Best answer: How can a foreigner start a business in China?

Can Foreigners open business in China?

Foreign Ownership

There are no restrictions on the scope of business activities that a company can engage in. China allows foreign entrepreneurs to set up a wholly owned limited liability company, also known as a Wholly Foreign Owned Enterprise (WFOE).

How can a foreigner set up a company in China?

10 Steps to Open a Foreign Invested Company in China

  1. Submitting your Chinese name for pre-registration (approved by SAIC)
  2. Register and obtain the Approval from the Ministry of Commerce (MOFCOM)
  3. Choose your Business Scope.
  4. Sort out your documents to obtain the Chinese Government Approval.

How much does it cost to start a business in China?

Fees

Different China entity types Cost Draft invoice
Subsidiary LLC US$16,650 View invoice PDF
Holding company LLC US$17,650 View invoice PDF
LLC with employment visa US$21,600 View invoice PDF
Hong Kong legally tax exempt company US$8,910 View invoice PDF

Can foreigners own Chinese companies?

A wholly foreign-owned enterprise (WFOE, sometimes incorrectly WOFE) is a common investment vehicle for mainland China-based business wherein foreign parties (individuals or corporate entities) can incorporate a foreign-owned limited liability company.

IT IS INTERESTING:  Do independent contractors need a business license in Indiana?

How do I start a small business in China?

Contents

  1. Background – Foreign Investment in China.
  2. Step One: Pick a Business Location.
  3. Step Two: Consider a Global Expansion Partner.
  4. Step Three: Use a Recruitment Agency to Hire Chinese Staff.
  5. Step Four: Choose a Legal Structure.
  6. Step Five: Create Your Business Plan.
  7. Step Six: Open a Bank Account.

How do I get a business license in China?

To register in Mainland China, companies are required to apply to the relevant authorities for a business license. This application is usually made at the company’s local Administration for Industry and Commerce (AIC).

Can I own a business in China?

In China, it is possible to start a business in an easier and low-risk way. Companies can use a PEO (Professional Employer Organization). A PEO is a company that provides services under which an employer can delegate employee management tasks such as payroll, employee benefits, and workers’ compensation.

Is China a good place to start a business?

China is one of the most important emerging markets in the world and one that offers many business opportunities for foreign investors. … However, despite the initial differences and challenges, China is an excellent place to start a business.

How do I register a company in China?

What is the procedure to register a company in China?

  1. Pick An Agency To Initiate The Registration Process On Your Behalf. …
  2. Choose Your Preferred Company Category. …
  3. Apply for company name approval. …
  4. Prepare the Documents Required. …
  5. Apply For Approval Certificate. …
  6. Register With The PSB (Public Security Bureau)

How can I open a factory in China?

How to Set Up Manufacturing in China

  1. Sign an NDA (Non-Disclosure Agreement)
  2. After the NDA is signed, give a complete and accurate scope of the project to the sourcing agency including goals, deadlines, milestones, and final products.
  3. Stay interested and in constant communication.
  4. Be prepared to pay some costs up front.
IT IS INTERESTING:  Do you need a work permit to start a business in Canada?

Can you own a house in China?

“There is no private ownership of land in China. One can only obtain rights to use land. A land lease of up to 70 years is usually granted for residential purposes. Foreigners who have worked or studied in China for at least a year are allowed to buy a home.

How long does it take to open a business in China?

The process of registering a business

Setting up a business in China overall generally takes three to six months and involves various government authorities and procedures that may differ depending on the industry your business is in and the structure you have chosen.