Guangzhou Corporate Formation, Company Registration, Business Set Up Services In Guangzhou

 

Guangzhou is the capital of Guangdong Province, a national historical and cultural city, a National Central City, an international business center and an integrated transport hub. As the south gate of China, it is located in the geometric center of Asian-Pacific area, adjacent to the South China Sea, Hong Kong and Macao. With a total area of 7,434 km2, it has a population of over 16 million. For more than 2,000 years, Guangzhou, known as the Millennial Commerce Capital, has always been China's important trading port and the origin of ancient Maritime Silk Road.

 

To facilitate people who want to invest and set up business in Guangzhou, here is an introduction of Types of business presence in China: 

 

Before starting up a business in China, you have to know what are the options. Foreign Investors generally establish a business presence in China in one of five modes: Wholly Foreign Owned Enterprise(WFOE); Representative Office; Foreign Invested Partnership Enterprises (FIPE); Joint Venture and Hong Kong Holding Company.

 

Company Name of Guangzhou Company
The name of Guangzhou Company should be in the form of Administrative division (Guangzhou) + Trade Name + Sector Expression +Limited. Each enterprise shall use only one name and not be the same with or similar to the registered name in the same industry. If the word “China” is within the company name, it is required to be pre-approved by AIC at national level in Beijing.
 

Business Scope
Business scope is one of the most important issues in FIE registration application, divided into the licensed business item and the general business item. Licensed business item means a pre-approval is needed before business license application. Guangzhou Foreign Invested Enterprise can only conduct business within its approved business scope, which ultimately appears on the business license. There is some connection between business scope and register capital. Generally speaking, larger register capital, more business items can be approved.


Shareholder, Director and Manager, Legal Representative, Supervisor
1. Shareholder must be Chinese natural person or legal entity.
2. Director and Manager can be the same person, acted by shareholder, non-shareholder.
3. Legal representative is a person in charge of corporate operation, management and development, responsible for all the legal affairs arising from the running of the business, acted by director, manager, shareholder or non-shareholder.
4. Supervisor shall not serve concurrently as legal representative and senior management, acted by shareholder, non-shareholder. Supervisor’s duty is that check the company’s financial condition; supervise executives’ behavior of performing his duties, propose suggestions on dismissing any director or senior manager whose behavior is contrary to laws and regulations.


Documents Required
Company Name of Guangzhou Company;
Determine shareholder, business scope;
Determine register capital, shares allocation proportion;
Office address in China, 2x original leasing contracts, 2x copies of house property certificate;
with company stamp or signature of lesser and 2x landlord identification documents;
ID Copy of Shareholder, Director, Legal Representative, Supervisor.

 

Working Time Needed
(1) Manufacturing enterprise: 20-40 working days (the time of approval papers application from the fire & environmental protection bureaus is not included);
(2) Trading& Service enterprise: 10-15working days.
Guangzhou Company Registration Service
Guangzhou Company Business License;
Having a corporate seal engraved by the public security authorities;
Seal Carving Registration card;
Organization Code Certificate;
Digital Certificate of Organization Code Certificate;
National Tax and Local Tax Certificates;
Assist bank opening, but not including the bank charges;
Three stamps (company stamp, financial stamp and personal stamp of legal representative).


General Tax Information
All enterprises are required to report to the Tax Administration Department monthly, quarterly and annually. TCBC provides accounting services for our clients; you are welcome to contact us for more information.


Annual Audit Report
Any limited companies in China should summit annual audit report to the relevant authorities. Any company will be subject be to a fine if the Annual Audit Report is not submitted in a timely manner.
 

 

Contact Tom Lee for business set up in Guangzhou now.

 

The complete guideline to set up business WFOE company registration in Guangzhou

 

Guangzhou is the capital of Guangdong Province, a national historical and cultural city, a National Central City, an international business center and an integrated transport hub. As the south gate of China, it is located in the geometric center of Asian-Pacific area, adjacent to the South China Sea, Hong Kong and Macao. With a total area of 7,434 km2, it has a population of over 16 million. For more than 2,000 years, Guangzhou, known as the Millennial Commerce Capital, has always been China's important trading port and the origin of ancient Maritime Silk Road.

