Company registration in Hefei

Inception of enterprise in Hefei serves as the linchpin to prosperous commercial endeavors in China. Hefei, the nucleus of Anhui Province, is a favored locale for myriad enterprises seeking to initiate operations within the China. The municipality harbors a plethora of academies and scholarly institutions, in tandem with an escalating array of manufacturing and industrial entities. Hefei likewise boasts access to a copious assemblage of prospective clientele, given its position in the heartland of China. When establishing a business in Hefei, adherence to proper corporate enrollment protocols and procurement of an operating permit is imperative.. Upon fulfillment of these formalities, the enterprise may commence functioning within Hefei.

Merits of Constituting an Enterprise in Hefei

Company registration in Hefei provides significant benefits based on specific numbers and data:

1. Economic growth. Hefei has demonstrated steady economic growth. In the first quarter of 2024, the city's gross domestic product (GDP) increased by 8.5%, making it one of China's fastest growing cities. This growth creates a favorable business environment and increases opportunities for new businesses.
2. Attracting foreign investment. Hefei is an attractive city for foreign investors. Currently, the city is home to more than 3,000 companies from 58 countries, including 34 Fortune 500 companies such as Mitsubishi, Wal-Mart and Unilever. This demonstrates the high level of confidence of international corporations in Hefei's economy and creates favorable conditions for new investors.
3. Tax benefits. Companies registered in Hefei can count on significant tax benefits. For example, companies operating in the National High-Tech Industry Development Zone can receive corporate tax breaks, which can significantly reduce the cost of doing business and increase the company's profitability.
4. Developed infrastructure. Hefei has a developed transportation infrastructure, making it an important transportation hub. The city is served by the new Hefei Xingqiao International Airport, which provides flights to major cities in China and beyond. Hefei is also connected by several national railway lines, making logistics and goods transportation easier.
5. Supporting innovation. Hefei actively invests in the development of high technology and innovation. In 2023, the city invested more than 50 billion yuan in the development of high technology and innovative projects. This makes Hefei a hub for technology startups and large innovative companies, creating a favorable environment for the growth and development of new enterprises.
6. Government subsidies. Hefei authorities provide significant financial support to promote start-ups and development-stage companies, with a particular emphasis on high-tech industries. These financial incentives can offset up to 50% of R&D costs, significantly reducing the financial burden and encouraging the adoption of new ideas and technologies.

Starting a Business in Hefei provides entrepreneurs with unique opportunities for growth and development in one of the most dynamic and promising regions of China.

Hefei Business Regulator

The Hefei Bureau of Mercantile and Commercial Affairs serves as the principal overseer of commerce within the metropolis. This entity bears the onus of cataloging enterprises, administering mercantile charters, executing trade statutes, and safeguarding the prerogatives of purchasers. The primary undertakings of the bureau encompass:

• processing entreaties for the inscription of nascent corporations, encompassing the dispensation of commercial permissions and the amendment of enrollment particulars;
• dispensation and prolongation of sundry enterprise licenses, encompassing those for trade, fabrication, and services;
• securing adherence to statutes governing consumer safeguarding, monopolistic practices, and other edicts overseeing mercantile undertakings;
• undertaking scrutiny and surveillance of establishments to ascertain conformity with all pertinent laws and ordinances.

Business Regulation in Hefei based on a number of national and local legislation:

1. Company Law of the People's Republic of China. This is the basic law governing the formation, structure, management and dissolution of companies in China.
2. Law of the People's Republic of China on combating unfair competition. Regulates commercial activities aimed at preventing unfair competition, such as false advertising, counterfeit goods and damage to goodwill.
3. Consumer Rights Protection Law of the People's Republic of China. Protects consumer rights and regulates relationships between consumers and businesses, including issues of quality of goods and services, product safety and justice in cases of violations.

Local AIC Company Registration Website in Hefei

In addition to being able to search the website nationwide to check company registration, each province has its own local AIC company registration in China, which is administered by the AIC - Administration of Industry and Commerce.

As the name suggests, it is a regional government association that handles the registration of companies in its specific area. An AIC is dedicated to each province in China, and there are many other small branches around the area.

Thus, if thou art seeking provincial incorporation, thou must peruse by shire and prefecture. These municipal powers possess a formidable ledger of company incorporations.

Image caption: website to check company registration.

Organizational structures of enterprises in Hefei

The paramount frameworks of the enterprise accessible to overseas financiers for instituting a foothold in Hefei are a wholly foreign-owned entity, a cooperative enterprise, and a liaison bureau. Presented below is an exhaustive delineation of each arrangement.

WFOE Registration in Hefei. A Wholly Foreign-Owned Entity, abbreviated as WFOE, represents the predominant and widely acknowledged investment pathway for extraterrestrial capitalists. A WFOE signifies a limited liability company (LLC) exclusively underwritten by an extrinsic financier, thus the appellation “wholly alien proprietorship.” This construct permits outlandish investors to procure the utmost degree of independence and governance over their commercial venture.

