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In the depth of entrepreneurship
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In the depth of entrepreneurship
Choosing the Right Company Type
Foreword
While attending the Boao Forum for Asia 2015 held at the Boao State Guest House in Hainan, President Xi Jinping stated during the Conference for Chinese and Foreign Entrepreneurs that China will be opening up further as its economy embraces a“new normal”. President Xi said that China’s policy for leveraging foreign investments, and the safeguards for the rights and interests of foreign corporations, will remain unchanged.
Driven by the globalization of the world’s economy, more foreign investors are now setting their sights on China. This chapter provides basic knowledge on tax and legal matters required for a start-up, as well as the supporting policies that foreign companies can benefit from in China. Our aim is to help foreign investors more easily integrate into the entrepreneurial environment in China and galvanize the growth of their companies.
Understanding the relevant laws and regulations governing the setting up of companies by foreigners in China is essential to running a start-up in China. With that knowledge, the owner of the start-up can then decide the enterprise type that is suitable for their own needs.
Driven by the globalization of the world’s economy, more foreign investors are now setting their sights on China. This chapter provides basic knowledge on tax and legal matters required for a start-up, as well as the supporting policies that foreign companies can benefit from in China. Our aim is to help foreign investors more easily integrate into the entrepreneurial environment in China and galvanize the growth of their companies.
Understanding the relevant laws and regulations governing the setting up of companies by foreigners in China is essential to running a start-up in China. With that knowledge, the owner of the start-up can then decide the enterprise type that is suitable for their own needs.
ReadingGuide
Common Enterprise Types
• Basic concepts for companies
· Foreign-invested Limited Liability Company
· Foreign-invested Partnership Enterprise
· Foreign-invested Joint Stock Company
· Representative Office
• Types of business entities and their registration requirements for foreign nationals
William D. Lin
Nationality : Australia
Number of years in Shenzhen : 1
Date established start-up : 2018
Profession : Computer programming
Hobbies: Reading, watching movies and travelling
Nationality : Australia
Number of years in Shenzhen : 1
Date established start-up : 2018
Profession : Computer programming
Hobbies: Reading, watching movies and travelling
Company vision
I was a computer programming major at university. After graduation, I joined the real estate industry at a time when various types of property apps were flourishing in China. Through my research, I found there were not that many property information apps of this kind in Australia. So I spotted an opportunity. Drawing on my personal experience, I began establishing a team to start building propertyselling and leasing apps, where AI technology is used to simulate cenarios that allow users to view foreign properties through videos.
EG
Occupation: Professional start-up consultant
Areas of expertise: Setting up of foreign companies, taxation for start-ups, policies for start-ups in Shenzhen, visa and immigration policies. etc.
Occupation: Professional start-up consultant
Areas of expertise: Setting up of foreign companies, taxation for start-ups, policies for start-ups in Shenzhen, visa and immigration policies. etc.
Having stayed in Shenzhen for half a year, William, who is from Australia, was speaking to a friend from China whom he has known for 20 years about starting an enterprise together. Despite having worked for a number of years in China, he was still unfamiliar with the procedures for setting up a company in China and the relevant official departments involved in the process. Therefore, the professional start-up consultant EG from Start-Up Guide introduced William to the following company terms:
1. Defining a company: A company is a corporate legal entity that possesses assets independently and holds property ownership. A company is fully liable for its debts with all its assets.
2. Registered capital: A company's registered capital is the capital of all its shareholders registered with the company registration authorities. If the full capital amount is not paid up during the capital contribution period, the company's registration may be cancelled, provided that the company has not accrued debts in its name.
3. Company shareholders: Shareholders are investors of a company and are entitled to receive returns on assets, participate in major decision-making and elect the managing executives of the company. A shareholder has the right to initiate legal actions at the people's courts as permitted by law. The main duties of a shareholder is to contribute capital to the company and not to abuse its rights. For instance, if a shareholder abuses the status of the company as a legal entity or the limited responsibilities of a shareholder, and evades payment of its debts thus damaging the rights and interests of the creditors, the shareholder shall bear joint liability for the company's debts.
