Ready to start your business in China? Best Tips for Registering a Company in China

16th March 2023
Concept of business plan with Asian businessman work by laptop.

If you want to start your business in China, the best advice is to consume as much information as you possibly can about the process and the options that are available to. This article is a great place to start.  

Looking to enter the Chinese market by establishing a local presence? Registering a company in China is a serious business decision, and should only be done after careful assessment and evaluation. In fact, many businesses are not aware of the fact that they can operate in China and do practically everything they set out to do – without registering a local business entity. By relying on expert service providers like PTL Group, overseas companies can avoid a lot of unnecessary hassle and minimize risk that comes with opening a new company in unfamiliar territory.


Tip #1 for Registering a Company in China: Evaluate First

Before we proceed, let’s discuss the assessment and evaluation stage. How can you assess whether you should set up a China entity from the get-go? At PTL Group, we help overseas companies with the assessment process. We start by obtaining important information. Here’s a sample of the questions we ask – and that you should also be asking yourself: What is the purpose of the new entity in China? Does the company have licensing needs, and if so, what are they? Where in China should the company be established? Who is the designated management? What type of entity is most suitable – a WFOE, RO, JV or Hong Kong subsidiary?


Grow Your Business in China – without Registering a Business Entity

If the evaluation stage yields an assessment that you can start operating in China without establishing a business entity, there are two things you should keep in mind. The first is that you need to find a reliable partner with relevant experience and boots on the ground in China, who can offer all the relevant services you need via an effective outsourcing model. At PTL Group, we call this model Market Entry Operational Support. By providing a wide range of services that allow you to conduct business in China, you can benefit from a “transitional” period in which you can familiarize yourself with China’s business landscape and make the adjustments you need with very little risk.

PTL Group’s Market Entry Operational Support includes a wide range of valuable facets that help you grow your business, without registering a business in China. We start out by deploying our HR experts to recruit the best staff for you needs – and handling all employee management aspects. Our logistic and warehouse resources allow us to create an effective infrastructure for your business needs – including product importing, exporting, reselling and storage – while also offering VAT refunds and tax optimization. As you start conducting business, our marketing experts focus on creating a marketing strategy and developing your local brand on traditional, electronic and social media. This services are just the tip of the iceberg. For more detailed information, please click here.


Ready to Register: Discussing the When & How

After establishing a foothold in the Chinese market, the conditions may mature and it may finally make sense to register a business entity in China. Again – this decision must be made after careful deliberation, but registering a company in China is often smarter once you’ve got paying customers in China, a running operation, a positive reputation, and an awareness of the local culture.

The first thing to keep in mind is that entity registration can take several weeks and even several months to complete, depending on the type of entity you wish to register and the licenses you need for your business. You also need to choose a name in Chinese for your new business entity.

As for the legal and financial aspects, we recommend planning ahead and preparing the time and resources that are required to translate and notarize the many documents required by the local authorities from your central company overseas. You will also need to appoint position holders in advance – a General Manager, Directors, a CFO, a legal representative and more.

The legal representative is usually required to be present as you proceed to open a bank account in China. As for funds, you will need to plan an annual budget and register the capital that matches your needs accordingly. Everything must be prepared in advance and executed in a precise, detailed and impeccable fashion.

For more information on the types of business entities that can be registered in China and the stages of setting up a business in China, click here.