Establishing a Firm in China and the UK: Timeline and Key Issues


We focus on the timeline and key concerns for establishing an organization in China and the UK.


This sequence focuses on the UK-China commerce angle. Each week, we’ll add a brand new video that solutions among the most often requested questions on establishing an organization in China and the UK. Every video solutions the identical points from each China and the UK perspective.

Key insights shall be supplied by Maria Kotova, Head of UK & Eire Enterprise Improvement and China Market Entry Director at Dejan Shira & Associates and Lisa Gui, Assistant Supervisor at HW Fisher.

When you have any questions on doing enterprise in China or the UK, contact us at UK.Eire@dezshira.com.

Episode 10: How lengthy does it take to register an organization in China and the UK?

How lengthy does it take to register an organization in China?

Overseas funding within the Folks’s Republic of China (hereinafter “China”) could also be made by way of certainly one of a number of forms of funding automobiles. Deciding on the suitable funding construction for your online business relies on plenty of components, together with its deliberate actions, business and the dimensions of the funding.

Whereas numerous funding choices and entities can be found, we’ll focus solely on Overseas Owned Enterprises (WFOEs).

A WFOE is a restricted legal responsibility firm wholly owned by a number of international buyers, offering a really simplified administration construction.

In contrast to RO, a WFOE could make a revenue and subject native invoices in RMB to its suppliers. A WFOE can straight rent native employees with out the obligations of using the providers of an employment company. A WFOE can even increase to kind subsidiaries in China.

And in comparison with a JV, a WFOE has higher autonomy and adaptability to execute the corporate insurance policies focused by the buyers with out contemplating the Chinese language accomplice. Additionally it is identified to be higher at defending the corporate’s mental property and expertise.

Nevertheless, the setup strategy of WFOE is extra sophisticated. and WFOE isn’t viable if the goal space is listed as “Restrictive”. Particular Administrative Measures on Entry to Overseas Funding (“Nationwide Detrimental Record”) or Particular Administrative Measures (Detrimental Record) for Overseas Funding Entry to Experimental Free Commerce Zones. (“FTZ Detrimental Record”), the place international buyers are required to have a Chinese language fairness accomplice to kind a enterprise. In different phrases, WFOEs is not going to be permitted to have interaction in these sectors. Traders making an attempt to take action will see their utility rejected. WFOEs who have interaction in these actions illegally after being caught face fines and even cancellation of their enterprise license.

There are three totally different WFOE setups obtainable:

  • Service (or Consulting) WFOE;
  • Buying and selling WFOE (or Overseas Invested Business Enterprise [FICE], And
  • Manufacturing WFOE.

Whereas all three constructions share the identical authorized id, they differ considerably when it comes to their setup procedures, prices, and the vary of enterprise actions during which they’re allowed to have interaction. Buying and selling WFOE and Manufacturing WFOE should derive most of their income from the enterprise of their identify however can present associated providers as effectively. Service WFOEs are moreover permitted to conduct enterprise actions associated to their providers.

Timeline and setup course of when establishing a international funding construction in China:

Establishing a international funding construction in China sometimes takes between three and 6 months and includes the next authorities authorities:

  • Ministry of Commerce (MOFCOM) and its native branches;
  • State Administration for Market Regulation (SAMR) and its native branches;
  • State Administration of Overseas Alternate (SAFE) and its native branches;
  • State Taxation Administration (STA) and its native branches;
  • Normal Administration of Customs (GAC) and its native branches; And
  • Nationwide Bureau of Statistics (NBS) and its native branches.

The setup course of varies relying on one’s chosen funding construction and deliberate enterprise sector. For instance, manufacturing WFOEs want to finish an environmental evaluation report, whereas buying and selling WFOEs have to adjust to customs/commodity inspection necessities.

Under we take WFOE for instance to display the setup course of:

wfoe-setup-processes-in-china

How lengthy does it take to register an organization within the UK?

UK firm formation timelines are brief, after you have chosen an organization identify and have the related data prepared, an organization will be fashioned and registered inside 24 to 48 hours after the appliance is made Is. Nevertheless, opening a enterprise checking account, registering a trademark, and so forth. can delay the method. You will need to point out that when the corporate is registered, it is possible for you to to function your online business whereas the opposite elements usually are not absolutely finalized.

The consultants at HW Fisher say, “It can be crucial that you just register for company tax inside 3 months of beginning a enterprise. As well as, you could have to register as an employer and pay payroll taxes.” Should you make use of UK-based workers, in addition to your VAT standing as highlighted above.


View extra from the sequence

episode 9

VAT Compliance UK China

episode 8

episode 7

Choosing a Company Name Strategy

episode 6

How to Define Business Scope - China vs UK

episode 5

Importance of Trademark Registration in China

Episode 4

episode 3

Opening a Business Bank Account in the UK and China Video Discussion

episode 2

Requirement of office premises when registering a company in China and UK video discussion

episode 1

Company Holding Structure - China and the UK - Video Discussion


about us

China Briefing is written and produced by Dejan Shira & Associates. The follow assists international buyers in China and has executed so since 1992 by way of places of work in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen and Hong Kong. Please contact the agency at uk.eire@dezshira.com for help in China.

Along with our enterprise analysis amenities alongside the Belt and Street Initiative, Dazen Shira & Associates has places of work in Vietnam, Indonesia, Singapore, the US, Germany, Italy, India and Russia. We even have accomplice corporations aiding international buyers in Philippines, Malaysia, Thailand, Bangladesh.



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