4. Legal representatives: The legal representative of a company is a member of its senior management, who must either be the chairman of the board, managing director or a manager of the company.
5. Supervisor: A supervisor is responsible for monitoring the finances of the company and the execution of company tasks by directors and senior management personnel. He or she must not be a director or manager.
6. Finance manager : A finance manager oversees the financial management, accounting and monitoring of a company. Strictly speaking, he or she must possess qualifications of and have worked for years as an accountant, with extensive financial work experience.
Refer to source: The Company Law of the People's Republic of China
In addition to the basic concepts, it is also necessary to understand the relationship between shareholders meetings, the board of directors and the board of supervisors:
In addition to the basic concepts, it is also necessary to understand the relationship between shareholders meetings, the board of directors and the board of supervisors:
Essentially, this organization structure is set up to facilitate internal operations and generate profit for the company. Considering that William is Australian and his friend is Chinese, what type of business entity should they be considering when setting themselves up as a Chinese-foreign joint venture?
Enterprise types
Currently, there are four common types of enterprises established in Shenzhen for foreigners or foreign enterprises:
Foreign-invested Limited Liability Company, Foreign-invested Partnership Enterprise,, Representative Office and Foreign-invested Joint Stock Company.
| Enterprise types | Definitions |
| Foreign-invested Limited Liability Company | A foreign-invested limited liability company refers to an enterprise wholly or partly invested by foreign investors and registered and established in China in accordance with Chinese laws. It includes sole proprietorship of natural person, sole proprietorship of enterprise legal person or foreign investment (non sole proprietorship). |
| Foreign-invested Partnership Enterprise | A partnership enterprise fefers to an enterprise established in China by two or more foreign enterprises or individuals, and a partnership enterprise established in China by a foreign enterprise or individual and a Chinese natural person, legal person or other organization. A foreign-invested partnership is composed of general partners and limited partners. |
| Representative Office | An administrative organization established in China that engages in non-profit activities related to the operations of the foreign company, and is the representative for the foreign company in activities such as communication, product marketing, market surveys, and technology exchange. |
| Foreign-invested Joint Stock Company | Foreign-invested founded joint stock company refers to an enterprise legal person whose total capital is composed of equal shares, the shareholders are responsible for the company with the shares they have subscribed for, the company is liable for the company's debts with all its properties, the shares of the company jointly held by Chinese and foreign shareholders, and the shares purchased and held by foreign shareholders account for more than 25% of the company's registered capital. [This type is rare and will not be described in details in this book] |
| 企业类型 | Pros | Cons |
| Foreign -invested Limited Liability Company | (1) The shareholders can own 100% equity and operate independently without having to consider the position of Chinese investors. The company can determine its own strategic goals and set up a company through joint venture; (2) Compared to the restricted operations of the representative office, a foreign-invested limited liability company can receive revenues in RMB and issue invoices; (3) No minimum registered capital requirements - shareholders may decide on an appropriate amount of registered capital according to the company’s future development needs. If the capital becomes insufficient later on for the company’s operation, it can be increased; (4) No currency restrictions for registered capital - in addition to the commonly used RMB, other foreign currencies (such as Hong Kong dollars / US dollars, etc.) may be used as for registered capital. |
(1) Allowed to be set up only as one single-member limited liability company. (2) A foreign-invested limited liability company must not only have a foreign shareholder, but it is also required to register its general manager, supervisor, finance manager and other personnel roles with the business registration authorities. |
| Foreign -invested Partnership Enterprise | (1) No need to be approved by the competent commercial department; (2) To appoint an executive partner (appointed representative) to carry out partnership affairs, the management organization is simple and flexible, and the decision-making efficiency is high; (3) No need to pay corporate income tax, avoiding double taxation, and effectively reducing the operating costs of enterprises. |
(1) In the catalogue of encouraged and restricted foreign-invested industries in the Catalogue for the Guidance of Industries for Foreign Investment, there are a number of industries that require no foreign investment partnerships be established; (2) The general partner shall bear unlimited joint and several liability for the debt of the partnership, and the limited partner shall be liable for the partnership debt to the limit of the amount of capital contribution he has subscribed, but the limited partner is prohibited by law from exercising the management right of the partnership |
| Representative office | (1) The capital contribution required is lower; (2) Allowed to conduct market surveys, project enquiries and other tasks for the foreign parent company. |
(1) Restricted in terms of commercial operations - a representative office is not allowed to conduct business, issue invoices, etc.; (2) Despite receiving no direct trade and sales income, it is required to pay corporate income tax, employees’ personal income tax, etc. |
Case Study
The following case studies will help you understand the differences between the three types of entities:
The questions raised by you are addressed on Shenzhen Government Online.
