SJ Grand is a reference on company registration in China

SJ Grand is involved on every step of the process of company registration in China

SJ Grand is renowned for its strong expertise of the China market, law and financial system. SJ Grand can assist your company in any step of your company registration in China, as detailed below :

1. Acquire a notice of pre-approval of the company name 
2. Open a preliminary bank account; deposit endowment in the account and acquire the certificate of deposit 
3. Acquire capital confirmation report from an auditing firm 
4. Apply for registration endorsement « business license of enterprise legal person », with the association code license issued by the Quality and Technology Supervision Bureau and registration for both state and local tax with the tax bureau 
5. Acquire the agreement to make a company seal from the police division 
6. Create a corporation seal 
7. Pay the charge for the association code license issued by the Quality and Technology Supervision Bureau at the time of pick-up 
8. Register with the resident statistics bureau 
9. Open a official bank account of the firm and transfer the registered investment to the account 
10. Apply for the approval to copy or obtain financial bills
11. Buy uniform invoices 
12. File for hiring registration with resident career service center. 
13. Register with Social Welfare Protection Center 

 SJ Grand is involved in any kind of company registration in China: WFOE, RO, EJV, CJV

SJ Grand work with trustful local partners to provide you services related to company registration for any offshore structure (any kind, including Hong Kong and the British Virgin Islands) and any trading company or representative office in China mainland.

SJ Grand’ staff has a large experience of creation and monitoring of any kind of investments open to foreign companies in China. SJ Grand’s teams are expert in registering of fiscal system and financial optimization for representative office (RO), wholly foreign owned enterprise (WFOE), Equity joint venture and cooperative joint venture.

http://www.sjgrand.cn/wfoe-china

http://marketingtochina.com/sj-grand-celebrates-10-years-china-new-projects/

http://wfoebeijing.blogspot.com/2014/05/sj-grands-expert-team-on-wfoe-in-beijing.html

http://researchforchina.com/2014/06/02/sj-grand-an-expert-team-on-foreign-investment-in-china/

 

Legal structures in China

What legal structure to adopt?

The Chinese business law distinguishes the Chinese companies of Companies with foreign investments ( EIE). These can be held(detained) by Chinese and foreign partners or be created with 100 % of foreign capital.

Several legal forms are possible for a setting-up(presence) in China, but a foreign national cannot exercise an activity as sole proprietor.

The Catalog of the foreign investments in China is very important to consult. He specifies, according to the business sector, the encouraged, authorized, restricted or forbidden foreign investments. The last modification of this catalog came into effect on December 1st, 2007.

The EIE is submitted in preliminary to the approval of the Chinese Ministry of Trade ( Mofcom) or its representation at the local level according to the amount of the investments.

They are governed by:
– The relative law of July 8th, 1979 to the « Equity joint-venture »;
– The relative law of April 13th, 1988 in cooperative joint-venture;
– The law of April 12th, 1986 on companies with exclusively foreign capital.
The company law completes them in the cases where nothing is planned.
These regulations would soon be amended to reflect the new statutory provisions on companies(societies) come into effect in 2006.

Texts on the EIE do not plan minimum capital. It is necessary to argue by analogy with the trading companies of common law and to refer to the local practices.

The mixed company of capital or equity joint-venture ( EJV)

Ll involves a company(society) of Chinese right(law) established(constituted) by at least 2 partners, the one Chinese and the other foreigner(foreign countries).
It is a limited liability company: the responsibility of the partners is limited to their contributions. The distribution of profits is made according to the equity participation.
In the absence of Shareholders’ Meeting, the board of directors(board meeting), the composition of which often reflects the allocation of capital, makes the most important decisions.

There is no safe foreign upper limit of the participation in certain sectors in which the Catalog or a particular sectorial regulations can plan the Chinese majority.
The fiscal year is made on a calendar year. Financial statements must be stopped(arrested), audited by an external listener(auditor) and subjected(submitted) to approval of the board of directors(board meeting).

This shape was divided into halves with a more supple(flexible) variant: the cooperative mixed company(society) (Cooperative joint-venture – CJV). She(it) is more supple(flexible) as regards the distribution of profits (this one is not inevitably proportional in the contributions of the partners), the modes(fashions) of management, the return of the investment and the duration of the contract of company(society).

 

The company with exclusively foreign capital or Wholly foreign owned enterprise ( WFOE)

This shape of setting-up(presence) is the most the common(current) the and most privileged. Indeed, the statutory softenings(limberings up) allow to take place of a Chinese partner in most of the branches of industry.

It is about a companyof Chinese law created by foreign investors.
The responsibility of the partners is also limited to the amount of their contributions (Limited liability company).

The shareholders can be either a legal entity (a head office abroad), or physical persons.
The required minimum capital depends on several factors: the nature of the activity, the business sector, the place of setting-up…

NB: credit note of the Chinese partners can establish a not insignificant help for the development of the company and the creation of links, but the WFOE creation remains more flexible in terms of daily management.

ACPE (french)

 

Demarche pour créer son WFOE en Chine

La procédure de création de WFOE

Première étape de son implantation en Chine, le WFOE peut être rendu relativement compliqué par les démarches et les exigences des autorités chinoises. Pour y voir un peu plus clair, rappel des grand principe de l’ouverture d’une WFOE. Avec ce conseil à retenir : soyez patient ! Les chinois ne sont jamais pressés et la procédure peut durer jusqu’à 6 mois entre la soumission d’un nom d’entreprise et la remise d’un rapport final complet :

Dans un premier temps, il vous sera requis de trouver un bureau ou local commercial, puis de proposer 3 noms de sociétés potentiels pour votre projet d’entreprise. Jusqu’ici vous gardez donc la main.

Une procédure stricte à suivre

Ensuite il vous sera demandé de mettre en place un business plan. Ce business plan devra faire preuve de sa pérennité mais également de son intérêt pour la croissance économique du pays accueillant, la Chine donc.

De plus, il faudra apporter un preuve de capital variante selon les projets. En général, on compte entre 400 000 RMB et plus de 1 000 000 RMB de requis.

Toutes ces démarches vous permettront d’obtenir une étude faisabilité approuvée, qui débouchera sur un certificat d’approbation et enfin la business licence. La business licence vous permettra enfin à votre entreprise de posséder sa propre identité juridique.

De plus, il faudra compter sur l’enregistrement auprès du bureau des taxes, des statistiques, au bureau financier voir au bureau des douanes.

Une dois la Business licence en poche, vous aurez un maximum d’un mois pour ouvrir un compte en banque et y verser le montant du capital déclaré.

Dernier étape, suite au versement du capital, un audit sera effectué avant de pouvoir facturer ou recevoir des factures.

source : Sinochem

voir wikipédia