 

 

Definition of WFOE

The Wholly Foreign Owned Enterprise (WFOE) is a limited liability company wholly owned by the foreign investor(s).The foreign investor(s) can be a nature person or a legal entity. Investor(s) from Hong Kong, Macau, Taiwan is also defined as the foreign investor(s).

 

Company Name

Company name of     WFOE consists of four parts which are administrative division, name, Industry expression and limited. Your company name must be unique in the same industry and administrative division .Company name is related to register capital and business scope. For some sectors such as education, logistics, medicine and food industries, a special pre-approved license is needed. Only with 10 million, the word Guangdong can be registered. If the word “China” is within the company name, it is required to be pre-approved by SAIC (State Administration for Industry and Commerce).

 

Company Business Scope

One of the most important issues in WFOE application is business scope. Business scope needs to be defined and the WFOE can only conduct business within its approved business scope, which ultimately appears on the business license. Any amendments to the business scope require further application and approval.

 

Registered Capital and Paid-Up Capital

Registered capital is the amount that it’s required to run the business until it can break even - the 'minimum registered capital' is a guideline only. The amount of registered capital needed depends on factors like industry, scope of business and location. Generally speaking, for manufacturing and trading enterprise, the registered capital is required RMB 1 million or above. For service enterprises, such as consultancy, technology, market research and development, the registered capital is usually required RMB 500, 000 or above. Once the business license is issued, 15% of the registered capital should be paid up during 3 months, with the balance being remitted within 2 years. All of the registered capital can be paid in one time or several times, fewer times, fewer capital verification fees are needed.

 

 

Shareholder, Legal Representative, Supervisor, Director and Manager

1.      A shareholder could be a nature person (foreign individual) or a legal entity (foreign company)

2.      The legal representative represents the interests of the enterprise as a legal person，exercises legal right in accordance with the will of the enterprise. An enterprise as a legal person endows the legal representative with authority, assumes civil liability for the normal activities of legal representative.

 

 

3.      Supervisor’s duty is that check the company’s financial condition; supervise executives’ behavior of performing his duties, propose suggestions on dismissing any director or senior manager whose behavior is contrary to laws and regulations, articles of incorporation or     shareholder meeting resolution, etc.

4、Directors, the manager and financial officers shall not serve concurrently as supervisors，while the director, the manager and legal representative could be the same person.

 

 

Documents Required

1、3x original Certificate of Incorporations, Articles of Incorporation or Equivalent document notarized by local lawyer and endorsed by Chinese embassy or consulate. For individual investor: 2x original Passport copies of Investors need be notarized by local lawyer and endorsed by Chinese embassy or consulate.

2、2x original Bank Reference Letters from investor’s bank (declare a good standing)

3、The latest annual audit report copy from the parent company provided by a Certified Public Accountant (CPA) (For the parent company established over one year)

4、Office address in China, 2x original leasing contracts, 2x copies of of house property certificate with company stamp or signature of lesser and 2x landlord identification documents  (The lessee should be acted by legal representative or investor. The area is required no less than 30 ㎡ and for commercial use only with more than one year’s rent and the lease contract should be endorsed by local Housing Management Authority)

5、Passport copy or ID card of: (i) Parent company's director (ii) Guangzhou Company's Legal Representative (iii) Guangzhou Company's supervisor (iv) Guangzhou Company's director and (v) Guangzhou Company's manager

6、Guangzhou Company's Legal Representative provides: 6 photos (2 inches size),

7、Registered capital; Business Scope; 6 proposed Chinese names of Guangzhou Company

 

 

Government Processing Procedure

1、Name registration with Guangzhou Administrative Bureau of Industry and Commerce

2、Approval application from the Fire and Environment Bureau for manufacturing industry

3、Pre-approval for some special industries

4、Certificate of Approval issued by Bureau of Foreign Trade and Economic Cooperation of Guangzhou Municipality

5、Business License issued by Guangzhou Administrative Bureau of Industry and Commerce (GZABIC).

