5 Must Knows About Incorporating A Company In China

Today, I will guide you through the 5 things you need to know about registering your own company in China.

You should definitely seek a professional to aid you in this process, as it will save you a lot of time and trouble down the road. After watching this video, you will understand the basics and find out whether the agency or law firm you are going to hire for the job actually knows what he is doing or not.

Without further ado, let’s jump straight into the 5 aspects, which are Shareholders, Registered Capital, Articles of Association, Company Name and Registered Address.

If you are going to incorporate a limited company, the bosses of the company will be named shareholders, and if you are going to incorporate a partnership, they will be called partners. The minimum amount of shareholders or partners is 1, while the maximum is 50. More information on how to allocate shares and what can be used as investment will be shared in later videos as this is a huge topic on its own.

Registered capital is the amount of money you will invest into the business. This amount will be public information and shown on your business license and government websites. All you need to know for now is that this amount does not need to be paid up front and is totally flexible, so don’t sweat it too much if you do not have too much money in your pocket right now.

The articles of association are the laws of a company. It includes important details like when the registered capital has to be paid up, what industry the company should specialize in, how many votes are needed to fire the director and how often a shareholders meeting has to be held.

The company name has to be in a set format of PLACE + NAME + INDUSTRY + TYPE. An example would be Shenzhen LM Consulting Limited. Another accepted format would be NAME + (PLACE) + INDUSTRY + TYPE, so in this format, it would be LM (Shenzhen) Consulting Limited.
You can either use a business address, which means that you buy the rights to use an address for registration purposes only, or actually rent an office. The first option will be much cheaper, and it will be a better choice for online businesses as you can work from home for a consulting, trading or Amazon business. However, if you plan to open up a restaurant or bar, obviously you will need to rent a place to open shop.