As a UAE entrepreneur, one of the burning questions in your mind might be, “How do I grow my business into a respected multinational?” The answer is that your business needs a number of things, including good financial management and the right strategies. Besides, you need to register your business offshore, and China is a great option. Here are some common benefits of opening a business in China:
- World-class infrastructure.
- A large market of more than 1.3 billion people.
- A very supportive administration.
- Have signed many bilateral agreements that make expanding business easy.
- Numerous opportunities for investors.
The benefits of taking your business to China are a lot more than the list we have provided above, but you need to start by registering it. Here is a complete guide to company incorporation as a UAE entrepreneur
Select the Preferred Company Scope
In China, the government puts a lot of emphasis on the scope of businesses. This focus is used to help attract investors into specific areas of the economy and promote faster growth. As a foreigner, your target should be on the encouraged industries.
For example, the manufacturing sector in China has exploded in the last two decades because it is in the encouraged industries. Therefore, you might want to follow the same route. If you opt for the restricted industries, they might come with additional requirements, such as limited shareholding.
Prepare the Documents Required for Company Incorporation
Before your company can be allowed to operate in China, the following documents must be prepared and used for registration.
- Company name: To get the approval for your company name, you have to apply with the Administration of Industry and Commerce.
- List of controlling partners: These are the people who have the majority of shareholding in the company that you are registering in China.
- Managerial structure: This is an operational profile of your business, including the managers, board of directors, legal representatives, and supervisors.
- Legal Address: This is the official address or the headquarters of your company.
- Articles of Association: This is an important document that captures important details of the company, such as business description and its scope.
- A feasibility study: This document is used to demonstrate to the authorities that the business you are about to start is viable. Make sure to include a good plan as well as a budget for the business.
Apply for Approval Certificate
To get an approval certificate and company operating license, you have to apply to two separate departments, State Administration of Industry and Commerce (SAIC) and the Ministry of Commerce (MOFCOM). Once your license is approved or declined, these entities will notify you.
Apply for Business License
Armed with a business certificate, you should move to the next step, which is seeking additional licenses depending on the targeted niche. For example, if you are in telecoms, construction, manufacturing, or food, additional licenses will be required.
Register with the Public Security Bureau
This is another crucial step in company registration because it helps you to get company chops. The chops are very important in China, and you cannot validate a contract without them.
Work With an Agency to Register Your Company in China
As you can see, the process of company incorporation as a UAE entrepreneur in China is lengthy and involves dealing with multiple entities. Also, the documents required are many and can be challenging to prepare. To simplify the process, consider working with a good agency for company incorporation in China. The agency will hold your hand during the incorporation processes as well as the early phase of establishment.