6、Apply for stamps with the Public Security Bureau

7、Organization Code License issued by Quality and Technical Supervision Bureau

8、Tax Certificates issued by National & Local Tax Bureau

9、Foreign Exchange Registration Card issued by State Administration of Foreign Exchange (SAFE)

 10、Apply for the permits for the bank account opening，open foreign currency and RMB account

 11、Financial Registration Certificate issued by Finance Bureau

 

 

Processing Time for WFOE

1、Manufacturing enterprise: 50-70 working days (the time of approval papers application from the fire & environmental protection bureaus is not included)

2、Trading and service enterprise: 50-80 working days

 

Service, Fee and Terms of Payment
1、TCBC package services for WFOE formation include:
Company name check and confirmation；Document preparation for application purposes, such as a feasibility study report, M&A, etc.；Certificate of Approval；Business License；Having a corporate seal engraved by the public security authorities; Organization Code Certificate ；Digital Certificate of Organization Code Certificate；National Tax Certificate；Local Tax Certificate；Foreign Exchange Registration Certificate；Assist bank opening, but not including the bank charges；Permit of bank account opening；Finance Registration Certificate；Company stamp, financial stamp and personal stamp of legal representative. All the certificates above include original one and duplicate one.

2: Terms of payment: applicant can pay by cash, check or T/T to TCBC’s bank account before the service begins.

 

General Tax Information

All enterprises are required to report to the Tax Administration Department monthly, quarterly and annually. TCBC provides accounting services for our clients; you are welcome to contact us for more information.

 

Annual Audit report  

Any limited companies in China should summit annual audit report to the relevant authorities. Any company will be subject be to a fine if the Annual Audit Report is not submitted in a timely manner.

 

Follow-Up Service of WFOE

1、Apply Capital Verification Report with Certified Public Accountant (CPA) (after Inject capital from investor’s overseas bank account).

2、Business license alteration

3、Import and export license application

4、General tax payer application

TCBC provides a series of business follow-up services such as, monthly bookkeeping and tax return, internal auditing, financial planning and tax layout, and China policy & market study. Other services include domain name registration, webpage design, website promotion, China trademark registration, Work Permit, Residence Permit, etc.

 

 

Contact Tom Lee to set up business in Guangzhou 

Guangzhou to develop rail transit into pillar industry

 Southern China's Guangzhou has issued a three-year plan to develop its rail transit industry, vowing to expand its scale to 120 billion yuan (17.8 billion U.S. dollars) by 2021, and realize an output value of 180 billion yuan by 2023.

The city's development and reform commission said Tuesday that the rail transit industry, due to its capital and technology-intensive features, and huge market potential, has become one of the city's priorities.

According to the plan, the city government will promote its major equipment manufacturing capacity, develop standard vehicles with independent intellectual property rights, and build an industrial park and maintenance and manufacturing bases.

A world-class inter-city rail transit network will also be developed in the Guangdong-Hong Kong-Macao Greater Bay Area, said Ding Jianlong, president of Guangzhou Metro Group.

Guangzhou further promotes business environment reform, set up company,corporate formation in Guangzhou

 

Guangzhou government issued a document on Several Measures for Further Optimizing the Business Environment in Guangzhou in early April to further implement the reform of the business environment.

 

The document covers 43 measures in total, including building an intelligent government affairs platform, striving for two national pilot demonstration areas, and carrying out crucial projects to improve the business environment in 10 key areas, such as the establishment of enterprises, the handling of building permits, real estate registration, payment of taxes, cross-border trade, access to credit and intellectual property protection.

 

People deal with their businesses through the intelligent government affairs system. [Photo/Nanfang Daily]

 

The intelligent government affairs platform aims to achieve the sharing of government data, the integration of corporate approvals and establish a connection between government services and required data.

 

Based on the platform, Guangzhou will implement the joint examination and approval of electric, water and gas external line projects, and comprehensively integrate planning, housing construction, public security, transportation, municipal, water and other enterprise-related approval matters by the end of April.

 

The city will also realize online services in key areas and for high-frequency issues by the end of June, integrating the service windows of government departments into one comprehensive window to handle issues easily by the end of December.

 

People consult and handle business at the comprehensive windows. [Photo/Nanfang Daily] 

The document demands the promotion of Guangzhou High-tech Zone to a national business environment reform and innovation experimental zone and of Nansha Free Trade Zone to a national business environment reform special zone, as well as a cooperation demonstration zone for the Guangdong-Hong Kong-Macao Greater Bay Area.

 

The Guangzhou High-tech Zone and Nansha Free Trade Zone will establish open and interoperable regional innovation systems, gather innovative elements to attract and connect global innovation resources, and promote effective integration with Hong Kong and Macao commercial systems, industry supervision, and urban planning and construction. 