Below are some important Features of WFOE:

1. Distinct juridical personage. A WFOE constitutes a distinct juridical personage. As a corporation of circumscribed accountability, the overseas proprietor's obligation is confined to the quantum of subscribed capital furnished by its equity holders.
2. Contribution of authorized capital. WFOE shareholders must contribute registered capital to the company, however the law does not provide a minimum and registered capital can be contributed over a 30-year period.

Owing to its framework, which bestows upon extraneous financiers dominion over the corporation's undertakings and an unabridged entitlement to the revenues of the Chinese establishment, a Wholly Foreign-Owned Enterprise (WFOE) emerges as the preeminent alternative for overseas capitalists to inaugurate a foothold in Hefei.

Incorporation of a consortium enterprise in Hefei. Similar to a wholly foreign-owned entity (WFOE), a consortium enterprise (JV) is likewise an inscribed establishment, albeit forged through a collaboration betwixt an external financier and a native Chinese corporation or personage (henceforth termed a “Sino-exogenous consortium enterprise”).

Important features of the joint venture in Hefei:

1. Dominion. Orchestrating a conjoint enterprise proves more intricate owing to the participation of sundry proprietors with divergent inclinations. The proprietors' covenant assumes a pivotal function in delineating the entitlements and duties of the factions involved. This foundational treatise necessitates supplementary preparation during the formation phase, in contrast to the establishment of the wholly foreign-owned enterprise (WFOE).
2. Responsibility of investors. Like a WFOE, in a joint venture, investors are limited in their liability to the amount of registered capital they contributed.

The joint venture structure is frequently employed to gain access to commercial domains in Hefei that are (directly or indirectly) constrained or barred by Chinese statutes, or to capitalize on the Chinese partner's indigenous expertise and network. Nevertheless, co-partnerships tend to be more arduous to administer owing to the potentially disparate interests of stakeholders and the manners in which stakeholders might wield authority over the operations of the enterprise. Consequently, foreign financiers should meticulously deliberate the inception of a co-partnership and distinctly delineate the entitlements and obligations of the parties to the alliance and the architectural specifics of the corporation at the juncture of its genesis.

Registered Representative Office (RO) in Hefei. Although the aforementioned corporate configurations are distinct juridical entities, it is crucial to acknowledge that the legation is regarded as an adjunct to the firm's principal office and is consequently often categorized as a variety of "intermediary bureau".

The representation is characterized by the following important features:

1. Capabilities and constraints. The liaison outpost is solely authorized to undertake promotional and investigational undertakings for its main establishment and liaise with professional correspondents on behalf of the progenitor entity. This implies that the liaison outpost is precluded from partaking in mercantile enterprises such as invoicing patrons, formalizing agreements, or amassing proceeds.
2. Capital and accountability. The external financier is not obligated to furnish endowment to the satellite establishment. Concurrently, the principal headquarters shoulders absolute liability for the undertakings and encumbrances of the auxiliary office.

Due to its limitations, the representation structure is not always considered the most optimal way entering the Chinese market.

Process of registration of a company in Hefei by a non-resident

Business Registration Process in Hefei includes several key stages, each of which requires the completion of certain actions and the preparation of the required papers.

The first stage is the selection of the legal form (OLF) of the company. This choice determines what documents and permits will be needed in the next stages.

Second stage - filing an application for company name approval to the industrial and commercial bureau. To do this, you need to go to the online portal where you can apply for a company name, watch a video guide on name approval and creating a business, and also download a business name pre-approval form.

At the third stage it is important register a company.

The next stage is renting the premises. To do this, you need to obtain a certificate of ownership of real estate or a similar document confirming the right to use the premises. After renting, you should sign the lease agreement and ask the owner for a copy of the title deed.

At the last stage, it is necessary to prepare the company's charter, which must be signed by all shareholders. The charter serves as the main document defining the internal rules and structure companies.

After registration it is important get business licenses in Hefei. To do this, you need to visit an industrial and commercial office and prepare the required documents. You must also register with your local tax office within 30 days so that the tax office can determine the types and rates of taxes for your company. You also need to file a tax return the next month after the company is formed, even if the business is not yet generating income.

A complete list of documentation for opening a company in Hefei

Company registration in Hefei includes the collection and preparation of a number of significant documents that confirm the legality and legality of the new business. At each stage of registration, a specific set of papers is required that must be submitted to the competent authorities. These documents are crucial for your company to be officially recognized and operate in accordance with the law. The following is a list of documents required for successful business registration in Hefei and their importance in this process:

1. Application for registration of the establishment of an enterprise, signed by the legal representative of the enterprise. These are the main papers that are submitted to the Industrial and Commercial Bureau to begin the company registration process. It contains basic information about the company, including its name, legal address, form of ownership and information about the legal representative. The application must be signed by a legal representative of the company, who is responsible for the accuracy of the data provided.
2. Compact endorsed by the entirety of stockholders. The company's compact is a pivotal foundational manuscript delineating the internal precepts and governance framework of the enterprise. It encapsulates details concerning the entity's aspirations, the entitlements and obligations of proprietors, alongside the canons of corporate superintendence.
3. Documents on the appointment of directors, managers, managers and copies of their identity cards. These documents include decisions or minutes on the appointment of key management persons of the company, such as directors, officers and managers. Along with them, copies of the identity cards of these persons are submitted, which confirms their personal data and authority within the company.
4. Agent ID and its copy. An agent's certificate confirms his status and authority as a representative of the company. This document must be provided in original and copy to confirm that the agent is authorized to act on behalf of the company.
5. Proof of residential use. You are required to go through the legal confirmation procedure. addresses by providing proof of use of the residential premises.
6. Documents of founders and directors.