Q&A
Q：What is the process for updating the details of new shareholders/legal representatives of a foreign-invested limited liability company (including non-sole proprietorship)?
A：Scan the QR code for further details.。
Q：What is the process for updating the details of the new chief representative of a representative office?
A：Scan the QR code for further details.。
Q：What is the process for cancelling the registration of a foreign-invested limited liability company (including non-sole proprietorship)?
A：Scan the QR code for further details.
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Q：What is the process for cancelling the registration of a representative office?
A：Scan the QR code for further details.
After listening to the explanation by the professional start-up consultant EG, William now understands the basics for forming a start-up in China, and has determined the type of company suitable for his purposes according to the registration prerequisites. However, William is aware that he still knows very little about the tax and legal policies in China, and to register a company rashly without this knowledge is quite risky. Therefore he decides to learn more about these matters before starting the business.
Case Study 1:
Foreigner A is interested in exploring the lucrative consultancy market in China and would like to set up a consultancy company under his name in China. After operating very well for half a year, Foreigner A would like to develop software complementing his online consultancy business, which requires him to set up a technology company. Foreigner A needs to form a foreign-invested (non sole proprietorship) company with B (no limitation of nationality) or Company B (a foreign or Chinese enterprise), as he is not allowed to establish another foreign wholly-owned enterprise with himself as the only shareholder.
Case Study 2:
A foreigner can only set up one company in China of which he or she is the sole shareholder. If he or she wants to establish a second company, it must be a foreign-invested (non sole proprietorship) company.
Case Study 2:
A, who is Australian, and B, who is Chinese, are good friends interested in studying robots. They have decided to set up a partnership enterprise to start business together. A has a calm temper and can studymore calmly, while B is more comfortable with the development of the robot market, so B is the general partner to execute the partnership affairs, and A as a limited partner is responsible for robot research and development.
Case Study 3:
General partner has the right to manage the partnership, but bear unlimited joint and several liability for the debts of the partnership. Therefore, when establishing a foreign-invested partnership, it is necessary to carefully select investment partners and prevent investment risks in order to protect the legitimate rights and interests of all investors.
Case Study 3:
Company A (foreign company) is a major international electronics trading company. It has rented an office space in Huaqiangbei, Shenzhen, to expand the company’s business into the Chinese market. The company set up a representative office in Shenzhen, as it is still unfamiliar with the Chinese market at this early stage and has only a few employees. The registration of a representative office with the Market Supervision and Regulation Bureau of Shenzhen Municipality rests on the following conditions: It can only engage in business communication and enquiry activities for its parent company, and must not engage directly in any commercial operations.
Apart from this, what are the different requirements for the registration of the three types of enterprises?
A foreign-based company can apply to set up a representative office in Shenzhen. However, it must not conduct any business and is not allowed to issue any invoices.
