Common issues regarding setting up foreign-funded Chinese companies

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Wholly foreign-owned enterprises, Sino-foreign joint ventures, Sino-foreign cooperative enterprises, and foreign-invested partnership enterprises can be established.

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Capital contributions can be made in cash, as well as in the form of property, factory buildings, machinery, equipment or other materials, industrial property rights, specialized technology, and site use rights.

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Yes. Enterprises must apply for permit and filing with relevant departments and obtain import and export rights before conducting import and export business.

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The setting up process for foreign-funded enterprises is as follows:

● Name pre approval.

● Applying for a business license from The Administration for Industry and Commerce and filling out a foreign investment information report.

● Engraving company seal in Public Security Bureau.

● Bank account opening (including RMB basic account and foreign currency capital account).

● Foreign Exchange Certificate.

● Recruitment and employment procedures for overseas personnel.

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The materials that need to be notarized include:

● Business profile certificate, company certificate, etc. of foreign-invested enterprises.

● If the foreign investor is an individual, a notarized ID card or passport is required.

After being notarized by a local lawyer, the above proof must be authenticated by the Chinese Embassy in the local area; The certification of enterprises in Hong Kong and Macau must be notarized by a notary public commissioned by China.

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The legal representative of foreign-funded enterprises has no nationality restrictions and is usually held by the chairman or executive director.

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Yes, but information such as shareholder or board resolutions must be provided.

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The conditions are as follows:

● The expiration of the operating period stipulates in the enterprise contract/ articles of association, or the occurrence of other dissolution reasons stipulated in the company contract/articles of association, enterprise merger, division and dissolution, or the enterprise being declared bankrupt or ordered to close down in accordance with the law.

● Resolution of shareholders or board of directors.

● Enterprise liquidation team.

● Publish a liquidation announcement in municipal newspapers or the national , credit information disclosure system.

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Sure.

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Foreign investors only need to invest a capital that is suitable for the company's business scale. The capital for the trade wholesale and retail industry is usually 500000 yuan, while for the general retail industry, it is 100000 yuan.

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The offices of foreign representative offices are usually located in commercial office buildings such as office buildings, commercial and residential buildings, and business centers, without the need to rent foreign-related office buildings designated by the Public Security Bureau.

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The following documents must be submitted:

● Application for Set Up of Establishment of Permanent Representative Offices of Foreign (Regional) Enterprises signed by the legal representative of the head office.

● Foreign enterprise formation certificate.

● Bank credit certificate.

● ID card of the Chief Representative/Permanent Representative.

● Lease or property certificate proof.

● Documents certified by the Chinese Embassy in the local area.

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The following content should be included:

The company has opened an account with a bank for a certain period of time, with evaluation terms such as good operation, normal transactions, and no negative records, as well as deposit amounts.

If the bank credit certificate is in a foreign language, a translated version must be submitted and stamped by the translation company.

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It does not exceed the operating period of the headquarters, and an extension can be applied for within 60 days before the expiration.

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Sino-foreign joint ventures have no restrictions on the proportion of foreign investment, which can be agreed upon by both parties themselves.

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Sure. After unanimous approval by the shareholders or board of directors, it shall be submitted to the original approval department for approval in accordance with relevant regulations.