What is the Easiest Way to Set Up Company in China?
If you are looking for a way to rapidly expand your company into a global multinational, there are many proposed methods, but the best one is going offshore. This means opening a company in a foreign jurisdiction and using it as a springboard into the global space. The secret here is selecting a jurisdiction with huge potential to push your business globally. China stands taller than its peers because it is strategically located in the Far East, has a large market, and stable social-political space.
A closer look at China reveals that most of the brands that have gone there, from Apple to Dell, among others, have experienced rapid growth and are now revered multinationals. To take advantage of this high-potential jurisdiction, you need to start with company registration.
As we are going to demonstrate shortly, incorporating a company in China can be complex, which brings us to the main question, “How do you simplify the process?” In this post, we will tell you the simplest way to set up company in China and craft strategies for success.
What You Need to Know About China
Before looking at the simplified way to set up company in China, let’s start by understanding this jurisdiction. So, here are some important facts that make China a very attractive jurisdiction for investors:
- China’s population is 1.44 billion (2021 estimates).
- Nominal GDP of China is US$16.6 trillion (2021 estimates).
- China recorded GDP growth of 6.7%, 6.0%, 2.35, and 8.5% in 2018, 2019, 2020, and 2021, respectively.
- In 2020, China exports were US$2.49 trillion, with manufactured products accounting for 94%.
- The main export partners of China are the EU (17.2%) and the US (16.7).
In addition to these numbers, China boasts of a highly developed infrastructure, educated workforce, and dozens of incentives, all of which work towards helping companies grow faster.
How to Set Up a company in China: The Main Steps Involved
The process of company setup in China can be broken down into the following nine main steps:
1) Pick a business location and register the its name
2) Select preferred legal structure (the best option for foreigners is the wholly foreign-owned enterprise [WFOE])
3) Create a business structure and scope
4) Apply for an approval certificate from the State Administration and of Industry and Commerce (ASAIC) and Ministry of Commerce (MOFCOM)
5) Apply for a company license
6) Register the company with Public Security Bureau (PSB)
7) Open the company’s bank account
8) Register at the tax bureau
9) Apply for additional permits (where applicable)
How to Set Up Company in China Simplified with Expert Assistance
For most people, the documents, procedures, and multiple offices involved in company registration in China make the process complex. It is also expensive because you will need to make multiple flights to China.
The best way to simplify the process is to work with professionals who are specialized in company set up in China.
With a good agency, you have a helping hand with all the experience required to complete the process fast. These experts have been in the industry helping other investors coming to China to register companies, and you can count on them too to get the process done correctly. Indeed, the experts have a lot more to offer.
Because they have helped other highly successful firms set up their operations in China, they will be willing to assist you craft strategies for growth and success.
Also, you can count on them for help with executive functions, such as accounting, payroll, and tax advice.
When it comes to expanding your company globally, China is the best jurisdiction. Make sure to identify a good agency of experts to help not just with company registration but also with entry and growth strategies. You can never go wrong with an expert on your side.