Among all the crucial projects, water, electricity and gas access are the most concerning issues for enterprises and citizens. The document makes clear that the processing time for high-voltage power access shall not exceed 15 working days, and the processing time for low-voltage power access shall not exceed 3 working days; the total administrative time for water installation reporting shall not exceed 14 working days; and the total time for administrative approval of gas access projects will also not exceed 14 working days.

 

In addition, the document mentions that the start-up time of an enterprise will be reduced to 2.5 working days in 2019, and to two working days in 2020.

 

To facilitate people who want to invest and set up business in Guangzhou, here is an introduction of Types of business presence in China: 

 

Before starting up a business in China, you have to know what are the options. Foreign Investors generally establish a business presence in China in one of five modes: Wholly Foreign Owned Enterprise(WFOE); Representative Office; Foreign Invested Partnership Enterprises (FIPE); Joint Venture and Hong Kong Holding Company.

 

Wholly Foreign OwnedEnterprise (WFOE) is a Limited liability company wholly owned by the foreign investor. WFOE requires no registered capital and it's liability of equity , can generate income, pay tax in China and it's profit could be repatriate back to investor's home country. Any enterprise in China which is 100 percent owned by a foreign company or companies can be called as WFOE.

 

Representative Office (RO) is aLiaison Office of it's parent company. It requires no registered capital. It's activities would be: product or service promotion, market research of it's parent company's business, Quality Control liaison office etc in China. RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China.

 

Joint Venture (JV) is a Limitedliability company formed between Chinese investor and Foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc.

 

Since March 1, 2010: Measures ofEstablishment of Foreign Invested Partnership Enterprises (FIPE) in China is taking effect. The regulation, which take effect since March 1, 2010, are known as the Administrative Measures for the Establishment of Partnership Enterprise in China by Foreign Enterprises or Individuals. There's no required minimum registered capital for a Foreign Invested Partnership Enterprise (FIPE) in Shanghai, Beijing, Guangzhou, Shenzhen, Hangzhou and rest cities of China

 

Hong Kong Company usually been used as a Special Purpose vehicle (SPV) to invest Mainland China. Hong Kong is one of the quickest locations to Incorporate a business. Although a HK company is not a legal entity in Mainland China (Mainland China and Hong Kong, See Wiki 1 country, 2 systems), lots foreign investors, especially investors from Europe and North America still chose to setting up a Hong Kong company as SPV to invest China.

 

After China's entry to WTO, most industries in China welcome foreign investment, WFOE setting up in Chinabecomes the first option of foreign investment's entity structures instead of Rep. Office setting up in China. At the mean time, for tax purpose, effective licensing system etc more and more investors use Hong Kong as the holding company to invest China mainland, using this offshore company to hold their operations in China.

 

Business set-up in Guangzhou is a big project by itself, which requires financial and time commitments, business management knowledge and China expertise. Identifying a competent agent to manage the complex process will be a cost and time effective way to avoid potential pitfalls . Tommy China Business Consulting has direct connections in the local government

 

Since 2006, TCBC has been focusing on consulting services for our clients to invest in Guangzhou China. We are specialized in establishment of wholly foreign owned enterprises (WFOEs), setting up of offshore companies, trading services, tax minimization, Assist in obtaining government approvals and certificates for running business, negotiate and draft various legal documents provide legal advice, negotiate government officer for Land acquisition. Advising on formation of WOFE and business structures, managing and controlling WOFE in Guangzhou China, drafting privacy policies and structuring commercial transactions

 

TCBC will manage all aspects of incorporation to get you a business license in Guangzhou China. We offer a range of company formation services including helping you to set up:

-Wholly Foreign Owned Enterprises (WFOE )

-Representative Offices

-Joint Ventures (Equity/Co-operative)

-Foreign Invested Partnership Enterprises (FIPE)

-HongKong Holding Company.

 

 

Contact Tom Lee for business set up in Guangzhou now.

 

Guangzhou company registration, Registering a Guangzhou company? You need to know these...

In recent years, with the country's vigorous promotion of "Mass entrepreneurship and innovation", a new wave of entrepreneurship has been launched nationwide. Guangzhou is the financial center of South China. More and more entrepreneurs come to Guangzhou to fulfill their entrepreneurial dreams since the conditions and process of Registering a Company in Guangzhou have reduced.

