Shenyang Company Formation
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Shenyang company incorporation is also called Shenyang corporate formation, Shenyang business setup, etc. Shenyang is the provincial capital and the largest city of Liaoning Province, People's Republic of China, as well as the largest city in Northeast China by urban population. Along with its nearby cities, Shenyang is an important industrial center in China, and serves as the transportation and commercial hub of China's northeast - particularly with Japan, Russia and Korea.
Starting a company in China is not at all simple. The first question you need to ask yourself is - in order to realize your objectives, is it absolutely necessary to have a legal entity in China or just for some other plans or purposes. There are multiple ways to set up your business in China. Before setting up a business, you’d better consult professional agency for advice.
Company Types
There are multiple ways to set up your business in China, each with their own distinct advantages and disadvantages. These are three of the most common:
1. Representative Office(RO)
A representative office is significantly easier to open than the other types of companies, however, it’s extremely limiting in what your company can actually do. A representative office can’t manufacture products, import or export, or accept payment from Chinese clients. This option is typically only logical for offices that don’t do direct business, like the marketing arm of your company or your customer support staff.
2. Joint venture (JV)
Joint ventures are the second most common business type for foreigners operating in China. There’s significantly less restriction with a joint venture than with a representative office, and it’s the only structure in which “restricted” businesses.
3. Wholly Owned Foreign Enterprise (WOFE)
WOFE’s allow foreign entrepreneurs to own 100% of their Chinese entity. Most WOFE’s are LLCs, or Limited Liability Companies, in which partners only have responsibility for their own invested capital. Opening a WOFE will require registered capital, the amount of which varies between company activity types and provinces, however the minimum required registered capital is typically fairly low.
How to register a company in Shenyang?
1. Determine the business scope and structure
It’s important to check your business type against China’s list of restricted industries to ensure you choose the correct structure. As far as scope is concerned, you’ll want to make sure to have a good balance between being too broad and too limited. Broad scopes tend to be denied permits, while a limited scope can get you in trouble down the line if you’re found to be operating outside of it.
2. Prepare documents
Generally, you will need the following documents:
(1) Certificate of Incorporation;
(2) Copies of the passports of each investor;
(3) Bank references from each investor’s bank declaring good standing;
(4) Copies of the passports of the parent company’s director, the Chinese company’s legal representative and the Chinese company’s supervisor (if applicable);
(5) Proposed Chinese names for the company in China;
(6) The Chinese office address, leasing contracts, certificates of real estate ownership as well as landlord identification.
3. Apply for approval
In China, your business must be approved through two separate entities: the Ministry of Commerce, and the State Administration of Industry and Commerce. Your approval is contingent on your scope, especially in restricted sector businesses. Typically if there is a problem with your scope, one or both entities will require you to amend it. It is possible for your approval to be denied altogether.
4. Register with AIC
After you’ve received your approval, you must register with the Chinese Administration for Industry and Commerce (AIC) and apply for your business license within 30 days. The AIC could also ask for additional documents, but this list is a baseline for what’s required. Once you have your business license, you’ll be able to open a Chinese bank account.
Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143512, or emailing to anitayao@citilinkia.com.