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 companypursuant 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 Chinaon 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 Chinawith 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.
