Before setting up a company in this country, you should first be aware of the Chinese Business Laws for doing so. We have written this article to inform you of some of the most important regulations for setting up a business here.
Chinese Market Overview
China has a GDP of more than $13 trillion. The companies and businesses in both Mainland China and the coast are playing a critical role in building and maintaining the country’s economy.
The emerging business and employment opportunities that have grown across several market sectors and industries are granting a great scope for companies and investors.
Jurisdiction of registration
Before starting any business in China, it must be registered.
There is a body responsible for registering different companies in the Republic of China.
Precisely, the State Administration for Industry and Commerce is responsible for registering Chinese companies as:
- Limited liability companies that have been established in the country by foreigners
- Companies established by the investment that the State Council has authorized
- Joint-stock companies that the authorized departments have approved
- Limited liability companies that set up jointly or solely by investment bodies that the State Council has authorized
- Other companies or businesses that the State Administration for Industry and Commerce should register based on the provisions of the relevant regulations and Chinese Business laws or within the regulations stated by the State Council
Items for business registration
According to the regulations and guidelines on company registration in China, there are specific items for registering a company.
These include name residence, business scope, registered capital, legal representative, names of shareholders, and terms of operations of the company.
All the items for business registration must conform to all the administrative decrees and provisions of laws.
Still, on the registration of a Chinese company, the naming must follow the relevant guidelines as provided for in the Chinese business law. For example, a company must use only one name.
The Chinese business law protects a company name that the relevant company registration body has approved.
The company’s registered capital must be expressed in Renminbi always, unless otherwise as provided by administrative decrees and Chinese Business laws.
The company residence shall be the seat of the company’s major office.
A registered residence must be one only. The residence must be within the company registration body’s jurisdiction.