What preparations do overseas companies need to make to invest in China?

As a foreign-funded enterprise, to enter the mainland market to carry out business activities, it can adopt the modes of setting up domestic offices, brand authorization, setting up Sino-foreign joint ventures and wholly foreign-owned enterprises in the mainland. No matter what kind of operation mode, applicants need to apply for the qualification certificate of overseas companies, which will be notarized by a notary agency entrusted by China and stamped with the transfer stamp before the qualification certificate can be legally used in the Mainland. The mode of overseas companies' investment and operation in the Mainland is: domestic offices of overseas companies only need to set up domestic offices in overseas companies if their business activities in the Mainland are only business contacts. According to relevant laws and regulations, representative offices of overseas companies are not allowed to conduct accounting and tax registration alone. The domestic office only plays the role of business liaison, can not engage in any business activities, nor can it form a direct purchase and sale relationship with customers alone. In other words, you can only spend money, not income. Therefore, this model is not suitable for overseas companies to conduct business in the Mainland.

1, brand authorization mode, overseas companies and mainland companies authorize mainland enterprises by signing authorization agreements. Mainland enterprises have full authority to conduct business in the Mainland on behalf of overseas enterprises, promote overseas enterprise brands, and operate with the help of Hong Kong enterprise brands. This way can effectively save costs, so it is also a common business model for overseas companies to operate in the mainland.

2. Sino-foreign joint ventures (wholly foreign-owned enterprises) Sino-foreign joint ventures (wholly foreign-owned enterprises) are foreign-invested enterprises investing in the mainland in the name of overseas companies. The operation process is more complicated than the above two methods. First, we must go to the foreign economic and trade commission where the business premises are located for examination and approval, and then carry out industrial and commercial registration and tax registration. The establishment of a foreign-invested enterprise (joint venture or sole proprietorship) requires capital verification. To invest in the mainland, you need to remit funds from abroad in the form of foreign exchange. Foreign-funded enterprises engaged in business activities in China must abide by the laws and regulations of China and shall not harm the social interests of China. The establishment of foreign-invested enterprises must be conducive to the development of China's national economy and achieve remarkable economic benefits.

Before applying for the establishment of a foreign-capital enterprise, a foreign investor shall report the following matters to the local people's government at or above the county level where the foreign-capital enterprise is to be established. The contents of the report include: the purpose of establishing a foreign-funded enterprise; Scope and scale of business; Production of products; Technical equipment used; Land area and requirements; Conditions and quantities of water, electricity, coal, gas or other energy sources required; Public facilities and other requirements. The local people's governments at or above the county level shall give a written reply to foreign investors within 30 days from the date of receiving the reports submitted by foreign investors. How do foreign-invested enterprises apply for subject qualification certificates? When establishing a foreign-invested enterprise, the subject qualification certificate is divided into the following categories: foreign language subject qualification certificate. Natural person: in China, the original and photocopy of the client's passport and visa can be provided; If you are not in China, you need to provide the original documents issued by the competent state department, notarized by the notary office and certified by the China Embassy; Companies and enterprises: provide the original notarized by the notary office of the host country and certified by the Embassy of China. Qualification certificate of Hong Kong and Macao units: natural person: local permanent identity card, SAR passport, residence permit issued by mainland public security (without notarization) or mainland pass (without notarization). Enterprise legal person: notarized documents issued by local notary organs shall be handed over by designated institutions.