Business Nature Summary of China Company Formation for Foreign investors
Foreign investors invest in China to set up a company, regardless of the nature of the wholly foreign-owned companies, joint ventures or Sino-foreign cooperative company must affirm the company's business nature in the stage of company registration and business license making. The company must declare the types of business according to the business scope and amount of investment of companies operating in China. The following is the more common types of business operating of foreign investors forming companies in China.
1. Service Company
Such company is a foreign company to provide services in China, the company itself is not the production or merchandise trade. Service companies include consulting and management service companies.
2. Production Company
Such companies allow foreign companies to produce goods and sale of finished products in China or international. Production enterprises can sell their products and imported raw materials in China or other countries without going through an intermediary. But attention, the production company need more certificates, so registration is more complex than other types of business.
3. Foreign International Trade Enterprises
To establish a trade wholly foreign-owned company, the company shall be registered in the Free Trade Zone. Foreign trade companies can be exempt from customs duties for imports and exports in free trade zones. Sales of goods in China or outside the free trade zone should operate through the import and export agency and pay the applicable tariff. The companies which are in the free trade zones has applied trade right after July 2005, that they can trade in China without going through other agencies.
4. Foreign Invested Commercial Enterprise (FICE)
Foreign invested commercial enterprises have great freedom in terms of business activities. These business activities include retail, wholesale, chain business. Once established, FICE has the right to import and export commodities, and can buy and sale goods freely without going through the intermediary in China. The production foreign companies can apply to expand their business scope to get the right as same as FICE.
5. Other Types of Companies
Other types of companies include the procurement centers, research and development center, the holding company, regional headquarters and so on.
Tips:
The investors want to successfully establish and operate businesses, must have a clear understanding of the choice of investment and business. When the investors choose a business registration agency, they shall consider whether the agency abreast of the latest policy changes, the transparency of the registration process and the success stories of the Registrar of Companies. An appropriate service provider is able to guide the efficient foreign investors to complete a complex registration process. If you select Conpak CPA (http://www.conpak.com/China-Company-registration.html), we can help you to finish China Company Registration that you can easily and successfully enter into China market.
Tags:company formation,trademark registration
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