Apart from this, what are the different requirements for the registration of the three types of enterprises?
| Enterprise types | Definitions |
| Foreign-invested Limited Liability Company | (1) A rented office in Shenzhen; (2) Sufficient start-up capital; (3) One legal representative (If the shareholder is a foreign natural person, he / she may act as the shareholder himself / herself, or concurrently serve as the executive director and general manager); (4) One supervisor (who cannot be a director or manager); (5) A finance manager and tax executive;(6) Recipient of legal documents (a Chinese natural person or Chinese enterprise). |
| Foreign-invested Partnership Enterprise | (1) A rented office in Shenzhen; (2) Sufficient start-up capital; (3) At least 2 partners(enterprise or individual); (4) If the executive partner is a company, an appointed representative shall also be established; (5) A credit certificate issued by the general partner;(6) A finance manager and tax executive;(7) Recipient of legal documents (a Chinese natural person or Chinese enterprise). |
| Representative Office | (1) One appointed chief representative (main officer in charge of the company);The company may appoint one to three representatives as required, but not more than four; (2) For companies that have been established for more than two years and have an office and residence overseas, the details of such office and residence may be shown as supporting evidence; (3) A bank account is required for the foreign company, where the bank’s proof of the company’s funds and credit may be shown as supporting evidence. |
To find out more details about registering a foreign-invested company, the telephone hotline, and offline locations for enquiry, please scan the QR code and visit Shenzhen Government Online to view the official guidelines.
Registration of foreign-invested partnership enterprise
Registration of foreign-invested partnership enterprise
What should I do if more partners join the business later? Or if I decide not to continue with the business, can I close the company?
The questions raised by you are addressed on Shenzhen Government Online.
Q&A
Q：What is the process for updating the details of new shareholders/legal representatives of a foreign-invested limited liability company (including non-sole proprietorship)?
A：Scan the QR code for further details.。
Q：What is the process for updating the details of the new chief representative of a representative office?
A：Scan the QR code for further details.。
Q：What is the process for cancelling the registration of a foreign-invested limited liability company (including non-sole proprietorship)?
A：Scan the QR code for further details.
Q：What is the process for cancelling the registration of a representative office?
A：Scan the QR code for further details.
After listening to the explanation by the professional start-up consultant EG, William now understands the basics for forming a start-up in China, and has determined the type of company suitable for his purposes according to the registration prerequisites. However, William is aware that he still knows very little about the tax and legal policies in China, and to register a company rashly without this knowledge is quite risky. Therefore he decides to learn more about these matters before starting the business.
Choosing the Right Company Type
Foreword
While attending the Boao Forum for Asia 2015 held at the Boao State Guest House in Hainan, President Xi Jinping stated during the Conference for Chinese and Foreign Entrepreneurs that China will be opening up further as its economy embraces a“new normal”. President Xi said that China’s policy for leveraging foreign investments, and the safeguards for the rights and interests of foreign corporations, will remain unchanged.
Driven by the globalization of the world’s economy, more foreign investors are now setting their sights on China. This chapter provides basic knowledge on tax and legal matters required for a start-up, as well as the supporting policies that foreign companies can benefit from in China. Our aim is to help foreign investors more easily integrate into the entrepreneurial environment in China and galvanize the growth of their companies.
Understanding the relevant laws and regulations governing the setting up of companies by foreigners in China is essential to running a start-up in China. With that knowledge, the owner of the start-up can then decide the enterprise type that is suitable for their own needs.
Driven by the globalization of the world’s economy, more foreign investors are now setting their sights on China. This chapter provides basic knowledge on tax and legal matters required for a start-up, as well as the supporting policies that foreign companies can benefit from in China. Our aim is to help foreign investors more easily integrate into the entrepreneurial environment in China and galvanize the growth of their companies.
Understanding the relevant laws and regulations governing the setting up of companies by foreigners in China is essential to running a start-up in China. With that knowledge, the owner of the start-up can then decide the enterprise type that is suitable for their own needs.
ReadingGuide
Common Enterprise Types
• Basic concepts for companies
· Foreign-invested Limited Liability Company
· Foreign-invested Partnership Enterprise
· Foreign-invested Joint Stock Company
· Representative Office
• Types of business entities and their registration requirements for foreign nationals
William D. Lin
Nationality : Australia
Number of years in Shenzhen : 1
Date established start-up : 2018
Profession : Computer programming
Hobbies: Reading, watching movies and travelling
Nationality : Australia
Number of years in Shenzhen : 1
Date established start-up : 2018
Profession : Computer programming
Hobbies: Reading, watching movies and travelling
Company vision
I was a computer programming major at university. After graduation, I joined the real estate industry at a time when various types of property apps were flourishing in China. Through my research, I found there were not that many property information apps of this kind in Australia. So I spotted an opportunity. Drawing on my personal experience, I began establishing a team to start building propertyselling and leasing apps, where AI technology is used to simulate cenarios that allow users to view foreign properties through videos.
