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China Shanghai Company Registration Package

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Shanghai City

Shanghai’s GDP dominated the city list in China in 2015, where it came second only to Tokyo, Japan amongst Asian cities. It is no secret that Shanghai has transformed into one of the world’s most famous business and financial centers, and not to forget, one of the world’s largest metropolitan areas. 

The Shanghai port has the largest cargo and container throughput in the world, and Shanghai also owns the first free trade zone in China, the Shanghai pilot free trade zone, which has resulted to injecting more vitality into the Chinese economy. This is reason enough for any foreign business looking to expand to China to go through the proper China Shanghai company registration process so that they are able to do business in China legally. 

China Shanghai Company Registration - Business China

How to Start a Shanghai Company?

Before going through the China Shanghai company registration process, here are a few things that you will need to know about:

Unlimited Liability Company

For those who are not familiar with doing business in China, an ‘unlimited liability company’ means that the company’s shareholders enjoy unlimited liability for all debts of the company. In a sense, the unlimited company is the initial form of a company’s registration structure in China. They type of company is available to make full use of the benefits of shareholders of personal credit to trade or borrow. The only major disadvantage of the unlimited liability company is that the shareholders must take a big risk and take on many difficulties during the financing process. What’s more, the personal assets of the shareholders assume unlimited liability for the debts of the company. 

An unlimited liability company means the company’s shareholders bears unlimited liability for the debts of the company. Unlimited company is the initial form of the company's registration structure, it is available to make full use of the advantages of shareholders of personal credit to trade or borrowing. The major disadvantage is that shareholders undergo big risk and have difficulties in financing. Even worse, personal assets assume unlimited liability for the company's debts. But, that’s not to be taken as an excuse to not getting started with a China Shanghai company registration package.

Partnership Company

Owing to an unlimited liability that all of the shareholders are required to undertakes, there’s another company type that’s become extremely popular in China for foreign investors. This is known as a ‘partnership company.’ In China, a partnership company is divided into two distinct types; ordinary partnership and limited partnership.According to the responsibilities and obligations that have been stipulated in theChina Shanghai company registration package,the partnership enterprise, some shareholders will have to assume unlimited liability, while other shareholders will have to assume limited liability. 

Joint-stock Company

In China, a joint-stock company’ refers to an enterprise whose property is jointly funded by either two or more investors and is in the form of shares. The joint-stock enterprise that operate in China mainly have two forms of organization, i.e. a company limited by shares and a limited liability company, which including the wholly state-owned company. 

Limited Liability Company

In a ‘limited liability company’ the shareholders bear limited liability for all corporate debt. When it comes to a limited liability company, the most common and most frequently used business structure used for foreign investors is WFOE (Wholly Foreign Owned Enterprise). 

Shanghai Company Registration in Hot Industries

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