China Company Start-up Checklist Part III
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China Company Start-up Checklist: Part III
Introduction
This guide is the third part of our comprehensive checklist for starting a company in China. Please ensure you have read Parts I and II before proceeding.
Key Steps After Receiving Your Business License
Once your Business License is in hand, there are several important steps to address promptly:
1. Obtain Necessary Construction Permits
The process for obtaining construction permits varies by location and project type. Typically, an Environmental Impact Assessment will be required. It's crucial to consult with your examination and approval authority early in the project approval stage, as initial preparations might be necessary.
2. Recruiting Chinese Employees
The Administrative Office of Foreign Invested Enterprises at the municipal Labor Bureau can assist in recruiting Chinese employees. Most enterprises can hire independently, though restrictions may apply for Representative Offices.
3. Recruiting Foreign Employees
For companies wishing to hire non-Chinese nationals, there are specific steps to follow:
1. Approval: Get approval from the Foreign Employment Administration Office of the local Labor Bureau to hire foreign nationals.
2. Work Visa Application: Foreign nationals can apply for a work visa at a Chinese embassy or consulate, often in their home country or Hong Kong.
3. Registration: Upon arrival in China, foreign nationals must register with the local Public Security Bureau within 24 hours.
4. Medical Examination: A half-day medical exam is required at a designated clinic in China.
5. Work Permit Application: Employers must apply for a work permit, submitting documents like passport copies, photos, a resume, relevant licenses, medical report, and employment contract.
6. Residence Permit: After obtaining a work permit, foreigners must apply for an Alien Residence Permit.
7. Tax Registration: Employers must register foreign nationals with local and national tax bureaus.
8. Customs Registration: If shipping personal items, registration with the Customs Bureau is needed.
For residents of Taiwan, Hong Kong, or Macau, employers must apply for work permits through the Employment Administration Office for Compatriots.
Important Notes
1. Bureau Addresses: Bureau and department addresses vary by location and project specifics. It's advisable to consult an experienced local consultant or attorney.
2. Changes in Registration: Any changes in your enterprise’s registered details must be approved by registration authorities. Immediate registration of changes is necessary following amendments such as relocating or altering capital.
3. Additional Procedures: Additional steps may be necessary based on your industry or location, such as registering to join an industrial park.
Procedures for Wholly Foreign Owned Enterprises (WFOE)
Establishing a WFOE involves similar steps to those for Joint Ventures, with some distinctions:
- A WFOE requires an authorized agent to submit application documents. This person must be a Chinese individual or entity, such as a lawyer or registration service.
- The agent uses a Letter of Entrustment instead of a Joint Venture contract during the examination and approval process.
- Shareholder agreements may be needed when multiple foreign investors are involved, and these may be governed by foreign laws.
Conclusion
This checklist provides a streamlined approach to navigating the complexities of starting a business in China, whether through a Joint Venture or a Wholly Foreign Owned Enterprise. Always seek professional guidance to ensure compliance with local laws and regulations.
You can find the original non-AI version of this article here: China Company Start-up Checklist Part III.
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