EG
Occupation: Professional start-up consultant
Areas of expertise: Setting up of foreign companies, taxation for start-ups, policies for start-ups in Shenzhen, visa and immigration policies. etc.
Occupation: Professional start-up consultant
Areas of expertise: Setting up of foreign companies, taxation for start-ups, policies for start-ups in Shenzhen, visa and immigration policies. etc.
Having stayed in Shenzhen for half a year, William, who is from Australia, was speaking to a friend from China whom he has known for 20 years about starting an enterprise together. Despite having worked for a number of years in China, he was still unfamiliar with the procedures for setting up a company in China and the relevant official departments involved in the process. Therefore, the professional start-up consultant EG from Start-Up Guide introduced William to the following company terms:
1. Defining a company: A company is a corporate legal entity that possesses assets independently and holds property ownership. A company is fully liable for its debts with all its assets.
2. Registered capital: A company's registered capital is the capital of all its shareholders registered with the company registration authorities. If the full capital amount is not paid up during the capital contribution period, the company's registration may be cancelled, provided that the company has not accrued debts in its name.
3. Company shareholders: Shareholders are investors of a company and are entitled to receive returns on assets, participate in major decision-making and elect the managing executives of the company. A shareholder has the right to initiate legal actions at the people's courts as permitted by law. The main duties of a shareholder is to contribute capital to the company and not to abuse its rights. For instance, if a shareholder abuses the status of the company as a legal entity or the limited responsibilities of a shareholder, and evades payment of its debts thus damaging the rights and interests of the creditors, the shareholder shall bear joint liability for the company's debts.
4. Legal representatives: The legal representative of a company is a member of its senior management, who must either be the chairman of the board, managing director or a manager of the company.
5. Supervisor: A supervisor is responsible for monitoring the finances of the company and the execution of company tasks by directors and senior management personnel. He or she must not be a director or manager.
6. Finance manager : A finance manager oversees the financial management, accounting and monitoring of a company. Strictly speaking, he or she must possess qualifications of and have worked for years as an accountant, with extensive financial work experience.
Refer to source: The Company Law of the People's Republic of China
In addition to the basic concepts, it is also necessary to understand the relationship between shareholders meetings, the board of directors and the board of supervisors:
In addition to the basic concepts, it is also necessary to understand the relationship between shareholders meetings, the board of directors and the board of supervisors:
Essentially, this organization structure is set up to facilitate internal operations and generate profit for the company. Considering that William is Australian and his friend is Chinese, what type of business entity should they be considering when setting themselves up as a Chinese-foreign joint venture?
Enterprise types
Currently, there are four common types of enterprises established in Shenzhen for foreigners or foreign enterprises:
Foreign-invested Limited Liability Company, Foreign-invested Partnership Enterprise,, Representative Office and Foreign-invested Joint Stock Company.
