Q&A of Company Registration

1. Company name

Chinese company name is normally formed by 4 parts, including region, name, industry character and type of organization. For example, Shanghai is the region, R&F is the name, Consulting is the industry character and Co., Ltd. is the type of organization. The company name in Chinese is legally necessary but the company name in English is not legally necessary. If the company name in English is requested, it can be recorded in the company’s article of association.

2.  Registered address

A registered address and it rental contract is required for a Chinese company. To apply for the export VAT refund at the first time, a physical address and employee’s social insurance paid certificate is requested by tax authority.

3.  Registered capital

The registered capital amount is based on the company planning scale without minimum limit from corporate law point.

4.  Payment term of registered capital

The registered capital should be paid within 5 years after the company business license is issued but it can be paid in installments. Generally the shareholder(s) can determine to increase or decrease the registered capital at any time if necessary.

5.  Legal representative & finance controller

For a Chinese company, at least a legal representative and finance controller are required for a new company registration. But these two positions can be one person. According to the needs, the company can also register a general manager, supervisor, etc.

6.  Board of directors

For a Chinese company of small scale, to be simple operation, only an executive director is set. Then this executive director can have more authorization to handle the company operation. Of course, a company can also form the board of directors. 3 directors is the minimum requirement for the board of directors. The rights of the director(s) can be registered in the Articles of Association of the company.

7.  Business scope

For a Chinese company, the business scope must be clearly put forward to China authority and the amendment is required if you want to do the business beyond the registered business scope.

8.  Bank account

Generally speaking, a company can freely choose the opening bank, including CNY account, USD account or any other foreign exchange accounts. The company can instruct the bank who and what authorization has the path to the bank cash/deposit. Pls be noted that all foreign exchange flowing in Chinese company is strictly supervised. Your company should afford certain invoices or documents to bank to receive or pay the foreign exchange.

9.  Company stamps

A company will generally have an official stamp, a banking stamp and a private stamp of the legal representative. In addition, a company can also apply for a contract stamp and others.

10.  Annual licenses renewal

Annual licenses renewal is required during Mar. 1st to June 30th of each year for a Chinese company.

11.  Accounting and tax declaration

A Chinese company is required to declare the corporate value-added tax, additional surtaxes, employees’ social insurance, employees’ individual income tax, stamp duty on monthly basis. The corporate income tax is required to be declared quarterly and then settled after the end of the year. The financial statements are also required to be completed on monthly basis and then declared to tax authority on quarterly and yearly basis. 

The above information is made by Xiamen R&F Consulting Co., Ltd..