WHAT IS THE REQUIREMENT TO NAME A BUSINESS IN CHINA?

China is an exciting prospect for many foreign business owners and investors. When set up a business, the company name reflects everything you stand for when you go to market. Therefore, a proper business name is so important. However, the company name registration process requires that names adhere to certain naming stipulations.

How to pick a company name?

Chinese company names follow the following rigid structure:

[City of Formation] Company Name [Business Type] [Company Ltd.]

So, an English equivalent of a typical Chinese company name would be: Dongguang ABC Trading Co. Ltd. The local government fixes the elements in the square brackets. This means the only thing you need determine is the Company Name ABC. You can see the full company name can get rather long. So, the company name part is limiting to 3 or 4 Chinese characters.

Can a company name in bilingual?

The company name should all be in Chinese. As only Chinese character has a legal status in China. The name cannot combine with any alphabet or symbol. Besides, the name cannot include following content or wordings: 

  1. To damage the image of the country or the public interest of society.
  2. Forbidding the use of content that either misleads consumers or fall into scam.
  3. Not permitted the use of certain words such as ‘Foreign Country’, ‘Foreign region’ ‘International organisation’
  4. Not permitted the use the name of ‘Political party’, ‘Government and Military organisation’, & ‘Social organisation unit number’
  5. ‘China’, ‘Chinese’, ‘National’, ‘State’ or ‘International’ can only be used under limited circumstances.
  6. Not permitted to use Arabic numerals, foreign symbols or alphabets.

Can I add ‘International’ in my company name? For example: Dongguang ABC International Trading Co. Ltd.

You can add ‘International’ in your company name as a [business type]. But the name should match the business nature. For example, ‘International Trading’, ‘International Transportation’ or ‘International Logistics’. 

Can I add ‘Guangdong’ or a province in my company name? For example, Guangdong ABC Trading Co. Ltd 

Yes, you can add a province in your company name. However, you must fulfil the following criteria:

  1. Registered capital amount over RMB10,000,000 and
  2. Obtain approval from State Administration for Industry and Commerce.

Is it a must to include a [city of formation] in my company name?

According to the <<Business Name Registration Regulations>>, the company can without the city of formation. But the company must fulfil the following criteria:

  1. A national company;
  2. Obtain approval from State Council or appointed massive import/export enterprise;
  3. Obtain approval from State Council or appointed massive enterprise organisation;
  4. Approved enterprise from State Administration for Industry and Commerce;
  5. Historical, reputation brandname;
  6. Foreign Investment Enterprise;
  7. Registered capital amount over RMB50,000,000.

For further information, please contact us.

You may want to read: DIFFERENCES BETWEEN LOCAL ENTERPRISE & FOREIGN ENTERPRISE IN CHINA

中国本土企业与外资企业的区别

当我们在香港设立公司时，本地人或海外人士设立香港有限公司没有任何区别。但是，当您以外国人的身份在中国设立实体时，本地和外商投资企业之间存在差异。

本地企业
首先，本地企业只能由本地中国大陆人设立，这不包括香港、澳门或台湾出生的中国人。本地企业容易成立，首先，您在国家工商行政管理总局（SAIC）网站上在线申请，获得预先批准注册后，您只需要携带所需的文件，如公司章程，带到工商行政管理局，工商总局将授予您营业执照。一旦你拿到营业执照，就代表您的公司正式成立。

对于某些行业，如保险公司，在中国有特殊要求。您可能需要中国保险监督管理委员会的批准。

外商投资企业
外商投资企业适用于任何非中国大陆人为了进行设置，在设置企业之前，您需要具备以下信息和证明：

居住地址
注册地址
注册资本
业务时间范围
业务范围代码

此外，您还需要完成名称的预先批准。向当地商务部备案，然后在国家工商行政管理局注册。商务部将对外国投资者是否进入允许行业进行审查。

中国外商投资负面清单和鼓励目录
国家发展和改革委员会（NDRC）和商务部（MOF）密切合作，共同制定了《中国负面清单和鼓励目录》。进入中国市场受国家负面清单和外商投资鼓励目录监管。该目录规定了限制或禁止的行业，并列出了对外国投资者开放的行业。外国投资者可以使用负面清单和鼓励目录来识别行业，并更好地了解他们可以开设哪些业务。

