Guidelines for Investing and Establishing a Company in China
Before considering investment opportunities in China, it’s crucial to consult the “Negative List,” a document periodically issued by PRC authorities. This list outlines fields that are restricted or forbidden to foreign investors. Any field not explicitly listed therein is freely available for investment.
According to the PRC Foreign Investment Law and relevant implementing regulations, Foreign Invested Enterprises (“FIEs”) whose business activities are not listed in the Negative List enjoy the same treatment as PRC Invested Enterprises. Consequently, they must adhere to the same laws and regulations applicable to Chinese domestic investors, such as the “PRC Company Law” and “PRC Administrative Regulations on Registration of Enterprise Legal Persons.”
Establishing a Company: What’s Required?
Under the “PRC Administrative Regulations on Registration of Enterprise Legal Persons” and its implementation regulations, foreign investors (whether individuals or legal entities) seeking to establish a company in China must provide the following:
- Business registration of the investor or identity document of the individual.
- Proof of business premises, such as a lease agreement or real estate ownership certificate.
- Bylaws, Feasibility Study Report, and application forms.
- Other documents may be required, depending on the area where you intend to establish the new company.
Streamlined Procedures:
Previously, it could take up to three months from the submission of documents for a company to become fully operative. However, many areas in China have implemented expedited procedures, significantly reducing this timeframe. In some cases, it now takes just one day from document submission to the issuance of the business license.