| Enterprise types | Definitions |
| Foreign-invested Limited Liability Company | A foreign-invested limited liability company refers to an enterprise wholly or partly invested by foreign investors and registered and established in China in accordance with Chinese laws. It includes sole proprietorship of natural person, sole proprietorship of enterprise legal person or foreign investment (non sole proprietorship). |
| Foreign-invested Partnership Enterprise | A partnership enterprise fefers to an enterprise established in China by two or more foreign enterprises or individuals, and a partnership enterprise established in China by a foreign enterprise or individual and a Chinese natural person, legal person or other organization. A foreign-invested partnership is composed of general partners and limited partners. |
| Representative Office | An administrative organization established in China that engages in non-profit activities related to the operations of the foreign company, and is the representative for the foreign company in activities such as communication, product marketing, market surveys, and technology exchange. |
| Foreign-invested Joint Stock Company | Foreign-invested founded joint stock company refers to an enterprise legal person whose total capital is composed of equal shares, the shareholders are responsible for the company with the shares they have subscribed for, the company is liable for the company's debts with all its properties, the shares of the company jointly held by Chinese and foreign shareholders, and the shares purchased and held by foreign shareholders account for more than 25% of the company's registered capital. [This type is rare and will not be described in details in this book] |
| 企业类型 | Pros | Cons |
| Foreign -invested Limited Liability Company | (1) The shareholders can own 100% equity and operate independently without having to consider the position of Chinese investors. The company can determine its own strategic goals and set up a company through joint venture; (2) Compared to the restricted operations of the representative office, a foreign-invested limited liability company can receive revenues in RMB and issue invoices; (3) No minimum registered capital requirements - shareholders may decide on an appropriate amount of registered capital according to the company’s future development needs. If the capital becomes insufficient later on for the company’s operation, it can be increased; (4) No currency restrictions for registered capital - in addition to the commonly used RMB, other foreign currencies (such as Hong Kong dollars / US dollars, etc.) may be used as for registered capital. |
(1) Allowed to be set up only as one single-member limited liability company. (2) A foreign-invested limited liability company must not only have a foreign shareholder, but it is also required to register its general manager, supervisor, finance manager and other personnel roles with the business registration authorities. |
| Foreign -invested Partnership Enterprise | (1) No need to be approved by the competent commercial department; (2) To appoint an executive partner (appointed representative) to carry out partnership affairs, the management organization is simple and flexible, and the decision-making efficiency is high; (3) No need to pay corporate income tax, avoiding double taxation, and effectively reducing the operating costs of enterprises. |
(1) In the catalogue of encouraged and restricted foreign-invested industries in the Catalogue for the Guidance of Industries for Foreign Investment, there are a number of industries that require no foreign investment partnerships be established; (2) The general partner shall bear unlimited joint and several liability for the debt of the partnership, and the limited partner shall be liable for the partnership debt to the limit of the amount of capital contribution he has subscribed, but the limited partner is prohibited by law from exercising the management right of the partnership |
| Representative office | (1) The capital contribution required is lower; (2) Allowed to conduct market surveys, project enquiries and other tasks for the foreign parent company. |
(1) Restricted in terms of commercial operations - a representative office is not allowed to conduct business, issue invoices, etc.; (2) Despite receiving no direct trade and sales income, it is required to pay corporate income tax, employees’ personal income tax, etc. |
Case Study
The following case studies will help you understand the differences between the three types of entities:
The questions raised by you are addressed on Shenzhen Government Online.
Q&A
Q：What is the process for updating the details of new shareholders/legal representatives of a foreign-invested limited liability company (including non-sole proprietorship)?
A：Scan the QR code for further details.。
Q：What is the process for updating the details of the new chief representative of a representative office?
A：Scan the QR code for further details.。
Q：What is the process for cancelling the registration of a foreign-invested limited liability company (including non-sole proprietorship)?
A：Scan the QR code for further details.
Q：What is the process for cancelling the registration of a representative office?
A：Scan the QR code for further details.
After listening to the explanation by the professional start-up consultant EG, William now understands the basics for forming a start-up in China, and has determined the type of company suitable for his purposes according to the registration prerequisites. However, William is aware that he still knows very little about the tax and legal policies in China, and to register a company rashly without this knowledge is quite risky. Therefore he decides to learn more about these matters before starting the business.
Case Study 1:
Foreigner A is interested in exploring the lucrative consultancy market in China and would like to set up a consultancy company under his name in China. After operating very well for half a year, Foreigner A would like to develop software complementing his online consultancy business, which requires him to set up a technology company. Foreigner A needs to form a foreign-invested (non sole proprietorship) company with B (no limitation of nationality) or Company B (a foreign or Chinese enterprise), as he is not allowed to establish another foreign wholly-owned enterprise with himself as the only shareholder.