《关于建立更紧密经贸关系的安排》（CEPA）的香港与中国的特别安排
CEPA是内地与香港签订的自由贸易协定，包括货物贸易、服务贸易、投资和经济技术合作四个领域。这项协议显示了授予香港投资者与其他外国投资相比的特殊利益。例如，香港投资者可以在中国设立100%独资的医疗机构。而外国投资者最多可以持有不超过70%的所有权。

如想了解更多信息，请与我们联系。

您可能想要了解：外商独资​​注册办事处的要求是什么？

自2016年以来，中国简化了注册程序

在香港设立公司时，您需要向公司注册处申请公司注册证书，除公司注册证书外，您还需要向税务局申请商业登记。同样，如果您想在中国设立公司，您必须在国家工商行政管理总局（SAIC）获得营业执照。自 2016 年 10 月 1 日起，中国简化了注册流程，下面我们来分享一些有关中国注册的信息。

简化的注册流程
从2016年10月1日起，中国将5项认证和注册整合为1个综合营业执照。是指将《营业执照》、《组织机构代码证》、《税务登记证》、《社会保障登记证》和《统计登记证》合并为统一的营业执照和统一的社会信用代码。作为国家工商登记改革的一部分，合并降低了实体的制度成本并激发了市场活力。

国家工商行政管理总局（SAIC）的工作职责是什么？
工商总局不仅为新企业颁发营业执照，还负责消费者权益和商标注册。企业须向工商总局提交年报，如果企业未能按时提交年报表，工商总局将相应吊销其营业执照。

中国企业法人类型
外商投资企业VS本土企业
在中国，定义实体的方式可能与香港略有不同。例如，如果您要成立一家有限公司，就会非常复杂。如果你想成立一家无限公司，那么就要考虑到国籍和股东的比例。假设海外股东持有公司 25% 以上的股权，该公司是外商投资企业（FID）。否则，它是一家本地企业。

外商独资​​企业？合资企业？本地企业？
如果要成立有限责任公司，其概念与有限公司相同。如果所有股东都是本地中国大陆人，那么它就是本地企业。虽然是 100% 海外股东，但它称为外商独资企业 (WFOE)。海外股东拥有超过25%的股份，是中外合资企业。如果低于 25%，则为本地企业。

从中国的角度来看，海外股东包括港澳台企业家。

如想了解更多信息，请与我们联系。

您可能想要了解：中国公司。什么是外商独资企业？

China Simplified its Incorporation Process since 2016

When setting up a business in Hong Kong, you need to apply for a Certificate of Incorporation from the Company Registry. Apart from the Certificate of incorporation, you will need to apply for Business Registration in Inland Revenue Department.  Similarly, if you want to setup a company in China, you have to obtain a business license in State Administration for Industry and Commerce (SAIC).  Since 1st October 2016, China has simplified the incorporation process, in below, we will share some information about China incorporation.

Simplified Incorporation process 

Started from 1st October 2016, China integrated 5 certifications and registrations into 1 consolidated business license. It means integration of  Business License, Organisation Code Certificate, Tax registration certificate, Social Security Registration and Statistical Registration Certificate into a unified business license with a unified social credit code. The integration reduces the institutional costs for entities and stimulate market vitality as part of the country’s business registration reform. 

What are the job duties of State Administration for Industry and Commerce (SAIC)?

SAIC not only granting the business license to new business enterprise, but also responsible for Consumer Right and registration of Trademark. Enterprises have to submit the Annual Returns to SAIC. If the enterprise failed to file the Annual Returns on time. SAIC will revoke the business license accordingly. 

Types of Business Entity in China 

Foreign Investment Enterprise Vs Local Enterprise

In China, the way to define an entity might slightly difference from Hong Kong. For example, if you want to set up a limited company, it will be very complicated. If you want to set up an unlimited company, then it takes the nationality and the percentage of shareholder into account. Let say, if the overseas shareholders hold more than 25% ownership of the company. The company is a Foreign Investment Enterprise (FID). Otherwise, it is a local enterprise. 

Wholly Foreign Owned Enterprise ? Joint Venture Enterprise? Local Enterprise?

If you want to establish a Limited Liability Company, the concept is the same as limited company. If all shareholder is local mainland Chinese, then it is a local enterprise. Whilst 100% overseas shareholder, it calls Wholly Foreign Owned Enterprise (WFOE). If there is over 25% Share ownership owned by overseas shareholders. It is Sino-Foreign Joint Venture Enterprise. If less than 25%, then it is a local enterprise.

