What Does It Take to Register a Company in China?
The process of China company registration is not that difficult.
The China company registry has increased its efficiency over the last few years; the process is much faster, the registered capital required is lower, and there are more options for non-Chinese nationals who want to open their own company in China.
Typically, most people considering China company registration, want to operate legally in China. Either they want to sell and issue tax invoices, they want to import goods to China, or they want to have an office where suppliers and manufacturers can visit them. But most of all, they want to employ people in China to establish their own team on the ground that can update them with agenda-free information in real time.
Although China company registration has become much easier, the process can still take between 3 to 6 months. If you handle it yourself, you may spend days standing in the queue at the registry office. Even if you had the time to queue, filling in what seems to be an endless number of Chinese documents is an exhausting task. So hiring an agent to do this for you is not a luxury; it’s a must.
Registering a company in China is a straightforward process (unless you are a large company with a very complicated corporate structure). You have a limited number of options to choose from, however, it is highly advised you consult with a professional before choosing. If you register the wrong company type, you won’t be able to legally operate your business, even though you are the proud owner of a Chinese company.
Tax structure and cost
One of the things you will be required to decide during the registration process is your tax structure. Again, there aren’t that many choices, but each will allow or prohibit you from doing certain things.
Consult with an accounting firm or a lawyer specializing in tax planning before you make any decisions. Remember, the law in China is very different than in the west. Instructions given to officials in the tax office pertaining to the handling of cases can differ also.
Lastly, the cost of registering a company in China can vary a lot. The fees that the Chinese government charges are not very high. Depending on which firm you hire to register the company for you, fees may range from a few thousands of dollars to hundreds of thousands. Be very careful; paying more doesn’t necessarily buy you a better company. It is important to hire the type of agent that understands your business needs and will help you register a company that will allow you to make effective decisions at low costs.
So far the easy part – Here comes the real challenge:
Managing your people.
Before you even choose a company name, make sure you have the resources needed to manage a team in China. The first thing you need to consider is who is going to be your main person in China. Do they have the required skills and experience to manage your operation in the middle kingdom, and more importantly, are they worthy of your trust?
Next consider the cost, not just financial, of creating a China team. Your team will require time and support from headquarters; they will need training and financial backing.
And lastly, your China operations will have a cost. Make sure you know the elements that determine this cost and avoid expensive office leases, high operation, and administrative fees and be aware of all employer cost such as insurance and other legally required employee benefits.
CSO Projement is
A service provider helping non-Chinese companies work directly with Chinese factories.
Our customers are tech-based SME’s for whom price and quality are equally important and to whom protecting their reputation is a top priority.
Our customers are companies that cannot afford paying commissions or third-party margins on top of the net factory price. They are companies with complex products and complex supply chain.
Our clients understand that they must work directly with their manufacturers for improved communication and fast decision making.
They are companies for whom quality and cost are important uncompromising concerns, and want to be involved in the order follow up process, but cannot afford to let it consume too much of their time.
Who is this service for
If you are already active in the Chinese marketplace, have no team here, and feel your business in China requires more attention, then this service is for you.
Some people are traveling to China frequently and need a local team to support them so that they can reduce the amount of time they spend in China, and focus on growing their business. This local team must be nurtured, trained, and motivated so that its members develop a sense of loyalty to your organization and bring you the best results possible. An important component in motivating a team is to make your company their home by hiring them legally and granting them benefits, they are legally entitled to. If you need a team like that, and you want the best this team has to offer, then this service is for you.
CSO Projements management has extensive experience managing various kinds of companies in a wide range of sizes.
We know what it takes to manage a company. When we help you with the China company registration, you will get access to our 20+ years of experience managing business in China for absolutely free.
With us, you will receive a free consultation concerning the best way to operate your business in the most effective and affordable manner. Once you know what kind of company you want to have, we will register it for you in a way that grants you the flexibility and tools needed to manage your business.