capital is called a partnership, such as an unlimited liability partnership; a company whose operation is based on the scale of corporate capital is called a capital company, with a stock company as a typical example; a company whose establishment and operation depend on both the personal credit of the shareholders and the scale of corporate capital includes a limited partnership.
Company Registration Procedures in China
The company registration process is as follows:
Name verification (confirming the company name) → Opening a capital verification account → Capital verification (completing the company’s registered capital verification procedure) → Signing (the client visits the Office of Industry and Trade to verify the signature) → Submitting a Business License application → Submitting an Organization Code Certificate application → Submitting a Tax Registration Certificate application → Opening a basic bank account and tax payment account → Registering a tax category → Obtaining a tax category assessment → Completing stamp duty procedures → Obtaining taxpayer status → Appointing a tax officer → Completing invoice subscription procedures.
List of Documents Required for Company Registration in China
- Company name (five or more proposed names)
- Property ownership certificate for the registered address and a photocopy of the owner’s identity document (for company-owned properties, a photocopy of the property ownership certificate and lease agreement must be accompanied by the official stamp of the property owner; for residential properties in the High-Tech Zone, Economic Development Zone, or Xinzhan District, the original property ownership certificate must be submitted to the Administration of Industry and Commerce for verification)
- Original identity documents of all shareholders (if the capital is paid in by the client himself, a copy is sufficient; if the legal representative is a non-local resident registering in the Xinzhan District, Economic Development Zone, or High-Tech Zone, the original temporary residence permit is required)
- Share ownership ratio of all shareholders (structuring the shareholders’ shareholdings in the company)
- Scope of company activities (main business activities; some scopes may require obtaining qualifications or licenses)