Case Study 2:
A foreigner can only set up one company in China of which he or she is the sole shareholder. If he or she wants to establish a second company, it must be a foreign-invested (non sole proprietorship) company.
Case Study 2:
A, who is Australian, and B, who is Chinese, are good friends interested in studying robots. They have decided to set up a partnership enterprise to start business together. A has a calm temper and can studymore calmly, while B is more comfortable with the development of the robot market, so B is the general partner to execute the partnership affairs, and A as a limited partner is responsible for robot research and development.
Case Study 3:
General partner has the right to manage the partnership, but bear unlimited joint and several liability for the debts of the partnership. Therefore, when establishing a foreign-invested partnership, it is necessary to carefully select investment partners and prevent investment risks in order to protect the legitimate rights and interests of all investors.
Case Study 3:
Company A (foreign company) is a major international electronics trading company. It has rented an office space in Huaqiangbei, Shenzhen, to expand the company’s business into the Chinese market. The company set up a representative office in Shenzhen, as it is still unfamiliar with the Chinese market at this early stage and has only a few employees. The registration of a representative office with the Market Supervision and Regulation Bureau of Shenzhen Municipality rests on the following conditions: It can only engage in business communication and enquiry activities for its parent company, and must not engage directly in any commercial operations.
Apart from this, what are the different requirements for the registration of the three types of enterprises?
A foreign-based company can apply to set up a representative office in Shenzhen. However, it must not conduct any business and is not allowed to issue any invoices.
Apart from this, what are the different requirements for the registration of the three types of enterprises?
| Enterprise types | Definitions |
| Foreign-invested Limited Liability Company | (1) A rented office in Shenzhen; (2) Sufficient start-up capital; (3) One legal representative (If the shareholder is a foreign natural person, he / she may act as the shareholder himself / herself, or concurrently serve as the executive director and general manager); (4) One supervisor (who cannot be a director or manager); (5) A finance manager and tax executive;(6) Recipient of legal documents (a Chinese natural person or Chinese enterprise). |
| Foreign-invested Partnership Enterprise | (1) A rented office in Shenzhen; (2) Sufficient start-up capital; (3) At least 2 partners(enterprise or individual); (4) If the executive partner is a company, an appointed representative shall also be established; (5) A credit certificate issued by the general partner;(6) A finance manager and tax executive;(7) Recipient of legal documents (a Chinese natural person or Chinese enterprise). |
| Representative Office | (1) One appointed chief representative (main officer in charge of the company);The company may appoint one to three representatives as required, but not more than four; (2) For companies that have been established for more than two years and have an office and residence overseas, the details of such office and residence may be shown as supporting evidence; (3) A bank account is required for the foreign company, where the bank’s proof of the company’s funds and credit may be shown as supporting evidence. |
To find out more details about registering a foreign-invested company, the telephone hotline, and offline locations for enquiry, please scan the QR code and visit Shenzhen Government Online to view the official guidelines.
Registration of foreign-invested partnership enterprise
Registration of foreign-invested partnership enterprise
What should I do if more partners join the business later? Or if I decide not to continue with the business, can I close the company?
The questions raised by you are addressed on Shenzhen Government Online.
Q&A
Q：What is the process for updating the details of new shareholders/legal representatives of a foreign-invested limited liability company (including non-sole proprietorship)?
A：Scan the QR code for further details.。
Q：What is the process for updating the details of the new chief representative of a representative office?
A：Scan the QR code for further details.。
Q：What is the process for cancelling the registration of a foreign-invested limited liability company (including non-sole proprietorship)?
A：Scan the QR code for further details.
Q：What is the process for cancelling the registration of a representative office?
A：Scan the QR code for further details.
After listening to the explanation by the professional start-up consultant EG, William now understands the basics for forming a start-up in China, and has determined the type of company suitable for his purposes according to the registration prerequisites. However, William is aware that he still knows very little about the tax and legal policies in China, and to register a company rashly without this knowledge is quite risky. Therefore he decides to learn more about these matters before starting the business.
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