How to open a company in Shenzhen

company in Shenzhen

How do you open a company in Shenzhen? Well it is not quite as easy to do as it is in the UK, but it is not nearly as difficult as it used to be. There is though a lot of bureaucracy.

And it is not the first time that I have done this, in fact it is my 4th. Why am I doing it? In order to facilitate the business of YPT. Enough said…..

How to open a wholly owned foreign enterprise in Shenzhen?

So there are different types of company in China, with the best one for foreigners being a Wholly Owned Foreign Enterprise, or WOFE (pronounced woof-e).

A WOFE means you are a foreign company on the good side, but on the bad side you will face a fair Biot more scrutiny than if you were just a Chinese one.

Step 1 – Get an office and name yourself

The first step might seem a bit backwards, but you need to rent an office. How big your company plans to be will affect how big your office is.

We had to get a big office and not just big, but bigger than before!

You can read how I rented an office here

Step 2 name yourself

Then you need to pick a name. Now this is not as easy as it sounds with many names not being allowed, but also the fact that your name needs to translate into both Chinese and English.

After this you will now get your business licenses, as well as your stamps. The stamp is a HUGE deal in China, Hong Kong and other east Asian countries.

Step 3 – Register for tax

This involves going to the tax office, ideally with Chinese help and having your picture taken. There is more to it than this, with also your phone getting checked and a bunch of SMS messages, but this is largely it.

To get your import export license is a similar process. Why do you need such a license you ask? You need this regardless of if you want to important and indeed export. This is needed just to handle, receive and send foreign currency.

Step 4 to open a company in Shenzhen

Technically you should open an RMB account before your import/export license, but regardless you will have to go back to get your foreign currency stuff done.

This all in all is not a greatly easy process at all and will often times require help rather than just walking in the back. Long gone are the days where opening a bank account merely needed a passport. Sadly personal accounts are also difficult, with this being another thing that I am currently working on.

The last step for opening a company in Shenzhen?

And the last step when you open a company in Shenzhen? Well this depends on you, but bring staff, or getting work permits should at least be part of it.

Once this is done you can focus on making money, at least in theory….

How much does it cost to open a Shenzhen Company?

This is an article I will do in more detail later, but this is something I know about and have often argued about. Essentially though it should cost within the low thousands (USD) in fees.

This is working on the theory of you using a local agent to help you. Of course this is something you could do by yourself, but I would not suggest it at all. The main point here though is do not employ an expensive foreign consultancy for a service that will be just the same as if you used someone local.

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