From the China point of views, Overseas shareholders are including entrepreneurs from Hong Kong, Macau and Taiwan.

For further information, please contact us.

You may want to read: COMPANY INCORPORATION IN CHINA. WHAT IS A WFOE?

Differences between Local Enterprise & Foreign Enterprise in China

When we are setting up a business in Hong Kong, there isn’t any difference for a local person or an overseas expat setting up a Hong Kong Limited. However, when you setup an entity in China as a foreigner, there are differences between a local and a foreign investment enterprise.

 

Local Enterprise

First of all, local enterprise can only be setup by local Mainland Chinese, this exclude Hong Kong, Macau or Taiwan born Chinese. Local enterprise is simple to establish. Firstly, you apply online on the State Administration for Industry and Commerce (SAIC) website. Once you have the pre-approval registration. All you need is to bring the required documents e.g. Article of Associations to SAIC. SAIC will grant you the Business License. Once you have the Business License, it means your company is established officially. 

For certain industry like insurance company, there is a special requirement in China. You may need an approval from China Insurance Regulatory Commission.

Foreign Investment Enterprise

Foreign Investment Enterprises are applicable for any non-mainland Chinese persons.  In order to setup, you will required to have below information and proof before you can setup the enterprise.

  • Residential address
  • Registered address
  • Registered capital
  • Business time frame
  • Business code of scope

In addition, you will need to complete the pre-approval of the name. Filing to the local Ministry of Commerce. And then registered with the State Administration for Industry and Commerce. The Ministry of Commerce will review the foreign investors whether in the allowed industry.

China Negative Lists and Encouraged Catalogue for Foreign Investment

The National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOF) work closely together to create the China Negative Lists and Encouraged Catalogue.  Entry into the Chinese market is regulated by the country’s negative lists and encouraged catalogue for foreign investment. The catalogue stipulates restricted or prohibited sectors and listed out sectors open to foreign investors. Foreign investors can use the negative list and encouraged catalogues to identify the industries and have better understand of what businesses they are allowed to setup.

Special Arrangements between Hong Kong and China with the Closer Economic Partnership Arrangement (CEPA)

CEPA is a free trade agreement concluded by the Mainland and Hong Kong covering four areas, namely trade in goods, trade in services, investment, and economic and technical cooperation. This agreement shows the special benefits granted to Hong Kong Investors receive comparing with other foreign investments. For instance, Hong Kong investor can establish a 100% wholly owned medical organisation in China. While foreign investors can hold no more than 70% ownership.

For further information, please contact us.

You may want to read: WHAT IS THE REQUIREMENT FOR A WFOE REGISTERED OFFICE?

外商独资 注册办事处的要求是什么？

什么是外商独资企业？
WFOE 代表外商独资企业 ，是一家在中国注册的公司，由外国投资者为个人或法人独资。

外商独资企业是非中国公民或非中国法人实体在中国大陆设立外资有限责任公司的常见业务设置。外商独资企业是由外国投资者全资拥有的有限责任公司。外商独资企业的独特之处在于不需要中国大陆投资者的参与，与大多数其他可供外国人利用的投资工具不同，这些投资工具可在中国大陆设立企业实体。

对中国外商独资企业注册地址的要求是什么？
外商独资​​企业注册地址，是指外商独资企业在政府部门正式经营业务的注册地址。注册地址还用于注册外商独资企业的许可证、证书和章程。政府官员通过电话联系企业家，而不是访问外商独资企业所在点。因此，企业家可以在真实办公室或虚拟地址中注册外商独资企业。

