The second largest city in Guangdong province is Shenzhen. It is one of China’s most vibrant city, a regional manufacturing, and financial hub, especially in consumer electronics. Even without a familiar outlook like other famous China cities like Hong Kong, Shanghai, and Beijing, Shenzhen has remained the destination city for all people around the world who seeks to startup electronics or manufacturing businesses.  One of the huge advantages foreign companies enjoy in Shenzhen is her sound infrastructural base and talented pool of human resources. The process of China company formation as a legal entity to start doing business in China is what is known as China registry or China registry.  Shenzhen company registration is not that simple, but can be easier and faster when a professional agent is involved. Sequel to incorporating a business and investing in Shenzhen, there are certain business types or options in China company registry which an investor needs to know. The business options can be a Wholly Foreign Owned Enterprise (wfoe China), Representative Office, Foreign Invested Partnership Enterprises (FIPE), Joint Venture, or Hong Kong Holding Company. A professional agent will help you understand all these better.

For setting up a wfoe in china, it is a limited liability company owned by a foreign investor. This type of China company formation requires a registered capital and its liability of equity, can generate income, must pay tax in China, and is allowed to return her profit to the investor’s home country.  Any investor in Shenzhen China, who intends to incorporate a business in the area of consulting, trading, retailing, information technology, etc., will not have to worry about minimum registered capital. In contrast, however, businesses within the scope of banking or forwarding will have to meet with standardized registered minimum capital.

Another business type, Representative Office, is purely a liaison office that has a parent company for China company formation. This type of China company formation does not require a registered capital in Shenzhen because of the business deals on product or service promotion, market research analysis for her parent company, or quality control liaison services. Representative offices are not allowed to generate revenue of any sought nor generate contracts with other local businesses in China.

Again, when a business is incorporated between a Chinese investor and foreign investor, it is known as a Joint Venture (JV). It is a limited liability company, where the parties involved incorporate a business by contributing equity, share their revenues, expenses, and also have control of the business.

Company formation in Shenzhen is quite a huge task and as such requires financial and time commitments, knowledge of business management principles and environment, and Chinese expertise. It, therefore, becomes important business owners identify a competent agent who will help them manage all processes required to avoid potential pitfalls many experience while setting up a business. This is why your business needs a professional agent like us—China SourceLink. We as your China sourcing agent will efficiently help your business with any legal and fiscal matters and also comply with all business regulations and rules in China. The China company formation will also enable your business to enjoy success, growth, and avoid common mistakes of company registration. In most cases, it can be frustrating when you’re not familiar with Chinese legislation and the requirements of different authorities while incorporating any business. Engaging the services of a professional, experienced agent like us will certainly help your business meet up with and ensure private receipt of legal procedures and other legal documents required in Shenzhen. Furthermore, because of the various financial obligations, tax clarifications and calculations, asset management and financial policy regulations alongside Chinese company law rule, an investor who does not engage the services of a professional agent may be found wanting in Shenzhen business community and may be faced with unnecessary litigations. China SourceLink is your best choice of business agent to help your business effectively and efficiently manage some of these challenges and even provide you with professional ways of dealing with communication and language barriers while incorporating your business. Communication issues that new businesses face in the areas of product sourcing, supplier verification, quality control, loading supervision, warehousing, shipping support, business risk control, after-sale support services, etc., are adequately handled by a professional agent.

Shenzhen is that business hub you’ll want your business to thrive in. This is why the services your business will get from China SourceLink are world-class as we are here to give you the best while doing business in China.