Setting up a Business in China

Overview by Globlatrade.net:

Legal Forms of Companies

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
Equity Joint Venture
 
 
No minimum capital.
100% foreign owned company. Minimum one partner.
 
 
Limied to the amount of contributions.
Government Tax: CNY 300 ; Registration Fee: CNY 450; Commercial licensing and Business Identification Number: CNY 1,000.
Co-operative joint ventures, CJV
 
 
No minimum capital.
Minimum 2 partners.
 
 
Limied to the amount of contributions.
Government Tax: CNY 300 ; Registration Fee: CNY 450; Commercial licensing and Business Identification Number: CNY 1,000.
Foreign investment joint stock company, JSC
 
 
5m Rmb, 30 Rmb if foreign capital
Minimum 2 partners.
 
 
Each shareholder contributes the same amount to the share capital and is linked to the company by its share of the share capital.
Government Tax: CNY 300 ; Registration Fee: CNY 450; Commercial licensing and Business Identification Number: CNY 1,000.
Holding
 
 
minimum de 30m USD
Minimum 1 partenaire.
 
 
Each shareholder contributes the same amount to the share capital and is linked to the company by its share of the share capital.
Government Tax: CNY 300 ; Registration Fee: CNY 450; Commercial licensing and Business Identification Number: CNY 1,000.
 
Enterprises Federation
Chinese association of international cooperation of SME
Search a Company or a Financial Report
Ministry of Commerce, Find an enterprise
 

Business Setup Procedures

Administrative Formalities
For drawing up articles of association, no specifics have been indicated. The capital and the articles of association must be registered with the Provincial Office of Trade and Industry. Deposit of the articles of association and registration are done at the Trade Register. The Business plan must be approved by the authorities before the company can be set up.
The Competent Organization
Ministry of Commerce
Time Necessary for Registration
6 to 9 months are generally necessary for setting up a foreign company in China.
 

Recovery Procedures

Principle
Minimum Debt-to-Capital Ratio Triggering Liquidation
Bankruptcy Laws
Company bankruptcy laws
The law on bankruptcy is being reshaped in China. It is difficult to be declared as bankrupt. To be declared as bankrupt, equities must be negative.
Reorganization and Rehabilitation Laws
Company bankruptcy laws

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