Written by: Bruce Mitchell

Edited and Published by: William Billeaud

Before you can import or purchase any equipment for your China operations you need to create a Chinese company or Wholly Owned Foreign Investment. You will need to create a company for every location in China. You can’t just create one company and then build facilities elsewhere. It is different from in the US, where you simply need to consider llc vs inc advantages and the like.
The procedure is long and somewhat arduous. In my book “13 Steps to Manufacturing in China” I liken the entire procedure to climbing the Great Wall of China! Some steps are quick and some take time to develop and get approved along the way.
Following are the items that must be developed and submitted along with any other items specific local requirements of the City to the City Foreign Investment Committee for approval:

1. Application form

2. Articles of Association

3. Feasibility study

4. A pre-approved name along with the following:

A. Parent company’s business license plus Board resolution
B. List of Board of Directors of the new company along with each director’s resume
C. Bank reference
5. Apply for the business license with the Business License Bureau.

6. Apply for a Company Chop with the Security Bureau.

7. Apply for a Company ID code.

8. Apply for a bank account and foreign currency registration.

9. Obtain the IDs with the Customs, Inspection Bureau, Tax Bureau, and City Finance Bureau.

10. File the application for industry and commerce for registration

11. Receive your business license.

12. After establishment of the business follow the procedures for taxation registration with the tax authorities.

 

For the specific details of the above including the actual document formats you can find this and more in Chapter 9 Establishing a Company of “13 Steps to Manufacturing in China”.

 

 

投 資 申 請 表

APPLICATION FORM FOR THE COMPANY

APPLYING FOR THE ESTABLISHMENT OF

A FOREIGN CAPITAL ENTERPRISE

å¡«å¯«ç”³è«‹è¡¨é ˆçŸ¥
N O T E S

1.本申請表應由投資者本人或投資ä¼æ¥­çš„æ³•å®šä»£è¡¨ç°½ç½²ï¼Œæˆ–ç”±ä¸Šè¿°å…©è€…çš„æŽˆæ¬Šä»£è¡¨ç°½ç½²ï¼ˆæŽˆæ¬Šä»£è¡¨é ˆæ交綔公證的法定代表的授權書)。
The present application form should be signed by the investor himself, or by the legal representative of the enterprise, or by a representative authorized by both the above-mentioned two persons (the authorized representative shall submit a notarized letter of authorization.)

2.當投資者爲個人時,”投資者å稱”與”法定地倔應填寫個人委å與居ä½åœ°å€ã€‚
In the case that the investor is an individual, the blanks next to “Name of the Company” and “Legal Addresses” are to be filled with the individual’s name and his/her home address.

3.”董事會組戔一欄請寫明首屆董事會æˆå”¡å單。
The item of “Composition of the Board of Directors” is for the name list of the first board of directors.

4.除注明欄目外,本表åŠå…¨éƒ¨é™„件請以中文書寫。
Except for the noted items, all the other items and all attachments of the application form should be filled in Chinese.

5.本表åŠå…¨éƒ¨é™„件應æ交一å¼å››ä»½ã€‚
The present application form and all its attachments should be submitted in four copies.

申請設立外資ä¼æ¥­çš„å…¬å¸
(下稱公å¸)的情æ³
INFORMATION CONCERNING THE COMPANY APPLYING FOR THE ESTABLISHMENT OF A FOREIGN CAPITAL ENTERPRISE (HEREINAFTER THE “COMPANY”)
1.投資者å稱 Name of the Company
中文 Chinese:
英文 English:
2ï¼Žæ³•å®šåœ°å€ Legal Address:
中文 Chinese:
英文 English:
å…¶ä»–åœ°å€ Other Address (if any)

3.投資者所在的國家或地å€
Country or Jurisdiction of Incorporation:

4.公å¸æˆç«‹æ-¥æœŸ
Date of Incorporation:
5.法定代表委å Name of the Legal Representative
中文 Chinese:
英文 English:
6.綔營範åœ
Business Scope:
7.生産è¦æ¨¡
Scale of Production:
8.資産總é¡
Total Assets:
9.註冊資本
Registered Capital:
10.銀行
Bank:
11.已投資的國家或地å€
Countries Where Investment Has Been Made:

12.公å¸åœ¨è¯è¯ç³»äººå§”å
Name of the Contact Person for Company in China:
地å€
Address:
電話
Telephone Number:

攬在中國設立的外資ä¼æ¥­
THE FOREIGN CAPITAL ENTERPRISE TO BE ESTABLISHED IN CHINA:

1.外資ä¼æ¥­å稱 Name of the Foreign Capital Enterprise:
中文 Chinese:
英文 English:
2.地å€
Address:
3.投資總é¡
Total Amount of Investment:
4.註冊資本
Amount of Registered Capital:
5.投資的構æˆ
Form of Investment:

a.外匯
Foreign Currency:
b.設備
Equipment:
c.其他
Other:
6.出資期é™æˆ–計劃
Deadline or Schedule for Collection of Investment:

7.需è¦çš„土地é¢ç©å’Œå»ºç¯‰é¢ç©
Land Surface Area and Building Surface Area Needed:

a.辦公室
Office:
bï¼Žç”Ÿç”£å» æˆ¿
Manufacturing:
c.其他建築
Other Buildings:
8ï¼Žé …ç›®æƒ…æ³
Project Conditions:
a.綔營範åœ
Scope:

b.生産è¦æ¨¡
Production Scale:

c.主è¦åŽŸæ–™
Raw Materials:

d.原料來æº
Materials and Their Sources:
eï¼ŽéŠ·å”®å¸‚å ´
Market for Sales:
f.出å£æ¯”例
Export Ratio:
9.ä¼æ¥­ç®¡ç†
Management of the Foreign Capital Enterprise
a. 董事會組æˆ
Composition of the Board of Directors:

b. 管ç†æ©Ÿæ§‹å’Œé«˜ç´šè·å”¡
Management Offices and Senior Staff:

c. 財務制度
System of Financial Affairs and Accounting:

d. è·å·¥ç¸½æ•¸
Total Staff and Workers:
外ç±è·å·¥
Foreign Staff and Workers:
管ç†äººå”¡
Management Personnel:
工 人
Workers:
é …ç›®å»ºè¨­å’ŒåŸ·è¡Œ
CONSTRUCTION AND IMPLEMENTATION OF THE PROJECT

1ï¼Žè©²é …ç›®å°‡ä½¿ç”¨çš„æŠ€è¡”
Technology to Be Used in Carrying out the Project:

2ï¼Žè©²é …ç›®å°‡ä½¿ç”¨çš„ä¸»è¦æ©Ÿå™¨è¨­å‚™
Machinery and Equipment to Be Used for the Project:

3ï¼Žé …ç›®æ‰€éœ€æ°´ã€é›»ã€æ°£ã€ç‡ƒæ–™ç­‰ç”¨é‡
The Volume of Water, Electricity, Gas, Fuel, etc. Which Will be Needed by the Project:
水 Water:
電 Electricity:
燃料 Fuel:
4.三廢處ç†æŒ‡æ¨™ã€å®‰å…¨æŒ‡æ¨™
The Standard of the Treatment of “Three Wastes” and the Security Standard:

5.計劃建設進度
Schedule of Planned Construction:
第一年
1st Year
第二年
2nd Year
6.投産æ-¥æœŸ
Staring Date for Production:

7.投資後三年計劃産é‡
Quantity of Products Planned in the First Three Years of Production:
第一年
1st Year
第二年
2nd Year
第三年
3rd Year
8.在中國購置的主è¦åŽŸææ–™
Principal Raw Materials to Be Purchased in China:
第一年
1st Year
第二年
2nd Year
第三年
3rd Year

外資ä¼æ¥­ç¶”營期é™
TERM OF OPERATION OF THE FOREIGN CAPITAL ENTERPRISE:

