Because of the complexity of China company start up, the country ranks a poor 83rd in the 2008 Doing Business Survey by the World Bank. Among criteria for which China ranks particularly poorly are i) the ease with which a company incorporation is achieved ii) the ease with which business licenses are obtained and iii) the ease with which taxes are paid.

Applications to start 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 start up.

China company start up procedures typically involve:

i) obtaining pre-approval of the company name at the local municipal bureau in the city where the company will maintain its office

ii) obtaining foreign investment approval from the Foreign Economic Relations & Trade Commission

iii) opening a preliminary bank account to accept paid-up registered capital

iv) obtaining a company registration certificate

v) obtaining approval to make a company seal

vi) obtaining the company code certificate

vii) registering with the Statistical Department in the city where the company will maintain its office

viii) registering with the Tax Bureau in the city where the company will maintain its office

ix) open a corporate bank account to conduct daily transactions

x) apply for the authorization to print or purchase financial invoices/receipts

xi) buy financial invoices and

xii) register with the Social Welfare Insurance Center in the city where the company will maintain its office.

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

Most Chinese businesses require a business license. A WOFE or FICE is typically granted a 30-year license. Sectors closed to foreign investment include defence, transportation and telecommunications.