Setting up an import and export company in China is a strategic step to access significant opportunities in the global trade market. With China’s vast economic growth, it has become one of the most important global trade centers. This guide provides detailed instructions on how to establish an import and export company in China, covering procedures, requirements, bank account opening, and tax account creation.
1. Procedures for Registering an Import and Export Company in China
First: Choose the Legal Structure of the Company
- Investors typically prefer setting up a Wholly Foreign-Owned Enterprise (WFOE).
- This structure grants full ownership and control of business operations to the foreign investor.
Second: Choose a Company Name
- The name must be in Chinese and reflect the company’s business nature (e.g., “Import and Export”).
- It must be checked with local authorities to ensure uniqueness.
Third: Prepare Required Documents
- Passport of the main investor or shareholders (translated and notarized).
- Proof of company address in China (rental or ownership contract).
- Detailed business plan.
- Shareholder agreement if there is more than one investor.
Fourth: Submit the Application to Authorities
- The application is submitted to the local Administration for Market Regulation (AMR).
- You will need to fill out the company registration form and attach the required documents.
- Initial registration typically takes 3-5 business days.
2. Basic Requirements for Establishing a Company
A. Registered Capital
- The registered capital varies based on business type and location.
- No immediate deposit is required, but it represents the expected financial commitment.
B. Company Address
- A physical address in China is mandatory.
- You can rent an office or use a “virtual address” service available in some special economic zones.
C. Additional Permits
- For import and export activities, you must register with Chinese Customs and obtain an EORI code.
- You also need to register with AQSIQ (General Administration of Quality Supervision, Inspection, and Quarantine) to get approval for imported or exported products.
3. Opening a Company Bank Account
Importance of the Bank Account
- The company bank account is essential for financial operations like international transfers and tax payments.
Steps to Open a Bank Account:
- Choose a Bank: Select a bank experienced in working with foreign businesses like ICBC or Bank of China.
- Prepare Documents:
- Company registration certificate.
- Company seal.
- Passport of the company’s legal representative.
- Sign Agreements: Visit the bank to sign the necessary contracts.
- Open RMB and foreign currency accounts.
4. Creating a Tax Account
Tax Registration
- After company registration, you must register with the local tax authority.
- Documents required include:
- Company registration certificate.
- Company seal.
- Information on the legal representative.
Monthly Tax Requirements
- Companies in China must file monthly tax reports.
- You may need a local accountant or specialized firm to ensure compliance with local regulations.
5. Additional Tips
- Consult a Legal Expert: Company establishment laws differ by region, so it’s best to work with a local consultancy.
- Build Strong Relationships: Strong business relationships with local authorities and partners are essential in China.
Conclusion
Establishing an import and export company in China may seem complex, but it is a strategic step that can unlock immense commercial opportunities. With proper planning, meeting legal requirements, and effective financial and tax management, you can build a successful business in the heart of the global economy.
Need assistance establishing your company in China? At Sawi Trading, we provide comprehensive support for all steps of company establishment and business operations. Contact us via:
Sawi Trading Co., Ltd
萨薇商贸(上海)有限公司
1st Floor, No. 74, Lane 298, Beixing Road, Fengxian District, Shanghai, China
Phone: +8613023440305
Email: contact@higreenpanda.net
Website: higreenpanda.net