投資者åŒæ„以下æ¢æ¬¾ä½œçˆ²è¨­ç«‹å¤–資ä¼æ¥­çš„基礎
THE COMPANY HEREBY AGREES TO THE FOLLOWING CONDITIONS FOR THE ESTABLISHMENT OF THE FOREIGN CAPITAL ENTERPRISE:
1.外資ä¼æ¥­çš„ä¸€åˆ‡æ´»å‹•éƒ½å¿…é ˆéµå®ˆä¸­è¯äººæ°‘共和國的法律ã€æ³•ä»¤å’Œæœ‰é-œè¦å®šä¸¦å-å…¶ä¿è­·ã€‚
All activities of the foreign capital enterprise shall comply with and be protected by the laws, degrees, and relevant regulations of the People’s Republic of China.

2.外資ä¼æ¥­æ‡‰æŒ‰ç…§ä¸­è¯äººæ°‘共和國的法律ã€æ³•ä»¤å’Œæœ‰é-œäº¤ç¨…è¦å®šäº¤ç´æœ‰é-œç¨…款。
The foreign capital enterprise shall pay the relevant taxes in accordance with the laws, degrees and relevant regulations of the People’s Republic of China.
å…¬å¸ï¼š
Company:
ç°½å­-:
Signature:
æ-¥æœŸï¼š
Date:

附件:
Attachments:
1.外資ä¼æ¥­ç« 程;
Articles of association of the foreign capital enterprise
2.公å¸ç™»è¨˜è¨»å†Šç™»è¨˜è­‰æ˜Žï¼ˆå‰¯æœ¬ï¼‰;
Evidence of incorporation of the company (copy)
3.外資ä¼æ¥­å¯è¡Œæ€§ç “ç©¶å ±å‘Š;
The report of feasibility study for the foreign capital enterprise
4.投資者開戶銀行出具的資信證明;
Capital and credit certificate on the investor made out by the investor’s bank
5.外資ä¼æ¥­éœ€é€²å£çš„原輔ææ–™ã€æ©Ÿæ¢°è¨­å‚™ã€è¾¦ååŠäº¤é€šå·¥å…·æ¸…單(包括å”åã€è¦æ ¼åž‹è™Ÿã€å–®åƒ¹ã€ç¸½å€¼ï¼‰ã€‚
A list of the raw/auxiliary material, machinery and equipments, office apparatus and transportation means (including the name of the article, the modal and specifications, the unit price and the total value) to be imported by the foreign capital enterprise.

 

About the author: Bruce Mitchell

As Vice President, Engineering in the Magnetics Division at Spang and Company for 13 years, Bruce Mitchell’s responsibilities included overseeing strategic business growth, production capacity maximization, plant expansions, maintenance, engineering and environmental initiatives. He managed department managers, a staff of buyers, project managers, designers, and electrical, mechanical, civil, and environmental engineers. He oversaw the Division’s global facilities and manufacturing equipment installations. Through his department equipment was identified and purchased. He was also responsible for the design and fabrication of in-house testing and automation equipment. From 2003 to 2012 he had overall responsibility for the relocation of all manufacturing to China. Potential locations were identified and selected, Chinese equipment was sourced and purchased and installed in a pilot operation in parallel with the design and construction of a new Greenfield plant and later expansion into a second facility. The Asian expansions required the creation of two wholly-owned foreign enterprise. From his experiences he wrote and had published by Palgrave MacMillan in 2012, “13 Steps to Manufacturing in China, The Definitive Guide to Opening a Plant, From Site Location to Plant Start-Up”. Purchase from Amazon. Bruce held numerous engineering supervisory and managerial roles at Honeywell Corporation from 1974-1989. Mr. Mitchell received his Bachelor and Master of Science degrees in Mechanical Engineering from Virginia Polytechnic Institute & State University (Virginia Tech), Blacksburg, Virginia and a Master of Business Administration from Virginia Commonwealth University, Richmond, Virginia.