How do I open a branch office in China?
PRC law requires a formal registration procedure for opening a branch office. It usually takes at least two months to set up a branch office. And, if the company needs an increased capital for setting up the BO, the added time for the sub-sequential registration process should be taken into account.
Can a foreign company operate in China?
To operate a business within China, foreign investors must incorporate a foreign-invested enterprise (FIE) in China and obtain a business licence for it, issued by the local government.
What are overseas branches?
A foreign branch is another location of your company that operates entirely in another country. Think of it as an extension of your main office, similar to adding on an extension to your current office, but on a global scale. A subsidiary, on the other hand, is a new business in a foreign country.
How do I register a company in China?
How Do I Register A Company In China?
- Choose an Agency to Help You with the Registration.
- Select the Preferred Company Scope.
- Prepare the Required Documents.
- Apply for Approval Certificate.
- Apply for Business License.
- Register with the Public Security Bureau (PSB)
- Register the Company at the Tax Bureau.
What are the main challenges for foreign companies in doing business in China?
Top 10 challenges of doing business in China
- Market access. Local distribution networks, buying habits of local consumers and regulatory requirements can make China a very difficult market to access.
- Consumer preference.
- Bureaucracy.
- Governmental challenges.
- Intellectual property.
- Competition.
- Labour.
- Human resources.
How do I set up a foreign company in China?
Wholly Foreign Owned Enterprise (WFOE)
- Prepare all legal documents i.e. articles of incorporation, bank references, China legal representative, audit reports and letters of authorization.
- Obtain Required Registered Capital.
- Register with PRC Sponsor.
What are the types of branch accounting?
The different branches of accounting
- Financial accounting. Financial accounting involves recording and clarifying business transactions along with preparation and presentation of financial statements.
- Managerial accounting.
- Cost accounting.
- Auditing.
- Tax accounting.
- Fiduciary accounting.
- Project accounting.
- Forensic accounting.
How do I set up an overseas branch?
You only need to register an overseas company when it has some degree of physical presence in the UK, such as a place of business or branch, where it carries on business. You must file the documents to register a UK establishment with us within one month of the opening of the UK establishment.
How much does it cost to set up a company in China?
Fees
| Different China entity types | Cost | Draft invoice |
|---|---|---|
| Subsidiary LLC | US$16,650 | View invoice PDF |
| Holding company LLC | US$17,650 | View invoice PDF |
| LLC with employment visa | US$21,600 | View invoice PDF |
| Hong Kong legally tax exempt company | US$8,910 | View invoice PDF |
What are the basic requirements for starting a corporation in China?
Process for company setup in China
- Apply for name approval and registration.
- Rent office space as necessary.
- Online registration via MOFCOM.
- Apply for a “5 in 1” business license from the local Administration of Industry and Commerce (AIC)
- Carving chops for the new company.
- Opening bank accounts.
- Register under tax authority.
Why do foreign businesses fail in China?
Of course, some failures are real, and there are many reasons for them: committing too little or too few resources, adapting too little or too much to the local cultural conditions, relying too little or too much on foreign management, engaging too little or too much with Chinese government bureaucracy, scaling too …
Why is doing business so hard in China?
Local distribution networks, buying habits of local consumers and regulatory requirements can make China a very difficult market to access. What’s more, the market environment is completely detached from most other economies in the world, making it difficult to take the first steps.