Setting up a company
Choosing a structure, naming the company, drafting the articles and getting it registered.
What is a wholly owned subsidiary? Meaning, examples and the China version
A wholly owned subsidiary is a company whose shares are 100% owned by another company, its parent. It is a separate legal entity with its own liabilities. In China, a foreign company's wholly owned subsidiary is called a WFOE (wholly foreign-owned enterprise).
Subsidiary, branch or representative office in China?
In China, most foreign companies choose between a subsidiary (usually a WFOE), a representative office and, more rarely, a branch. A subsidiary can earn revenue and hire directly; a representative office can only do liaison and research; foreign company branches are limited to a few sectors such as banking.
Types of companies in China: a guide for foreign investors
Foreign investors in China can use a limited liability company (a WFOE or joint venture), a company limited by shares, a foreign-invested partnership or a representative office. Most choose a limited liability company because it combines full operating rights with limited liability.
How to name a company in China: structure, rules and the English name
A Chinese company name has four parts: place, trade name, industry and legal form, as in 上海星宇贸易有限公司. It must be in Chinese characters only and is checked through SAMR's self-declaration system. The English name has no legal status, so contracts and bank accounts follow the Chinese name.
Business scope in China: why the wording on your licence matters
Every Chinese company's business licence lists its business scope: the activities it may carry out. Since 2022, scopes are chosen from a standard national catalogue. Activities outside the scope can lead to fines, problems with invoicing and trouble with banks, so the scope should be planned before registration.
Articles of association in China: what they must contain after the 2024 Company Law
The articles of association (公司章程) are a Chinese company's constitution. They set out the capital, contribution dates, governance bodies and the legal representative, and SAMR keeps them on file. The 2024 Company Law changed what they can and must say, and every foreign-invested company had to bring its articles into line.
Certificate of incumbency: what it is and when China asks for one
A certificate of incumbency is an official document confirming a company's current directors, officers and shareholders. Chinese banks and authorities often ask for one, or an equivalent extract, when an offshore company invests in China or opens an account, usually with an apostille.
Talk to a lawyer about setting up a company.
You'll receive a fixed written quote and a timeline. There's no sales call unless you ask for one.