注册地址常见问题
1/ 我们可以使用居住地址来注册外商独资企业吗？
不，我们不能使用居住地址来注册外商独资企业，我们必须使用商业地址进行注册。

2/ 我们可以使用住宅和商业用途地址来注册外商独资企业吗？
是的，我们可以使用它。但请确保该物业在所有权证书中注明商业和住宅用途。

3/ 我们可以使用商业大楼或仓库来注册外商独资企业吗？
是的，我们可以使用它。条款和条件是相同的地址，没有被任何其他公司注册。

4/ 我们可以使用车库注册外商独资企业 吗？
不，我们不能。

5/ 实体办公和虚拟地址的优缺点是什么？
稳固办公室的优势：您可以在最合适的环境和办公室中工作。您可以在业务合作伙伴之间发送和接收包裹。

虚拟地址优势：设置成本低；适合预算有限的创业者。

实体办公室的缺点：设置成本相对较高。如果您想搬迁您的外商独资企业，会比较复杂，因为您需要找到一个新的注册地址并更改您的外商独资企业的注册地址。

虚拟地址的缺点：您没有自己的办公空间供您在其工作。

如想了解更多信息，请与我们联系。

您可能想要了解：什么是在中国注册的外商独资企业公司？

WHAT IS THE REQUIREMENT FOR A WFOE REGISTERED OFFICE?

What is a WFOE?

WFOE stands for Wholly Foreign Owned Enterprise – a China registered company which is wholly owned by foreign investors for either individual or corporate.

WFOE is a common business setup by which non-Chinese nationals or non-Chinese corporate entities incorporate a foreign-owned limited liability company in Mainland China. A WFOE is a limited liability company which is wholly-owned by foreign investor(s). The unique feature of a WFOE is no need to involve of a mainland Chinese investor. Unlike most other investment vehicles available for foreigners to utilize to set up a corporate entity in Mainland China. 

What is the requirement for a China WOFE’s Registered Address?

A WOFE’s registered Address means the address registered in government departments for a WOFE to operate its business officially. The registered address also uses for the registration of the Licenses, Certificates and Articles of a WOFE. The government officers will contact the entrepreneurs by telephone instead of visiting the WOFE location. So, entrepreneurs can register WOFEs in a real office or a virtual address.

Frequent Asked Question of Registered Address

1/ Can we use a residential address to register a WOFE?

No, we can’t use a residential address to register a WOFE. We have to use a commercial address for the registration.

2/ Can we use a residential and commercial use address to register a WOFE?

Yes, we can use it. But please make sure the property has an indication for both commercial and residential use in the ownership certificate.

3/ Can we use a Business Building or Warehouse to register a WOFE?

Yes, we can use it. The terms and conditions are the same address is not registered by any other company.

4/ Can we use a garage register a WOFE?

No, we can’t

5/ What are the advantages and disadvantages between solid office and virtual address?

Advantage for solid office: You can work in your office with the best fit setting and environment. And you can send and receive packages between your business partners.

Advantage for virtual address: The setup cost is low; Good for startup entrepreneur with limited budget.

Disadvantages for solid office: The setup cost is relatively high. If you want to relocate your WOFE, it will be more complicated as you need to find a new registered address and change the registered address of your WOFE.

Disadvantages for virtual address: You don’t have your own office space for you to work in it.

For further information, please contact us.

You may want to read: COMPANY INCORPORATION IN CHINA. WHAT IS A WFOE?

 

2ND ROUND OF EMPLOYMENT SUPPORT SCHEME APPLICCATION DETAILS ANNOUNCED

The Hong Kong Government has announced the application details for the 2nd payment instalment of Employment Support Scheme (ESS). Eligible employers may submit their applications for the 2nd tranche wage subsidies from 31st August to 13th September 2020.

Submit New Application

Employers who previously applied for the 1st tranche of the wage subsidies for wages paid from June to August 2020. Employers must submit a NEW APPLICATION. ESS will not automatic apply for you.

Quick apply for the previous applicant

If applicants choose the same “specified month” as the 1st tranche in the application for the 2nd tranche of subsides. Then applicants can type in the previous application number, password and mobile number to logon the application webpage for the 2nd tranche. And then the application webpage will automatically display information submitted for the 1st tranche of application. So, applicant can just simply check with the information is correct or not.

Difference from previous application

If applicant choose a different “specified month” from the 1st tranche. Applicant should follow the instructions in the online application form to upload documents and update information. For example, providing additional MPF account information.

Difference bank account information

Applicant cannot change the bank account information in the online application form. If applicants need to amend the information of the bank account information due to special circumstances. Applicant should login to the Employment Support Scheme Application Service Portal. According to the instructions in the online application form, and upload the relevant bank statement or other related supporting documents for verification and follow up.

For further information, please contact us.

You may want to read: 3RD ROUND ANTI-EPIDEMIC FUND : EMPLOYMENT SUPPORT SCHEME