Do I Need a Lawyer to Incorporate?
No, a lawyer is not a legal requirement to incorporate.
You can use our service to incorporate to save your time and save money on lawyer fees. However, if you are unsure whether incorporation or which kind of businessvehicles will benefit your business, or if you need to have tax planning consultation, we suggest you to consult a lawyer or accountant for their professional advice.
What Should I Name My Company?
Choose the name of your companycarefully. It is very important that you portray the image you want for your new company. You are also requiredto avoid using any companyname which may be too similar to any existing companyor trademark.
A companyname must be in Chinese.
A proposed companyname cannot be the same as any of the existing name registeredat the local Industrial and Commercial Bureau.
How Many Directors/Shareholders Do I Need?
The followings are the requirementsto form and run a China company pursuant to the Companies Ordinance:
· At least one director.
· At least one shareholder. How many kinds of direct investment forms in China? The direct investment, which is widely adopted, includes Sino-foreign joint ventures, joint exploitation and exclusively foreign-owned enterprises, foreign-funded share-holding companies and joint development. The other means of investment includes compensation trade and processing and assembling. Can a representative office(RO) do businessas its parent company? It is of key importance to note that a representative office(RO) is not a separate legal entity. Rather, it is an extension of its parent company. A representative officemay only engage in non-profit making activities. It has the freedom to carry out the following functions: · Conduct research and survey for its parent company in the local market; · Liaise with local and foreign contacts in China on behalf of the parent; · Conduct research and provide data and promotional materialsto potential clients or trading partners; · Act as a coordinator for the parent company's activities in China; · Make travel arrangements for parent company representatives and potential Chinese clients; · Other non-direct profit making businessactivities. What are Foreign-fundedshare-holding companies in China? Foreign companies, enterprises, other economic organizations and individuals can form foreign funded share-holding companies in China with Chinese companies, enterprises, and other economic organizations. The total capital of the share-holding company is formed by equal shares ，shareholders will take due responsibilities for the company according to shares purchased; company will take responsibilities for all its debts through all its assets and the Chinese and foreign shareholders will hold the shares of the company. Among them, the shares purchased and held by foreign investors account for more than 25% of the total registeredcapital of the company. Limited company can be founded either by means of starting-up or raising, and the limited liability company invested by the foreigners can also apply to turn into share-holding companies. The qualified enterprises can also apply to issue A & B share and list abroad. Do I need do Annual Return every year after I registereda China company? Any limited companies should summit annual return to the relevant authorities. Any company will be subject be to a fine if the Annual Return is not submitted in a timely manner. What Documentsare requiredto register a Representative Office (RO) in China? The procedures for establishing a Representative Office (RO) vary slightly in different areas of China and the procedures also vary in accordance with the places where the foreign companies are located. However, the basic procedures are much the same. The documents requiredfor setting up a Representative Office (RO) are listed below: 1. The "establishment registration application form for resident representative offices of foreign (region) enterprises". 2. The approval document issued by the approval authority. 3. The photocopy of the legal businesscertificate and the original credit certificate of the foreign enterprise. 4. The appointment document of the (chief) representative of the resident representative office. 5. The articles of association and the member list of the board of director of the foreign (region) enterprise. 6. The articles of association and the member list of the board of director of the foreign (region) enterprise. 7. Other relevant documents and certificates. What Documentsare requiredto setting up The Wholly Foreign Owned Enterprise (WOFE) in China? 1. An original copy of application letter signed by the Chairman of the Board (in printed form with company chop). a project proposal and feasibility study report ( in print and under the company seal).
2. Original copies of the application paper and the resolution by the Chairman of the Board of the foreign investor (in printed form signed by members of the Board and with company chop).
3. An original copy of leasing agreement with chop of the Housing Department.
4. Directors name list of board or management institution name list, importing equipment list.
5. Copies of the businesslicenses or certificates of incorporation of the foreign investor (usually with the permission chop from the Industrial and Commercial Administrative Bureau).
6. An original copy of the corporate ratification paper (2 copies in duplicate).
7. Two original bank credibility letters for the foreign investors, stating a 7-digits bank balance, issued within 6 months in both English and Chinese language.
8. A copy of the approval paper for corporate formation and other papers for company alterations (the original are requiredfor check-up).
9. Notice of enterprise? |s name confirmation appraised by the Industry & Commerce Administrative Bureau.
10. Contracts and charter versions (signed by legal representative or Bailor).
11. An application form for company alteration;
12. A copy of the stub of corporate certificate of approval.
13. Whole set of materials for application of project establishment and approval documents (original) for project establishment. What is Advantages of registering a WOFE in China? 1. Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner. 2. Ability to formally carry on business rather than just a representative officefunction and capable of issuing invoices to their customers in RMB (Chinese Currency) and receive revenues in RMB. 3. Capable of converting RMB profits to US dollars for remittance to their parent company outside China 4. Protection of intellectual know-how and technology 5. Greater efficiency in its operations, management and future development. What are Sino-foreign joint ventures in China? Sino-foreign joint ventures are also known as share-holding corporations. They are formed in China with joint capitals by foreign companies, enterprises, other economic organizations and individuals with Chinese companies, enterprises, other economic organizations and individuals. The main feature is that the joint parties invest together, operate together, take risk according to the ratio of their capitals and take responsibility of losses and profits. The capitals from different parties are translated into the ratios of capitals, and in general the capital from foreign party should not be lower than 25%.
The Sino-foreign joint ventures are among the first forms of China's absorption of foreign direct investment and they account for the biggest part. At present they are still a great part in the absorption of foreign investments.
What is Cooperative business in China? Cooperative business is also called contractual cooperation businesses. They are formed in China with joint capitals or terms of cooperation by foreign companies, enterprises, other economic organizations and individuals with Chinese companies, enterprises, other economic organizations and individuals. The rights and obligations of different parties are embedded in the contract. To establish a cooperative business, the foreign party, generally speaking, supplies all or most of the capital while Chinese party supplies land, factory buildings, and useful facilities, and also some supply a certain amount of capital, too. | 
