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Who can establish the aforesaid entities in China?

Except for special industries, , natural persons and legal persons from any country or area are usually permitted to invest in China to set up wholly owned foreign enterprises, Sino-foreign joint ventures. In addition, foreign enterprises may establish representative offices.

What types of legal entities can foreigners establish in China?

Foreigners can establish various kinds of legal entities in China. The most common entities formed by foreigners are wholly owned foreign enterprises, Sino-foreign joint ventures, and resident representative offices of foreign enterprises. Wholly owned foreign enterprises require 100% foreign investment, while Sino-foreign joint ventures are established using a combination of foreign and Chinese investment. Both types of entities must operate their businesses within the scope of activities that is approved by the Chinese government. In contrast, resident representative offices of foreign enterprises are agencies that are established to maintain daily contact with their clients in China, but which are not permitted to operate business activities directly.

Are there requirements regarding naming foreign-invested enterprises?

In China, there are four parts of an enterprise's name: administrative division (e.g. Beijing) + the business name (e.g. Glory) + description of the type of business (e.g. Business Consulting) + the enterprise type (e.g. Co., Ltd.). Also, within the same administrative area, the pronunciation of an enterprise's business name may not be the same as the pronunciation of the name of another enterprise in the same industry.

When are foreign-invested enterprises required to pay the registered capital? Is payment of registered capital required only once?

Foreign-invested enterprises can only pay their registered capital after they have obtained their business licenses and opened company accounts. The registered capital can be paid in two ways: one is a one-time payment within 6 months from the date of issuance of the business license; the other is to pay in two installments: the first payment of at least 15% of the registered capital is paid within 3 months of the date of issuance the business license, and the remaining amount is paid within 2 years of the date of issuance of the business license.

Business Type

There are China Consulting Company and China Trading Company

A. China Consulting Company

The service charge for establishing above company shall be USD3,999. including taxes, disbursements and government charges, which will become payable within five (5) days after the execution of this agreement.


The package of service for the establishment of the Consulting Company in China includes:

  1. Company name confirmation including advice and suggestions
  2. Application for Approval Letter issued by Local Municipal Commission of Commerce
  3. Application for Business License issued by Local Administration of Industry and Commerce
  4. Record in Public Security Organs
  5. Application for engraving company seals
  6. Application for Organization Code Certificate
  7. Application for Tax Registration in Local Tax and State Tax Bureaus
  8. Application for Statistical Certificate
  9. Foreign Exchange Registration
  10. Application for Financial Certificate
  11. Assistance with documents preparation
  12. Checking and commenting on all documents prepared by Party B
  13. Communications between relevant governmental departments and Party B during relevant applications
  14. Updating Party B of any progress, change, problem and suggestion in a timely manner

B.China Trading Company


Service Scope for Setting up a Trading Company in China

  1. Company name authentication including advice and suggestions
  2. Application for the Approval Certificate for Foreign Investment Enterprise with the Local Bureau of Commerce
  3. Application for the Business License with the Local Industrial and Commercial Administrative Bureau
  4. Preparation of the company seals
  5. Registration for the Organization Code Certificate and IC card
  6. Registration for the Statistical Certificate
  7. Registration for the Foreign Exchange Card
  8. Changing temporary Business License into formal Business License after injection and verification of the registered capital (once)
  9. Registration for the Tax Certificate
  10. Assisting in documents preparation
  11. Checking and commenting on all documents prepared by Client
  12. Communicating between all relevant government departments and Client during the application
  13. Updating Client any progress, problems and suggestions in a timely manner

The basic charge for the above company establishment service is USD4,999


  • All below applications regarding import and export trade are to be charged additionally to the above service scope, which includes without limitation of e-port application, commodity inspection and quarantine application, tax reimbursement and exemption registration and record of foreign trade dealer. The service charge for this part is USD1,000;
  • All the service charges are including our disbursements, taxes and government charges.

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