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The procedural of company registration in China

Time:2014-03-13 Hit:936

The procedural of company registration in China

The first step, renting of premises:

  In China, the land can be divided into agricultural land, construction land and un-utilized land; the agricultural land shall not be used for factory establishing, as a result, it's very important to discover that whether the land is for industrial use before signing a lease agreement.

  The land in China is owned by the State or the by peasants' collective economic organizations. Individuals, enterprises and other organizations can not own property, but can acquire to use land, the maximum duration for the grants of land use of commercial purpose is 40 years; the maximum duration for the grants of land use of industrial purpose is 50 years, the maximum duration for the grants of land use of residential purpose is 70 years. If the rights of the land use are transferred from another user, the rights will last until the same original grant expires.

The second step, Name- pre-approval:

  When registering a company in China, a name of the company must be pre-registered, which is to consist of the brand name, the place of investment, the industry in which the company is operating, after confirming the availability of the suggested name, the competent administration for industry and commerce will give a pre-approval license which can be reserved for 12 months, during the period of which, the enterprise may not use the reserved name for carrying out its business.

According to Provisions on Administration of Enterprise Name Registration, the name must be different from any names already in use, especially where the companies are operating in the same industry. The company's name shall be in Chinese characters, in case there is an English name of the company, the English name shall be in conformity with the Chinese name and shall also be registered thereof.

  The names that may detrimental to the States and social public interest, may cause fraudulence or misunderstanding to the public, named after the foreign country or international organizations or political parties, numbers, are prohibited.

The third step, the approvals of the MOFCOM and AIC:

  The establishment of a foreign-invested company shall be approved by a local China Ministry of Commerce (MOFCOM), which is also referred to as the bureau of foreign trade and economic cooperation, after receiving the required documents, the BOFTEC may issue its approval notice. For certain industries and depending on the size of the project, final approval may be obtained from the authorities at the provincial level or directly from the MOFCOM in Beijing. Other approvals that are particularly large or insensitive industries may be required form the National Development and Reform Commission. Factory establishing may also require approval from the Environmental Protection Bureau for Environmental Impact Assessment (EIA).

  All the documents shall be examined by the Administration for Industry and Commerce (AIC), the Administration for Industry and Commerce issues the company its business license, which marks formal establishment. The company's file will be kept by the same Administration for Industry and Commerce, and the company is also under yearly inspect by such administration.

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