China company set up is challenging and confusing for most international entrepreneurs. Most investors engage the services of a professional Firm who handle all China incorporation formalities, including i) liaising with provincial government departments to obtain foreign investment approval ii) arranging for documents to be translated into Chinese and iii) completing application forms on behalf of the investor. In summary it is difficult for a foreign entrepreneur to efficiently complete China company set up without assistance on the ground. The following is an overview of the difficulties of and procedures relating to China company set up:

Applications to set up a 100% foreign-owned company in China are filed with the Foreign Economic Relations & Trade Commission in the city or province where the investor wishes to set up.

China company set up procedures typically evolve with:

i) Pre-approval of the business name is obtained at the local municipal bureau in the city where the business will maintain a physical premises;

ii) Obtaining foreign investment approval from the provincial Foreign Economic Relations & Trade Commission;

iii) Opening a bank account in the intended business name to accept paid-up registered capital;

iv) Obtaining a Certificate of Registration for the business;

v) Obtaining approval to make a company seal;

vi) Obtaining the company code certificate;

vii) Registering the business with the Statistical Department in the city where it will open its physical office premises;

viii) Registering the business with the Tax Bureau in the city where it will open its physical office premises;

ix) Open a corporate bank account to conduct daily transactions;

x) Apply for authorization to print or purchase financial invoices/receipts;

xii) Buy financial invoices; and

xiii) Register with the Social Welfare Insurance Center in the city where the business will open its physical office premises.

Between four months and six months later, the provincial government issues a business license.

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