Jingzhan.Wang, lawyer from Tianjin Bozhuan Law Firm, gives you some tips on filing an incorporation in China.
Choose a right name
the first step to register a company is to choose a name for your company. A name is very important because it identify your company from others. To have an impressive name may be an advantage for you to do business.
Rent or buy a real estate to be used for the place of business when incorporation in China
A business place is where your company operates; it’s to be registered according to the regulations of China. It can be one bought or rented.
Define the scope of your business when incorporation in China
The scope of business is classified as per their fields. Several years ago, a company may define their business themselves, but nowadays the company to be registered must choose their business from the dropdown list given by the government. So you need to research what your business should be classified into.
Draft the intended company’s Articles of Association and regulation of financial management
Articles of association are an important corporate document which regulates the company’s internal affairs. The articles of association shall be duly negotiated and signed by all of the shareholders of the company.
The regulation of financial management is the rules about how the money of the company will be used. This is required when you register the company as a taxpayer.
Appoint the board of directors and supervisors
When a company is set up, the board of directors, or an executed director, and the board of supervisors, or an executed supervisor, is required to be appointed. Usually the person in charge of financial affairs is should be assigned when registered as a taxpayer.
Choose an agent
Authorize a person who will act as a representative of the company and its shareholders to file the articles of incorporation and communicate with the officers, as well as liaise with the shareholders.
A lawyer or non-lawyer could be an agent. But if you’re being serious with your business and want to create documents in compliance with laws and avoid disputes, you’d better hire a lawyer to do it.
Report to the bureau of commerce that supervises the foreign investment.
In China, you need to report to the supervising bureau for investment coming abroad when you’re registering a foreign related company.
Get permits if your business in involving some special fields.
The companies who will do some special business in China should get special permits before you start to do such business, or else you’re breaking the laws and may be punished.