Company registration with the entire spectrum of services in China.
Consulting company “Red Dolphin” specializes in delivering quality services in the field of company’s registration in China, and regular support. Our experts help you choose the registration form (WFOE, JV, RO) and business scope, and obtain the needed legal and accounting support.
For the past 40 years the world has observed unprecedented economic growth in China through skillful use of their unique demographic and geographic features. These characteristics attract more entrepreneurs to China, however due to legal issues, running your own business in the PRC is a very complicated and scrupulous process. Even though over several past years, the Government has taken steps in meeting with and listening to entrepreneurs, many still face difficulties in running a business in China.
Experts at “Red Dolphin” have great experience in running a business in China. We are up to date on all the news in the field of economics and regulation changes that can affect the prospects of a foreign entrepreneur in China, and the main goal of our employees is to help you avoid unnecessary stress while running a business in China.
Detailed information on the registration of companies and answers to the most frequently asked questions are presented below the price list.
Services of “Red Dolphin” for registration and promotion of business in China:
Company registration cost in Beijing
|Name of the service||Cost|
|Company registration (WFOE)||3000$|
|Registration of representative office (RO)||3000$|
|Registration of joint venture in China (JV)||3000$|
|Company registration in Hong Kong (offshore zone)|
· Company registration cost
· Selection of company business scope
· Paperwork of all required documents
· Obtaining business license
· Obtaining company stamps
· Registration in the Trade Commission
|· Selecting a physical address||equals to the monthly rental cost of a specific premises|
|· Selecting a legal address||By request|
|· Accounting in Chinese language||From 200 USD/month|
|· Accounting with following consulting in English language||From 380 USD/month|
|Bank account opening|
|· In the recommended bank||200 USD|
|· In the bank requested by client||300 USD|
|Annual reports||1500 USD|
|· Annual reports to the Administration of Industry and Commerce|
|· Annual audit of a company with foreign capital (Municipal Bureau of Commerce, Ministry of Finance, the General Administration of Quality Control, Statistical Office, Administration of Exchange Control)|
|· Declaration on payment of income tax|
|· Obtaining an export-import license (in case of obtaining a license in a package with company registration – 550 USD)||1000 USD|
|· Development of a contract templates package and legal model for services you plan to offer in a legal way (3 contract-package)||500 USD|
|· Registration of the company in the Ministry of Labor system for subsequent registration of employees||200 USD|
|· Legal support||By request|
|· Trade mark registration||By request|
|· Copyright and patent registration||By request|
|· Hiring and Employment||By request|
|· Employment contract preparation||300 USD|
|· Visa Services||By request|
|Company registration in other cities of China||By request|
*For the up to date prices, please contact our consultant
The founder (investor of the company) can be both a legal entity and an individual. If the investor is an individual, there can be one or several people at the same time. However, at any circumstances, during a company registration process at least 2 people’s documents are required. The reason is that there has to be a supervisor in a company structure, who can have no duties and no shares in the business but has to be mentioned in the company structure from the moment of registration.
It is not required to be in China at the time of company registration. In addition, if you are a company owner you do not have to be its general manager or registered as a company employee in its structure.
Required documents for company registration, if you are on the territory of the PRC:
- A copy of the first page of an international passport;
- A copy of a Chinese visa and an entry stamp (both pages).
It`s required to sign the copies with your own signature next to the pictures
If you or a founder/investor are not on the territory of PRC, the legalized copy of an international passport is required.
Up to 4 (four) foreign employees can apply to one company.
Company founders are responsible for all the employees in a company and for all the business, which are implemented on behalf of the company.
Company registration cost
Vary depending on the city where the company is registered. For more information, please contact our consultant.
The difference between legal and physical address
- You can open a bank account only in certain banks;
- There are some risks in case of a high monetary and visa activity. There can be a problem upon the migration bureau, bank or tax bureau inspection;
- Cheap cost.
A physical address is needed when the company passes inspections by the relevant authorities:
- Company bank account opening (checked by a bank employee);
- Tax bureau of PRC;
- Migration bureau of PRC;
The absence of a physical address puts at risk the actual existence of your company.
- The company can be registered for 30 years or indefinitely;
- The share capital must be paid before the closure of the company;
- The share capital is not necessarily to be provided immediately;
- In case of judicial claims against the company, the court has the right to fine the company in the amount equal to its share capital, but no more.
The total amount of the share capital – depends on the decision of the founder:
- 100 000 RMB – can hire up to 2 employees;
- 1 million RMB – can hire up to 4 employees;
- The share capital is not necessarily instantly established at the company account;
- Possibility to change the amount of share capital and business scope of company in the future;
- There are prohibited business activities for a Whole Foreign-Owned Enterprise (WFOE or WOFE).
VAT (value-added tax) – is paid according to the opened fapiao (invoice) – 3% (for the small-scale taxpayer)
Profit tax – (is paid according to the company’s actual profit) – ranges:
- 5 % if the profit of less than 1 000 000 RMB;
- 10 % if the profit is from 1 000 000 to 3 000 000 RMB;
- 25 % if the profit is higher than 3 000 000 RMB.
The company’s actual profit is the difference between the income and expense of the company.
Income tax (is paid from employees’ salaries) is progressive in China and accounted by using a difficult formula (the higher the salary, the higher the tax); specifically the income tax can be checked on the internet, for example, on this website https://www.gerensuodeshui.cn/.
To set an example, if the salary of an employee is 6000 RMB, the income tax is 30 RMB per month.
If the salary is less than 5000 RMB – no tax (the minimum untaxable income).
As a the general director, you do not have to pay the salary to yourself and, respectively, do not have to pay the tax.
The cost of company services for the next year
Annual reports – prices vary depending on the city. For more information, please contact our consultant.
If you are planning to work on behalf of the company, we recommend considering the list of possible additional options, such as:
- Development of a contract templates package and legal model for services you plan to offer in a legal way – 500 USD (3 contract-package). Each extra contract is drafted separately upon the request for additional charge – 100 USD/1 contract;
- Registration of the company in the Ministry of Labor system for subsequent registration of employees – 200 USD.
- Registration of representative office in China.
Any legal entity abroad can be an investor in a newly created company in China, one or several legal entities allowed. There is a possibility to apply not only for a legal entity but also for an individual entity as well. Legalization of all necessary documents from the company will be required.
- Registration of the company in China as a new organization. What is the difference between the two types?
There is an option to register a representative office, but this is a useless structure. This option rather fits companies with a massive capital, such as “Gazprom” and “Rosneft”, with a huge contracts and projects. Also all the expenses are under taxation, so commercially it is an unprofitable division. There is no difference; a person may choose to be an individual as an investor or legal entity. The difference is only in the establishment of the share capital, investor is the one who contributes the capital, if it is an individual, from his private account from outside of China, if he is a legal entity, it comes from a legal entity.
- How many activities can be included in company’s business scope?
As many as you want to apply for and you are able to apply for additional ones in the future if some were rejected for the first time.
- What are the standard forms for legal entities, amount of share capital, citizenship of the founders, the assignment of general manager and general accountant, is it mandatory for residents to participate as founders or one of the above-mentioned roles in the company.
The share capital can be in any amount, there are no requirements for citizenship of the owners, mandatory is assignment of not less than two people, one as a general manager and another as a supervisor in the company’s structure from the moment of registration. Neither assignment of general accountant nor participation of Chinese resident if required for establishing a company in China.
- Possibility to provide an invitation for a work visa to foreign citizens.