Are You Thinking Of Setting Up A Business In China?

Learn what it takes to set up a business in Kunming....

Setting Up A Business In Kunming City, Yunnan Province, China

China is a big country, thus each provinces has her own policies and requirements concerning the registration of fully foreign-owned company.  Below are some information that will be very helpful to get your prepared, although the information provided is for Kunming, Yunnan, China, you can go through it as a reference because of the standard requirements can be very similiar.

The total Company's registration takes between 2 to 3 months to complete.  That is to say, when all the approval is completed.  You will be given 6 months to tele-transfer your investment budget into the [Company's Foreign currency bank accoun] and then you will need to change to RMB and transfer it into the [Company's RMB bank account].  After that you are not supposed to tele-transfer any more money into the [Company's Foreign currency bank accoun] because any deposit to that account needs to get approval from the Foreign exchange bureau.  After the transfer, you will need to get an auditor to audit the transfer.  the auditor will charge you a fee for each audit, so it is better to do a one-time transfer of your investment budget.

Phase One : Company's Name Approval

This is the initial phase of the company's registration process.  It normally takes about 1 week. 

Documents to prepare :

• 2 Orignal copies of your personal bank statements stating you have the required amount of capital inside your balance.  If you have other investors as partners, they are also required to provide the original copies of their bank statement.
• Your Identity card, notarized in your country and certified as true copy by the Chinese embassy in your country.  This is a new requirement because there are people with different passports, so the Chinese government wanted an additional identity comfirmation from your country.
• Passport photocopies
• 12 Passport size recent photos of the investor/s.
• Get a form and fill up to apply for your company's name.  You are required to have three names for selection and place din order of preference.  Each name will be in both English and Chinese.  A fee will be charged for the processing of the application. 
• The Rental contract aggreement with your land-lord if you rented an office.  You will also need to get the owner property title deed to proof that the property belongs to the person that is renting you.  This is to safeguard you from the many con men who pretends to be the owner and cheat unsuspecting tenants with their rental.
• If you are applying for a restaurant, additional bureau will need to be notify and they will come and inspect the premises.

Phase Two : Company's Registration

After the approval of your company's name, you can now proceed with the registration of the company.  There are quite a number of forms to fill.

Documents to prepare :

• Get the relevant forms depending on the nature of your company and fill them all up.  Information required are :Your company's constitution, scope of work, budget and budgeting plan, etc.
• In the form, you will also required to submit certain documents which will need to be translated and verified by approved translator and stamped with their licensing stamp.

Phase Three : Company's Approval

This is the final phase of the application where your company will be approved.  At this phase, you will be required to submit many personal documents and also get your company's bank accounts setup.

Documents to prepare :

•  Investor/s educational papers
• Marriage certificate if investor/s are married (original); to ensure the woman that is applying the visa with you is your lawful wedded spouse.
• Birth Certificate of children; mainly to indicate the children belongs to you.
• Medical checkup of anyone above 18 years of age applying to stay in China (about RMB 250 will be charged)
• Get the relevant forms to fill
• Apply for your company's bank account with the preliminary approval
• After the investment budget has been transfered and audit, you will then need to submit and get your final company's license. 
• The Tax bureau personnel will also come and visit your company

Budgeting :

The whole registration fees will be about RMB 1500

If you are engaging a company to help you with the registration, the company normally does not include the registration fees payable to the various government department because the prices varies and changes frequently.  Different Company charges differently.  The price can range from RMB 5000 to 10,000 depending on the complication of the registration.

Investment varies depending on the type of business you are setting up.  You will need to check with the authority concerning this.  Normally it range from US$15,000 to 100,000 (minimum).  The investment budget can be used for your rental payment, salary, company's expenses, etc....It is best to set a higher amount as future teletransfer of fund can be very tedious if you required additional fund to be transfered in future.

Hope you will find the information useful...

Best Wishes,

Patrick Stephen Oh (Director / Consultant)

Yunnan Venture Consulting Solution

http://www.vconsult.biz