Among several types of foreigners' investment in China, the wholly-owned enterprise is a main kind. If you have done a very mature investigation on China' s market and made your decision to set up another company in China, the following basic steps will be useful to you.
Among several types of foreigners' investment in China, the wholly-owned enterprise is a main kind. If you have done a very mature investigation on China’s market and made your decision to set up another company in China, the following basic steps will be useful to you.
Step 1 Reserving a name
Before going to the relevant authorities for your registration, you should first reserve a name for the company with the SAIC. There are four rules for your company’s new name.
The name is always consisted of four parts in order, your location, your part name, the character of your industry and the type of your organization.
Step 2 Preparing for some documents
After having reserved the name, certain documents have to be submitted to the approval authorities in the area where you intend to open the company. They are the following:
(1) A project proposal
Your project proposal should contain the following points:
The purpose, scope of business, scale of operation and production plan of your new company
The technology, equipment, public facilities and sites that will be used
The financing of the project, the forecasts and evaluations as well as the wages of the personnel
(2) A written application letter for the establishment
This application letter is always along with a feasibility study report, proof of the pre-registration of the company name with the SAIC as well as an office lease agreement
(3) A list of the members of the board of directors
It also includes the proposed chairperson, and their respective appointment letters. What’s more, document of incorporation as well as a credit certificate of your new company’s investor is also needed.
Step 3 Going for the registration
Once the approval authorities have received all the necessary documents, they have 90 days during which they will decide whether or not they will grant the approval to establish a WFOE. The actual decision is often given within 30 days.
Within 30 days of having received the Approval Certificate, you will have to go to the SAIC to register and apply for a business license. This license has to be issued within 30 days. After the registration with the SAIC has been completed you should also take care of its registration with tax authorities, banks, etc.