However, start a business is not so easy. For Registering a Company in China, few people know the registration process very well. Most people encounter various problems in the process of China Company Registration, and there are also many misunderstandings about the matters of the registered company.

What misunderstandings do you usually have for New Company Registration in China?

1.Setting the company name freely

The company name is the symbol used in company’s business activities. The company can only use one name and cannot be the same or similar to the name of the same industry. The general company name is composed of four parts: administrative region + name + industry characteristics + organization form. The name, also known as the trade name, is a sign used to distinguish other companies and is the most important element in the company name.

There are many New Companies that have successfully registered in Guangzhou. Some entrepreneurs use some strange names in order to avoid duplication and show uniqueness, resulting in a low rate of registration in the name. When preparing a Chinese company name, it is recommended to use a combination of two words, avoiding using unfamiliar words, and make it easier for customers to understand and remember. Before Registering a Company, it's a good idea to prepare some more names. Once the company name is taken and has passed the industrial and commercial registration, so don't change it at will. If the company name is changed, it will also involve changes in registered trademarks, copyrights, domain names, etc., which will cost a lot the company's internal resources.

2.Fill in the registered capital freely

When Registering a Company, it is also necessary to pay attention to the reasonable filling of the company's registered capital. Although the shareholders have no need to pay the registered capital when Registering a Company without capital verification, but some people think that the higher the registered capital, the better.  In fact, the registered capital is not as large as possible, and it needs to be roughly matched with the scale of business operations. There will be some adverse effects for excessive registered capital. For example:

1)Excessively high and unregistered registered capital indicates that the shareholder has a capital contribution obligation to the founding company. If the shareholders fail to pay the capital in accordance with the regulations, they shall, in addition to paying the full amount to the company, also bear the liability for breach of contract to the shareholders who have paid the capital in full and on time. (Article 28 of the Company Law)

2) It is not conducive to the introduction of new shareholders, and the equity transfer tax is high.

3) The capital reduction process is cumbersome.

3.Must find a commercial room to register a company

Generally, a company needs to have a residence. In order to encourage investment, Guangzhou published the“Regulations on the Registration of Enterprise Residences in Guangzhou” as early as 2015, aiming to rationally release all kinds of venue resources, reduce startup costs, stimulate market participants, and greatly relax restriction on registration of corporate residences. The business premises does not have to be the actual and unique commercial warrant address.

4.Business scope only fills daily business

When a company was established, many investors were entangled in the scope of business.

The company's business scope refers to the areas involved in the company's business activities, such as production projects, business types, service items, etc., therefore, if it exceeds the business scope filled in, it will violate the law.

When filling in the scope of business, it is recommended to fill in the widest scope of business, some of which may not be in your business, but in fact, as long as the company does not engage in franchising and business operations, it generally does not affect the legality of the company's business and the signed contracts, and the company's external invoicing and tax payment.

In addition, as long as the business needs, the company can apply for change business scope registration at any time during the business period.

5.New company does not operate without tax return

When the company was successfully registered, many people thought that everything would be fine. In fact, this is just the beginning. Maintaining a company is not just a matter of protecting the business license. There are still many laws and regulations to follow, such as timely tax filing, annual inspection, company cancellation, etc. You also need to make a zero declaration although there is no income (sales), otherwise you will be fined.

If you do not follow the laws and regulations, it will bring credit stains to your company, and it will also have some negative consequences for the legal representative and responsible person of the company. For example， he can’t buy a house, do immigration and get pension insurance, and that you will be fined. He was prevented from leaving the country and could not take an airplane or a high-speed train. In serious cases, he could not be the legal representative or responsible person of other enterprises within 3 years.

Many new companies haven't hired professional accountants in order to save costs. However, a company that operates normally needs to prepare statements and tax returns. It is recommended that you can hire a part-time accountant or find a professional agency with the qualification of account bookkeeping to handle the company's tax return. TCBC is a good professional agency bookkeeping company.

Do you understand the five points of the above-mentioned New Company Registration in Guangzhou? I hope that all entrepreneurs can understand the issues and prepare for the establishment of the company, and achieve their entrepreneurial dreams.

Of course, if you have any other questions about Registering a Guangzhou Company, or if you want to find a professional agency, you can Contact Us.