One of the big benefits of the company business structure is that it’s considered a separate legal entity, entirely separate to your personal assets. A business that operates under a company structure is typically geared towards taking on investors. Potential investors are more likely to invest in a company too, as they can clearly see the percentage of the business they’re investing in, and understand where their investment is being used. A company structure also enables future expansion. Starting a business under a company structure also provide the opportunity to receive Government grants and incentives.
1. Shareholders Shareholders of foreign-funded enterprises and wholly foreign-owned companies may be foreign enterprises or foreign residents; shareholders of Chinese-foreign joint ventures have special requirements for Chinese shareholders, i.e. the Chinese shareholder cannot be a Chinese resident and must be a Chinese company. 2. Supervisors If there is a supervisory board, at least three supervisory members are required. If there is no supervisory board, there can be one supervisor, who can be a foreign individual or a resident of mainland China. When registering a foreign company, you need to submit proof of identity of the supervisors.3. Company Name When registering a foreign-funded company, the first thing to do is to approve the name of the company, and it is necessary to submit a number of company names for name search. Shenzhen registered company name search rules are, in the same industry, the company name can not be the same name nor similar. 4. Company Registered Address The company's registered address must be a commercial office address, the need to provide a record of the red copy of the lease voucher as proof of address 5. Legal Representative The legal representative of foreign-funded enterprises need to have a legal representative, the legal representative can be one of the shareholders, but also can be hired. The legal representative of a foreign-funded enterprise or sino-foreign joint venture can be either a Chinese or a foreigner. When registering a foreign company, the legal representative's identity certificate and photograph must be submitted. 6. Registered Capital The minimum registered capital of an ordinary foreign company is RMB100,000 and the registered capital can be contributed in tranches, with the first contribution being no less than 20% and the rest being contributed within two years. The foreign investor is required to credit the registered capital into the foreign exchange account of the foreign company, hire a professional accounting firm to verify the capital and issue a Capital Verification Report.
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512, or emailing to [email protected]. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
