Legal entity (company) registration in Jiangsu

12.07.2023

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Price

from 4500

Registration period in days: 14

Nowadays, more and more businessmen and investors are looking to go international with their enterprises. China is becoming one of the most attractive countries for commercial activities due to its dynamically growing economy and vast market. In particular, the Jiangsu region stands out, offering great prospects and a suitable business environment. However, it is necessary to carry out the procedure of registering a legal entity (firm). Within this piece, we will look at all stages and requirements involved in registering a firm in Jiangsu, alongside tax responsibilities and the procedure for initiating a bank account. This will help businessmen and investors to successfully realise their vision and take full advantage of the area's advantages.

Preliminary activities for the institution of the company in Jiangsu

The process of establishing a company in Jiangsu involves a number of critical actions and decisions.

Selecting the form and structure: Determining the most appropriate form and defining the structure of the organisation, including the number of directors, founders and staff.
Selecting appellation and validating its availability: Selecting a unique name for the organisation and validating its availability.
Distribution of registered capital: In order to register a legal entity in Jiangsu, it is necessary to contribute the registered capital of the company, which is contributed by the founders of the business. According to their contributions, their shares will be distributed.
Research the legal framework for company incorporation in Jiangsu: An in-depth study of the legal requirements involved in setting up a company in Jiangsu, including the required documents, process and restrictions.
Business strategy development: Formulation of company goals, competitive advantages, target audience and marketing strategies. Developing a detailed plan that includes a description of products or services, financial projections and development strategies.
Selecting an experienced and competent legal advisor who can provide the necessary expertise and guidance at every stage of company formation in Jiangsu, ensuring compliance with all requirements and procedures.

Preliminary activities play an important role in company registration in Jiangsu. Proper planning and execution of these steps will help businessmen and investors establish a solid base for effective operations.

Drafting documentation for the incorporation of a legal entity in Jiangsu

№	Title of the document	Description
1	Application for company registration	It contains key information about the company, including its name, type, address and other details.
2	Constituent document or articles of association of the company	A document setting out the rules and regulations governing the internal structure and operations of a company, including the rights and obligations of the founders.
3	Identification documents of the company founders	Passport copies or other identity documents of the founders and beneficiaries of the company, which confirm their citizenship and personal data.
4	Documents confirming the address of the company's office	May include lease agreements or ownership documents for office space.
5	Statement of directors and authorised persons of the company	Information on persons holding senior management positions in the company, including their names, passport details and professional qualifications.

Each of these documents is mandatory to successfully register a legal entity in Jiangsu and maintain its legal status and legitimacy to operate.

Bonuses on company formation in Jiangsu

100% ownership:

Foreigners are given the right to be sole owners of the company, avoiding the need to have local partners. This gives them full control over their business.

Extensive Business Opportunities and Access to China's Giant Market:

Setting up a company in Jiangsu gives foreigners access to many business opportunities in the region. Jiangsu is one of China's leading economic hubs, which provides great opportunities for business growth and entry into the country's huge market.

Ease of company registration:

Foreigners are offered a simplified company registration procedure. Jiangsu authorities are committed to creating a favourable climate to attract foreign investment, so they make the company registration procedure more accessible and easy for foreigners.

Flexibility in the choice of business form and structure:

Foreigners are given the flexibility to choose the type of company and business structure that best suits their business goals and needs. They can choose between different forms of legal entity, such as a joint venture, a wholly foreign-owned company or a branch.

All these advantages make Jiangsu an attractive region for foreigners wishing to establish a company in China and take advantage of its potential to expand their business and investment activities.

Tax obligations for foreign companies in Jiangsu

Income tax:

The standard income tax rate for foreign companies is 25% (however, tax exemptions and a reduced rate of 9-15% are available when registered in a special economic zone). This tax is levied on the profits earned by the company for the financial year.

Value Added Tax (VAT):

The generally accepted VAT rate in Jiangsu is 13%. VAT is usually imposed on certain goods and services that have been sold or rendered by a company.

Property Tax:

The property tax rate may fluctuate depending on the type of assets and their approximated value. Property tax is usually levied on the owners of a company for the ownership and use of various assets including real estate, land and so on.

