Opened a Chinese company

As more and more Hong Kong entrepreneurs are planning to set up their companies in China due to the development plan of the Greater Bay Area and the emerging market opportunities in Mainland China, M&N, as a professional company registration consultant with extensive experience, specializes in assisting Hong Kong clients to complete the company registration process in China smoothly and solving the complicated problems of setting up a foreign-owned business.

Why did you choose to set up a company in China?

For Hong Kong investors, setting up a company in Mainland China is a strategic choice to capitalize on the country's development opportunities and expand your business territory. It not only gives you direct access to the world's most vibrant mega-market, with rising consumer demand and a rich business scene, but also gives you an unrivaled location advantage by leveraging on the innovative policies and complete industrial chains of the Guangdong, Hong Kong and Macao Greater Bay Area, especially Shenzhen.

Core strengths include:

Huge market, unlimited opportunities: Directly facing the consumer market of over 1.4 billion people, enjoying the dividends of domestic demand growth and consumer upgrading.
Optimized Environment, Convenience and Transparency: Under the framework of the Foreign Investment Law, the business environment has been continuously optimized, the establishment process has become increasingly simple, and the protection of rights and interests has been improved.
Unique location and skewed policies: Shenzhen and Qianhai, in particular, provide Hong Kong-invested enterprises with tax incentives, capital support and many other facilities, making them ideal platforms for the interface between "Hong Kong R&D" and the "Mainland market".
Comprehensive and efficient industry: With the world's most complete industrial system and efficient supply chain network, we can significantly reduce operating costs and accelerate product launches.
Hong Kong investors enjoy unique convenience: Under CEPA, Hong Kong residents can set up individually owned stores in the Mainland with simple procedures, and enjoy preferential access to a number of modern service sectors with low thresholds for starting up businesses.

By choosing M&N, we will provide you with one-stop professional services from company registration, structuring to post-compliance based on our deep understanding of the rules of the two places, which will help you land in the Mainland efficiently and steadily and seize the business opportunities of the times.

M & N Establishes China Corporate Services Program

Fees for the incorporation of a foreign company with limited liability in China:

Registered Shenzhen Foreign Limited Company RMB6,800 onwards
Registered Guangzhou Foreign Investment Company Limited RMB8,800起
Registered Shanghai Overseas Capital Limited RMB10,800起

Choose M & N's China Company Formation Services

Get it done fast.

Time is money. Whether you are a sole proprietor or a cooperative enterprise, M & N will take the shortest possible time to set up a China company for you, which usually takes about 10-15 working days.

Experienced

M & N's team has many years of experience in assisting clients to set up Chinese companies, we are familiar with local laws and regulations, and we can arrange for the opening of bank accounts, tax filing and accounting on behalf of your company to minimize unnecessary back and forth procedures, and we can also provide appropriate advice on a case-by-case basis to help you to operate your ideal business in the Mainland.

Online Enquiry

No matter where you are, you can contact us to learn more about company registration in the Mainland; we offer a variety of ways to contact us, including WhatsApp, email, and online real-time enquiry.

Start your entrepreneurial journey the way you like it!

Whether you want to do the whole process online and enjoy the convenience of not leaving your home; or you are willing to visit the M&N office and communicate with our consultants, we are here, and the M&N team of professionals is the most flexible way to achieve the quickest start of your business.

Benefits of opening a Chinese company

Formalization of business

By removing the constraints of setting up a formal office, registration as a Mainland company will give enterprises the ability to formally launch their business.

Currency Handling

After opening a PRC company, you can invoice your customers in RMB and use RMB as income; you can also convert RMB into other currencies for remittance.

Employment of Chinese staff

With huge and low labor costs, setting up a China company will allow you to directly employ Chinese staff and provide more job opportunities in Mainland China.

Steps and Points to Note for Opening a Chinese Company

Establishment of PRC Company Scope of Business

As a foreign invested enterprise, it must comply with the PRC industry regulations. As there are very strict restrictions on the scope of business of each industry in China, the establishment of a PRC company is required to indicate the industry on the business license and to conduct business activities only within its permitted scope of business. If any change is required in the future, application must be made to the authorities for permission.

Requirements for Registration of Mainland Companies in Shenzhen, China

Must have an actual registered address, if you do not have a registered address, we can provide registered office address services.
(say the) least 1 No nationality restriction on shareholders
(say the) least 1 (b) a director or, if there is only one director, that person will also act as the legal representative
(say the) least 1 A supervisor, who may not be a director or legal representative of the PRC company at the same time.

Capital Requirements for Registration of Mainland Companies in Shenzhen, China

Before opening a company in China, it is important to note the minimum capital requirements for each industry:

Trade category:50RMB10,000 (wholesale),30RMB 10,000 (retail)
International freight forwarder:500RMB 10,000 (by sea),300RMB 10,000 (air transportation),200RMB 10,000 (land transportation)
Software development, consulting and design:10RMB 10,000
Identity cards of shareholders, directors and supervisors （2(in Chinese), subject to notarization by the PRC
Shareholder's bank reference (Chinese translation to be attached)
Original office lease

If the shareholder is another limited company, the following notarization from the PRC is required (2(copies):

Certificate of Incorporation
Business registration for the last year
Annual Return for the most recent year

Annual Reporting Period

Accounting and Tax Reporting: Monthly15the other day
Annual Tax Audit Report:1月1solstice5月31日
Annual Audit Report ：1月1solstice6月30日
(c) Annual review of the degree of commerce and industry:1月1solstice6月30日

Tax rate paid by foreign enterprises

Corporate Income TaxThe tax rate is25%
value-added tax (VAT)
Annual sales amounted to80above RMB10,000, generally17%
Annual Sales80RMB10,000 or less3%

Major forms of establishment of organizations/enterprises by foreign investors in the Mainland

Foreign investors investing in the establishment of organizations/enterprises in the Mainland can take the following forms. Hong Kong investors follow the arrangements for foreign investors.

