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Ten Frequent Questions for China Company Registration

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Q: How to determine the registered capital of a China company?

A: The registered capital of a China company is decided based the industry category. It’s not necessarily true that the larger registered capital, the better. In principle, the registered capital should be based on the actual situations. The registered capital is also related to the legal liabilities assumed by the company.

Ten Frequent Questions for China Company Registration

Q: What is the subscription system of registered capital?

A: Shareholders should make commitments to the schedule for making capital contributions to the registered capital in the Articles of Association at the time of establishing a China company. For example, if the subscribed schedule for making capital contributions to the registered capital is 30 years, the registered capital will be invested within 30 years from the date of establishment of such company. The specific time and amount of investment are decided based on the actual situations of the company.

Q: How many shareholders required for establishing a China company?

A: One, two or more shareholders can establish a company. A company of one-person shareholder is registered as a one-person limited liability company, and such company can be established once nationwide. Companies with more than two shareholders can be established in several places.

Q: How many positions required for establishing a China company?

A: A company requires at least 3 positions, including legal representative, supervisor and accountant.

Q: How to decide a China company’s business scope?

A: The business scope of a company is selected based on the type of business engaged, more fully described in the national industries classification. You may also consult Business China for assistance. If the business scope does not include specific businesses, it is easily decided by the relevant departments as an over-range business.

Q: Any requirement for China company registered address?

A: A company’s registered address needs to be inside a commercial building or office building. If you engage in online sales only, you can register inside a residential house. If catering and foods, you should also satisfy the relevant special requirements.

Q: How long does it take to register a company?

A: Based on the type of the company to be established. It takes only about 3 weeks to establish a services or simple commerce company. However, if the company to be established involves import-export operation right or other licensing applications, it generally takes more than 1 month.

Q: How many times do shareholders arrive at site for company registration?

A: Shareholders, as the case may be, are required by industrial and commercial bureaus in some regions to arrive at the site for signature. In addition, the taxation office needs to take pictures when at the time of handling real-name registration. Legal representatives are also required by some banks to arrive at the site for signature at the time of opening accounts.

Q: What need to pay attention to after the completion of company registration?

A: After the establishment of a company, the company, in addition to the normal lawful operations, should conduct monthly normal tax declarations, as well as annual report disclosure and other matters. In addition, the company should also pay attention to the expiry date of its relevant certificates, and should renew them in a timely manner.

Q: Does a company need to handle procedures if it does not operate?

A: If a company intends to end its operations, it needs to handle the taxation and business cancellation procedures. Otherwise, it will be easily blacklisted or revoked by the relevant departments.

You may also call Business China for any other questions.

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