It is important to emphasise that tax rates and laws may vary depending on the nature of the company's business, its location and other factors. Upon starting a company in Jiangsu, it is advisable to consult experts or tax advisors for detailed information on tax obligations for foreign companies.

What steps are required to open a bank account for a foreign company in Jiangsu?

The process of opening a bank account for a foreign company in Jiangsu includes the following steps:

Select a bank and find out the requirements: Select a bank that you consider suitable for opening an account and find out about the requirements and procedures for opening an account. The bank will provide you with a list of required documents and information about any additional conditions that may be stipulated for foreign companies.
Gather all required documents: Make sure you have all the documents required by the bank, including the company's incorporation documents, such as the company's Jiangsu registration certificate, memorandum of association or articles of association, and the passports of the founders and directors. Other documents may be required depending on the bank.
Submit the documents and complete the application: Submit all required documents as instructed by the bank. This may include completing the account opening application form, submitting copies of documents and signing the required forms.
Go through the verification process: The bank will conduct a verification process, which may include reviewing your documents, confirming your identity and verifying the legitimacy of the company. You may need to provide additional documents or answer additional questions from the bank.
Sign contracts: After successfully passing the verification process, you will be offered contracts related to the opening and use of a bank account. Read the terms and conditions carefully and sign the required documents.

Note that the requirements and procedures for opening a bank account may vary depending on the selected bank and specific circumstances. It is recommended to contact the experts to get accurate information about the requirements and process of opening a bank account for a foreign company in Jiangsu.

Approximate time it may take to set up a corporation in Jiangsu

Jiangsu corporate structure establishment process usually takes one to three months, but the specific period may vary depending on various factors and conditions. Let's take a closer look at the process:

Document Gathering: At this time, you will need to gather and prepare all the required documents to form a corporation. This may include the articles of incorporation or deed of incorporation, application for incorporation, founder identification documents, proof of office and other required documents.
Filing: Once the documents are ready, you can file the Jiangsu corporation registration application with the relevant regulatory authorities. The application must be filled out correctly and accompanied by all necessary documents.
Application Processing: Once the application is submitted, the registration authority will conduct an inspection and begin the process of reviewing your application to form a corporation. Additional documents or information may be required during this period.
Receipt of Certificate of Incorporation: If your application to form a corporation is approved, you will receive a certificate of incorporation, which confirms the legal status of your corporation. This document indicates that your company is officially registered in Jiangsu.

It should be remembered that the duration of each stage may vary. Some stages may take longer due to specific requirements and procedures set by regulatory authorities.

It is most advisable to contact experts who specialise in setting up corporations in Jiangsu to get the most accurate time estimate and assistance in organising the incorporation process.

Outcome

Opening a company in Jiangsu offers a wide range of opportunities for business development and investment. But in order to successfully complete the process, it is necessary to prepare thoroughly and fulfil all the conditions set out in Chinese law.

A key element of a successful incorporation process is the proper preparation of all necessary documents. These include the company's articles of association or memorandum of association, the application for registration, the identity cards of the founders and directors, and other documents confirming the place of incorporation and the company's office. This approach will avoid delays and errors during the registration process.

Non-resident companies in Jiangsu should be prepared to pay income tax at 25% and, if applicable, VAT at the standard rate of 13%. It is also important to consider property tax, which can vary depending on the type of property and its assessed value.

Opening a bank account is another important step in company registration process in Jiangsu. Preparing the necessary documents, familiarising yourself with the requirements of your chosen bank and completing the account opening application all require care and accuracy.

For a successful registration process and compliance with Chinese law, it is advisable to contact legal advisors specialising in company formation in Jiangsu. They will provide the necessary expertise, assist with the preparation of documents, organisation of the incorporation process and compliance with all conditions.

Ultimately, properly registering a company in Jiangsu gives it access to the advantages and opportunities of the Chinese market, which contributes to its success and development in this region.

Our experienced lawyers are ready to assist you at every stage of the registration process in this jurisdiction. For a detailed consultation, please fill in the feedback form and we will contact you at a convenient time.