Permanent Representative Organizations of Foreign Enterprises

The resident representative office of a foreign enterprise (hereinafter referred to as “resident representative office”) may engage in non-profit activities related to the business of its parent company, or conduct business-related market research, exhibition, publicity activities or liaison activities, but may not engage in direct business activities. A resident representative organization has no legal personality. To set up a resident representative office in Guangdong Province, it is necessary to first submit an application to the competent department. After approval by the market supervision and management department, the resident representative organization will be issued with a registration certificate and a representative card. After receiving the registration certificate, the resident representative organization is required to complete the registration procedures with the relevant government departments.

Individually owned stores

As a preferential policy under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), Chinese citizens who are permanent residents of Hong Kong may, in accordance with the relevant Mainland laws, regulations and administrative rules, set up individually owned stores in all provinces, autonomous regions and municipalities directly under the Central Government of the People's Republic of China, without the need to go through the examination and approval of foreign capital, excluding franchising, and removing the requirement of identity verification, and with no restriction on the number of practitioners and the area of business. There is no restriction on the number of employees and business area. The scope of business that an individually owned stores can engage in includes a wide range of trades such as retailing, catering, computer services, advertisement production, clinics, economic and trade consultancy and business management consultancy.

For more information, please refer to the website of the Market Supervision Administration of Guangdong Province:
http://amr.gd.gov.cn/

Foreign Investment Enterprises

On March 15, 2019, the Second Session of the Thirteenth National People's Congress adopted the Foreign Investment Law of the People's Republic of China (“FIL”). The FIL shall come into force on January 1, 2020 and the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures, the Law of the People's Republic of China on Foreign Invested Enterprises and the Law of the People's Republic of China on Chinese-Foreign Cooperative Enterprises shall be repealed at the same time. According to the Foreign Investment Law, a foreign-invested enterprise is an enterprise that is wholly or partially invested by foreign investors and is registered and established in accordance with the laws of the People's Republic of China. The four main types of enterprises that can be invested and established by foreign investors in the Mainland are foreign-invested limited liability companies, foreign-invested joint-stock companies, Hong Kong-Macao-Taiwan limited liability companies and Hong Kong-Macao-Taiwan joint-stock companies.

For foreign-invested enterprises (such as Sino-foreign equity joint ventures, Sino-foreign cooperative joint ventures, wholly foreign-owned enterprises, foreign-invested partnerships, etc., hereinafter referred to as “existing foreign-invested enterprises”) established prior to the implementation of the Foreign Investment Law, they may adjust their organizational forms, organizational structures, etc., and apply for change registration in accordance with the provisions of the Company Law of the PRC, the Law of the PRC on Partnerships, etc., or may continue to retain their original organizational forms, organizational structures, etc., in accordance with the provisions of the Law of the PRC on Partnerships, the Law of the People's Republic of China on Partnerships, etc., and apply for registration of changes in accordance with the law, or they may continue to retain their original organizational form and structure.

Starting from January 1, 2025, for existing FIEs that have not adjusted their organizational form and structure in accordance with the law and applied for change registration, the market supervision and management departments will not process their applications for other registration matters and will make public the relevant circumstances.

Meanwhile, after the adjustment of the organizational form and structure of an existing foreign-invested enterprise, the method of transferring shareholdings or rights and interests, the method of distributing proceeds, and the method of distributing residual property as stipulated in the contract between the parties to the original joint venture or cooperation may continue to be carried out in accordance with the contract.

For more information on the Foreign Investment Law, please refer to the mainland government website:
http://www.gov.cn/xinwen/2019-03/20/content_5375360.htm

Why do so many entrepreneurs choose M&N Business Services?

Hong Kong licensed organizations:M&N Business Services Limited is a licensed secretarial company recognized by the Hong Kong Government for its reliable services.
One-stop comprehensive program:從Company Formation, Secretarial Services, Accounting & Tax Preparation to Virtual OfficeWe have everything you need, so you don't have to travel around.
Experienced team:Over the years, we have assisted numerous SMEs and start-ups to register successfully and are able to deal with a wide range of complex situations.
Charges are transparent and straightforward:All service plans are clearly priced, with no hidden charges, so you can rest assured that you're in good hands.

Services related to the registration of Chinese companies

You can set up a wholly foreign-owned enterprise, a foreign-invested partnership, a Sino-foreign cooperative enterprise, or a Sino-foreign joint venture.

What are the requirements for a company name for registration in the Mainland?

Similar to Hong Kong, when naming a to-be-established PRC company, care should be taken not to use a company name that may infringe on the intellectual property rights of others, e.g. the same name as a company in the same industry. In addition, the use of words such as "country", "China", "PRC", etc. in the name will need to be approved by the relevant authorities.

How to register a physical address?

When opening a company in China, you must have a real registered address, the address submitted must be a real office, such as offices, business centers and so on. If you do not have a company address, we can provide you with a virtual office address.

The M&N team is responsible for all content and information provided in this article for general reference only. M&N accepts no liability for any loss or damage arising directly or indirectly from any person's use, misuse or reliance on the information on this website.