Incorporating in China

Perusta yritysEstablishing a company is most likely more difficult in China than in your home country, but we will make it easy for you.

Setting up and running a company in China is much regulated and restricted by the law and regulations as well as by the company’s business scope.

These interrelated issues, among many others, will influence how to establish and run the company:

  • Business scope?
  • Ownership; all foreigners, all Chinese, or both?
  • Registered address and city?
  • General taxpayer status needed?
  • Import and export license required?
  • Are work permits needed for the foreign personnel?
  • Industry specific licenses required?

Often clients choose to establish first a holding company in Hong Kong, which in essence is just a limited liability company incorporated for the purposes of establishing and owning the company in China. Reasons for a Hong Kong holding company includes:

  • Easier and quicker to get proper documents for establishing a company in China
  • It is often better to share the Hong Kong holding company among the investors than to establish a joint-venture in China
  • A Hong Kong holding company may provide tax benefits
  • Investor might want to have one more company between him and the company in China as a buffer
  • It is easy and affordable to establish a company in Hong Kong

Contact us to discuss your needs in incorporating in China.