Conpak CPA Limited > Company Formation > China Company Formation

China Company Formation

With China’s increasingly prominent position in global market, global investors have realized the importance of China market. Setting up China companies and developing their business to take the huge China market are top choice for many investors.

Due to China's Five-Year Plan emphasizing on expanding domestic demand and increasing average wage level, it is an opportunity for foreign enterprises to develop their business in China.

Conpak well understands the law system of mainland China, enabling us to help foreign investors choosing the most convenient form of China company formation in order to achieve business expansion.

Our Services Include

  • Wholly Foreign-owned Enterprise (WFOE) Formation
  • Foreign Investment Enterprise (FIE) Formation
  • Foreign Representative Office Formation
  • Processing & Assembly Company Formation
  • Sino-Foreign Equity Joint Venture Formation
  • Sino-Foreign Co-operative Joint Venture Formation
  • CEPA Foreign Enterprises Formation

Wholly Foreign-owned Enterprise (WFOE) formation and Foreign Representative Office formation are two common choices for oversea investors to incorporate a China company.

Wholly Foreign-owned Enterprise (WFOE) Formation

Wholly Foreign-owned Enterprise (WFOE) means a foreign company, enterprise or an individual setting up an enterprise with in China territory in line with China’s laws, whose entire capital is contributed by a foreign investor.

Wholly Foreign-owned Enterprise shall meet at least one condition mentioned below:

  • Adopting international advanced technology and equipment
  • All products or most of products are export oriented

Required Documents

  • Feasibility study report
  • Application for foreign investment company formation signed by the proposed legal representative
  • Articles of Association
  • Enterprise Name Approval in Advance Notice
  • Investor's entity qualification certificate or natural person's ID card
  • Appointment letters and ID cards of directors, supervisors and managers
  • Appointment letter and ID card of the legal representative
  • Certificate of assessment of capital
  • Lease contract or certificate of property rights
  • Meeting records
  • Documents or certificates for earlier setup examination and approval

Notes

Foreign-funded enterprises shall set up account books in China to conduct independent accounting, submit accounting statements in accordance with regulations and accept supervision by the financial and tax authorities.

If the enterprise refuses to set up account books in China, financial and tax authorities will be able to impose fines, and the industrial and commercial administrative organs may order to cease business or revoke its business license.

Foreign Representative Office Formation

Foreign Representative Office Formation is an effective way to enter China market with low cost. By conducting direct market research and information collection in China, representative office can provide enterprise with first hand analysis report supporting better decision-making. Meanwhile, Foreign Representative Office can supervise market plan and develop strategies against its competitors, building up close business relationship with its partners or customers. All of these are very important for doing business in China.

Requirements

  • The enterprise must have registered legally in its home country.
  • The enterprise should be founded at least two years in its home country.
  • The enterprise should have good business reputation.
  • The enterprise should have fixed place of business.
  • The enterprise should appoint one chief representative.
  • The enterprise can appoint one to three representatives.
  • Name of the representative office is needed
  • Name of representative office should be written as following format:
  • Country/region + Company Name + (in proposed district) Representative office

    Eg: Hong Kong Zhipeng Development Co., Ltd (Shenzhen) Representative Office 

    Required Documents and Time

    • Foreign enterprise should provide the proof of residence and legal business for more than two consecutive years.
    • Foreign enterprise charter or organization agreement
    • The appointment file of chief representative
    • The identity and resume of chief representative
    • Certificate of its credit worthiness issued by financial institution proving business transactions existed
    • The proof of legitimate use of representative office location

    Maintenance

    The follow up maintenance of China Company mainly includes Annual Examination and Tax Returns.

    Annual Examination

    The China government requires related authorities to jointly perform an Annual Examination on foreign investment enterprises, so as to ensure the sustainability of the legal interests of those enterprises.

    Procedure of Joint Annual Examination

    Providing required information for Annual Examination → Issuing an audit report by a CPA → Conducting the Joint Annual Examination and reporting → Filing with related authorities to stamp for the Annual Examination → Transferring relevant information

    Tax Returns

    Within 30 days upon formation, China Company shall apply to the tax authorities for tax registration and tax returns.