10 steps to incorporating in China

Incorporation of a company in China and opening of a local corporate bank account constitutes a complex engagement. Our Firm will consequently need an average of six months to complete it. However, our Client will not have to travel to China, as all tasks will be completed by Healy Consultants and our business incorporation agent. The typical procedures for China business incorporation are as follow:
China business incorporation procedures

Pre-incorporation steps

  1. Before we provide our Client with China incorporation services, our Client i) settles Healy Consultants’ engagement fees ii) signs and returns our Client engagement letter iii) provides us all the required due diligence documents;
  2. Healy Consultants drafts a detailed China project plan, mapping out by week each step to engagement completion, optimizing transparency of China business incorporation procedures and setting Client expectations;
  3. Before our Client can register a new company in China, they must secure a lease agreement for local premises. If requested, we will assist our Client with finding permanent premises for his company in China;

Incorporation steps

  1. Healy Consultants obtains a pre-approval notice of the company name and business activities from the Chinese Companies Registrar of the relevant city or province of incorporation;
  2. Unfortunately, all foreign-owned enterprises in China (WFOEs, FICEs and joint venture) must go through a complex approval process by the authorities including: i) pre-approval of a business plan by the China National Development and Reform Commission ii) incorporation approval by the PRC Ministry of Commerce and iii) foreign exchange registration with China’s State Administration of Foreign Exchange. Our Team assists Clients with completing these time-consuming steps, which are further described in the detailed project plans we send to all our Clients;
  3. Healy Consultants prepares and emails our Client the documents and consent forms required to incorporate the company and assists our Client to open a corporate bank account with a bank in China. On approval of this bank account, our Client deposits 15% of the paid-up share capital (between US$15,000 and US$75,000) and supplies us a certificate of deposit and bank statement as capital verification;
  4. Upon receipt of the above-mentioned documents, Healy Consultants incorporates the company with the State Administration for Industry & Commerce and provides our Clients with the certificate of incorporation and business license of the Chinese company;

Post-incorporation steps

  1. Post-incorporation registrations include: i) tax and VAT registrations and securing approval to print and purchase sales (“fapiao”) invoices from the State Administration of Taxation ii) file for recruitment registration and iii) register the company with the Social Welfare Insurance Authority;
  2. If needed, we can assist our Clients to recruit local and expatriate staff by placing advertising campaigns in local publications, such as the South China Morning Post and the Beijing Bulletin;
  3. Following China engagement completion, Healy Consultants couriers a full company kit to our Client, including original China corporate documents, unopened bank correspondence, and a Client feedback survey regarding the quality of Healy Consultants’ China company incorporation services.

Documents required to incorporate a foreign invested company in China

Other than the standard personal and corporate due diligence documentation of our Clients, other documents required during the China company incorporation process include:

  • Notarized and legalized passport copies of the i) legal representative and ii) supervisor, who are not directors of the Chinese company and can be of any nationality and are not required to reside in China;
  • Power of Attorney granting powers to the legal representative to register the company on behalf of our Client;
  • Copy of the lease agreement for the physical office premises in the same province where the company is incorporated;
  • Detailed business plan or investment proposal for the Chinese company.

Contact us

For additional information on our incorporation services in China, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi