Chinese Company Set-Up

Chinese Company Set-Up

Chinese Company Set-Up

Setting up a company requires quite a few more steps than most other countries because of its bureaucratic nature and centralized government that requires many signatures and rubber stamps.
Although it is complicated, with a clear, laid out plan and being proactive, MMG Thailand can set up your company with our expert team hassle-free.
There are four crucial points to consider before setting up your company and processing the registration of your Chinese company.
  • The parent structure is an important consideration when applying for company registration.
  • You must consider the amount of registration capital you will commit to investing in your Chinese company. It would be best if you determined your registration capital in your planning stage.
  • The registration location of your company in China will determine the required steps, lead time, and required capital.
  • According to your industry,  to get the necessary licenses, such as import/export, etc. You must research all the extra permits you will need beforehand, ensuring you can operate freely with the correct documentation.

Let's take a closer look at the eight required steps
to set up your company in China

Preparation Phase

Preparation Phase

The preparation phase is perhaps the most critical step in setting up your company. You will need to prepare shareholders’ documents from the parent structure, Chinese company names are selected, and office location is chosen, among other documentation.   

MMG Thailand will provide a clear step-by-step explanation of what documentation and preparation are needed as this process requires many decisions and preparation of documentation.

Company Name Application

Choosing the right name is an essential step in the process due to the chance that your selected name is already taken; hence applications are rejected. Therefore, you should prepare six optional names for this case.

 

Company names are set up in the same manner and order as below

  • City of registration 
  • Chosen company name
  • Industry type
  • Company type

For example, MMG’s official company name in China would be “Shanghai MMG Business Consulting Co., Ltd”.

Certificate of Approval

The next step is applying for the certificate of approval from the Commission of Commerce; typically, this process is straightforward. However, it does require an extensive amount of documentation for approval. 
You will need to provide the Company name, valid office address, identification of legal representative, supervisor name, and the contact person for future inquires from the COCD. Besides, you will need to describe the business scope, registered capital amount, shareholder’s information notarized, articles of association, and estimated hours of operation for the company.
All of the above documentation is necessary to provide the COCD to process the request and issue a receipt that you can use later to pick up the approval certificate.

Business License Application

The most important document for your company is the business license, considering that you are now an official company under the Administration of Industry of Commerce, otherwise known as the AIC. However, at this point, it is non-operational.
This process requires submitting original documents such as the original certificate of approval, office rental agreement, article of association, and notarization documents of the shareholder’s agreement. On a case-by-case basis, the AIC might request more records.

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Company stamps

Company Stamps

The company stamp is a crucial component in the operation of your WFOE company. You will need to provide the certificate of approval and business license to an official AIC agency that will produce your company stamp.

Organizing the Company Bank Accounts

You will need to set up the bank accounts to deposit registered capital, make payroll for employees, and other operating requirements. It is vital to select the right bank according to fees, international experience, and time efficacy.

After you select the bank, you will need to submit the original registration documents for your company, and the bank will process the account. Following approval, you will receive both the primary account and your capital account.

Tax bureau registration: VAT & Fapiao

It is necessary to register your company with the tax bureau to receive your VAT registration number. There are two types of VAT Tax groups:
  • Small scale tax bracket pay 3% VAT
  • The broad-scale tax bracket pays 6%, 8%, or 13%, depending on the industry.

You will also need to acquire a Fapiao machine to produce tax receipts for local service providers or vendors that require the tax receipts. To receive the Fapiao machine, you are required to submit original company documents to the tax bureau.

Foreign funds license

Foreign Funds License

The last step is to register to receive funds from overseas. With this, you will be able to accept international money transfers as required.
The registration approval is straightforward, submit all original company documents and receive your foreign fund license in a few days. It will signals the company is fully set up, operational and can receive international money transfers.
Setting up a company in China is quite a tedious process, but with the assistance from MMG Thailand, partners can take a lot of the stress and red tape out of the equation, contact us to help make the process hassle-free.

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Due to high demand of our services, we offer only a 40-minute free consultancy session

Headquarters

Soi sukhumvit 39 Khlong Toei Nuea, Bangkok 10110

Operational office

211 Soi Pridi Banomyong 11, Sukhumvit 71 Rd., Khwaeng Phra Khanong Nuea, Watthana, Bangkok 10110

contact no

+66(0) 63-167-8206

E-mail

info@mmgthailand.com

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