Choose the right business scope so that you can register with the right company structure and avoid the risk of future disputes with the government. If you operate a business which is not included within your business scope, you’ll more than likely face a variety of issues. It should be noted that in order to obtain approval for encouraged industries, which may mean financial advantages, approval must be obtained from the national development and Reform Commission (NDRC) or its provincial branches.
NIKO will advise you how to write your Business Scope if you need
Notice: Different types of companies need different documents when registering. For example, if you plan to start a trading company, you must register with your actual address. If you are registering a food company, a food license is essential
Shareholder Structure
This includes your Board Members Nomination, Supervisor Nomination, Legal Representative Nomination, etc.
You will also have to decide on the board members of your company. You will need at least THREE (3) people. There is no restriction to whom you can set as a board member, although many companies often choose their shareholders. Alternatively, you could decide to not have a board and nominate only a Board Executive Chairman, once again with no restriction as to who you appoint. Your company Supervisor also needs to be nominated. You need at least one supervisor or a supervisory board (at least 3). Supervisors cannot be members of the board referenced above. For more information, you can consult NIKO.
Registered Capital
The company no longer needs to hire an accounting firm to verify capital and registered paid in capital. In addition, the minimum registered capital is no longer required for the establishment of enterprises in China.
For strategic reason using a higher registered capital can attract potential clients. Therefore, an extremely low level of registered capital is not recommended.
Since 2016, for WFOEs with a scope of business of consulting, trading, retailing, or information technology, there is no paid-up capital required.
Passport/Business License
You will have to provide your passport, Chinese ID, and/or business license of companies which are either shareholders, board members, supervisor and/or legal representative of the company.
Some local governments may require a face to face authentication when applying for a new company. The policies of each city are different. For details, you can consult NIKO!
Business License Application & Company Seal
To get an approval certificate and business license, you will have to deal with two different government entities. First, you must go to the Ministry of Commerce (MOFCOM) for an approval certificate. After you have submitted your application, they should let you know if you have been approved or not, and give you your approval certificate, within 90 days.
After obtaining the approval certificate, you have 30 days to register with the State Administration for Industry and Commerce and apply for the business license. The date of incorporation of the company will be the same as the date of issuance of your business license.
Your company seal can be obtained after receiving your business license.
Business License Record
After registering your company and getting your business license, you still need to register it. People often forget to do this step and may undergo problems when applying to open bank accounts or other licenses, such as an Import & Export license