Start business in China: All about Company Incorporation


China is considered to be the world’s third largest country after Russia and Canada. This country has advanced technologically and presently exports wide range of technological and non-technological products across the globe. It also directs lots of direct foreign investments amounting to about 9 percent of total global investments. You will require applying for a valid license to start a business in this country also has knowledge of China PEO.

Market opportunities

If you wish to start business in China, you are likely to benefit from this decision. This is because the Chinese government offers an efficient and easy online corporate registration process. This has helped companies of all types to incorporate their business here. These days, new market entrants have been planning to register their start-ups in this country due to its market depth.

What are the benefits derived by a registering a company here?

A few reasons for entrepreneurs to start an offshore company in China are as follows:

  • Tax benefits: Chances of pursuing tax-free business is possible if the offshore holding entity holds the profits through investment structuring.
  • Ease of application: The application process comes with a mandate where corporate documentation presented by the Holding Company is to be translated into the Chinese language.
  • Establishment: It is possible to convert RMB profits in China to US dollars and remitted to the parent company located outside the country.
  • It is possible to implement global strategies freely and independently. The parent company may indulge in such acts without involving any Chinese partner.
  • Chinese establishments offer greater efficiency concerning its management, operations and future development. Thereby it manages to develop a positive work environment necessary for any business to flourish.
  • Also is present the opportunity to safeguard the technology and intellectual know-how.

To know more about the benefits, you may consult the professionals at

Corporation types incorporated in China

Three recognized business forms can be incorporated by foreign investors in China. But it is necessary to maintain China payroll properly and correctly.

  • Representative offices: They are the most cost-effective and simplest method to incorporate a business here. It is product research and basic market that determines such offices. High profile places like Shanghai, Shenzhen, Guangzhou, etc. are some of attraction locations to set up a representative office. It is possible to establish multiple representative offices in China.
  • Joint Venture: Participants in this type of business develop new business entity. They also share management responsibilities, investments operational expenses, profits & losses, etc. Foreign investors can benefit from this entity from to use advanced management skills, the latest technology and obtain better exposure. It also facilitates low labour costs, thereby encouraging huge Chinese market share. China PEO is a topic that you should be aware of.
  • Wholly foreign-owned companies: Such companies are 100% foreign owned and are non-Chinese with limited liability. Capital requirements are likely to different with industries and the business is completely controlled by the foreign entity.

Taking the help of the certified consultants can help you understand better about China employment and staff availability.