Can foreigners set up companies in China?
First of all, it is necessary to clarify the investment industry and business scope of the company. Governments encourage foreign investment in some industries, restrict it in others, and ban it altogether.
Next, want clear company shareholder, shareholder is legal person share or natural person share. This involves submitting different application materials later. In addition, it should be clear whether the industry license is involved? Is it pre-approval or post-approval?
Also, is it an investment-production enterprise, a trading enterprise, or something else? Some local governments have certain requirements on the annual tax amount of production enterprises, if lower than the target may not be allowed to settle; If it is trade type, does it involve import and export business?
We assume that the foreign-funded enterprise is a consulting company with only one natural person shareholder, and the general process is as follows:
1) Company name review
2) Industrial and commercial registration
3) Seal (company seal, legal person seal, financial seal, invoice special seal, contract seal)
4) Tax registration
5) Bank account
If the foreign investor needs to work in China, after obtaining the relevant certificate of the company, he/she also needs to apply for a foreigner's work permit in China and a work-type residence permit.
After the above formalities are completed, normal business activities can be carried out. It is not particularly different during the pandemic and may be slower than usual.
[Special note] : If the shareholders through the "investors" channel for foreigners to work permit in China, special attention should be paid to: It seems to be easy (education and relevant work experience are not required), but the subsequent extension or cancellation is particularly troublesome. If the company does not meet the relevant requirements of the government, it may not be able to extend or cancel the work permit, resulting in the applicant on the blacklist, and no longer apply for the work permit for foreigners in China.
For more services for foreigners in China, please continue to pay attention to cnvisa service platform for foreigners in China.