Frequently Asked Questions about China

How long does it take to incorporate a China Company?
Healy Consultants can legally complete China Company registration within a month.

What is the minimum number of directors/shareholders required for a China company?
For a China Wholly-Owned Foreign Enterprise (WOFE), to complete company Formation in the China only one director and one shareholder are needed. The shareholder and director don’t have to be a resident in China.

Is a China company subject to an annual audit?
Yes. The Chinese government requires frequent, onerous, complicated accounting and tax reporting.

Are there any restrictions on ownership of a China company?
None. FICE or WOFE can be 100% foreign owned.

Does a China company need a resident company secretary?
No

Is information about the company available to the public? 
Yes, the public register of company details is available.

Is there a minimum capital requirement for setting up a company in the China?
A China WOFE or FICE must pay a minimum 20% of the registered capital into a corporate bank account in the first 3 months of incorporation, the remaining 80% is to be paid within 2 years. Under China company law, the minimum share capital for a company with multiple shareholders is just RMB30,000 (US$5K) however, the real minimal capital requirements depend on what authorities believe to be required for each specific company project.

Are there any restrictions on the business a China company can purse?
Certain activities to be undertaken by a China company require a license e.g. banking, insurance, trust management or investment advice services.

Are foreign companies allowed to trade in the China? 
A China FICE can carry out a wide range of activities, including wholesale, retail and franchising trade activities in China.

What are the restrictions for a China FICE company?
China company law regulations allow foreign companies to undertake manufacturing activities in China. A manufacturing FICE is similar to a WOFE but with an import/export license.