How to establish a fiscal consortium vault in Hefei?

Initiating a mercantile account in Hefei constitutes a pivotal juncture subsequent to enterprise incorporation. To inaugurate a fiduciary institution's account in Hefei, one must undertake the ensuing actions and furnish specific parchments. Below are the overarching stipulations alongside the enumeration of requisite documents:

The procedure of inaugurating a corporate ledger in Hefei may be segmented into various phases:

1. Opting for a pecuniary establishment. Ascertain the establishment where you wish to inaugurate your commercial account. Noteworthy institutions in Hefei encompass the Bank of China, ICBC, and China Construction Bank.
2. Amassment of requisite credentials. Compile all indispensable credentials (enumerated beneath).
3. Tendering a petition. Dispatch a petition to inaugurate an account to the financial institution of your predilection. This may be executed either in person or electronically, contingent upon whether the institution proffers such a facility.
4. Undergoing the authentication process. The institution will scrutinize all the credentials and particulars concerning your enterprise that you furnish.
5. Finalization of a covenant. Upon triumphant authentication, you shall be requested to ratify a compact with the financial institution, subsequent to which you will be furnished with particulars for a nascent account.

• Incorporation instruments of the company (charter, company registration certificate, business license);
• passport/other identification credential of the director and other empowered individuals;
• proceedings of the meeting of proprietors or directors, which attests to the decision to establish an account and the designation of authorized individuals;
• Fiscal Identification Number or tax declaration;
• If the company previously held accounts at other financial institutions, certifications from antecedent banks may be necessitated.

• The enterprise must be enrolled and function in accordance with Chinese jurisprudence;
• certain financial institutions might stipulate a minimum remittance to inaugurate an account;
• The financial institution may perform periodic inspections and solicit supplementary documentation whilst utilizing the account.

Contingent upon the particular financial institution and the nature of the enterprise, there might be supplementary stipulations or attributes. It is advisable that you consult your selected bank directly for precise details and counsel.

Free Trade Zones in Hefei

Hefei has several zones that support business development and attract investment. Here is a detailed description of the key zones, their funding and features:

Priority business sectors in Hefei

In Hefei, priority business sectors are supported by the government and investors as part of the region's strategic development plan. Here are a few key industries that are considered priority:

1. High technology and innovation. Hefei is actively developing its high-tech sector, including information technology, artificial intelligence, and new materials. The city has research institutes and technology parks that contribute to the creation and implementation of advanced technologies. The high-tech sector receives significant support through R&D funding and tax incentives.
2. Biotechnology and healthcare. Biotechnology and medical research are important priorities for Hefei. The city is actively developing research centers and medical institutions focused on the development of new drugs, medical technologies and innovative treatments. Local authorities and investors provide financial support for biomedical and health research.
3. New materials. Manufacturing and development of new materials such as nanomaterials and advanced polymers are key areas in Hefei. These materials are used in a variety of industries, including electronics, energy and construction. The city is actively investing in research and development of new materials to improve the competitiveness of local industry.
4. Energy and environmental technologies. Hefei focuses on the development of environmentally friendly technologies and alternative energy. The sector includes solar and wind energy projects, as well as technologies for waste management and environmental protection. Local support programs aim to promote sustainable development and reduce the carbon footprint.
5. Manufacturing sector and automation. The manufacturing sector in Hefei covers a wide range of industries, including machinery, electronics and textiles. Automation and modernization of production processes play an important role in increasing the efficiency and competitiveness of enterprises. The city supports programs to introduce new technologies and increase the level of automation in production.
6. Information technologies and communications. The information technology and communications sector in Hefei is also receiving significant attention. Software development, digital technologies and communication solutions are important areas for the city. Support includes investments in infrastructure development and support for IT startups.
7. Trade and logistics. The trade and logistics sector plays a key role in Hefei's economy. The city is actively developing its logistics infrastructure and international trade relations. This includes the development of transport hubs, warehouse facilities and digital platforms for supply chain management.

These industries have received priority attention as part of Hefei's development strategy, reflecting the city's commitment to innovation, sustainable growth and international cooperation. Support from local authorities and investors contributes to the dynamic development of these sectors and the creation of favorable conditions for business.

Licenses in Hefei

Securing permits in Hefei constitutes a pivotal component of the process for lawfully engaging in commercial activities within the city. Permitting encompasses a broad spectrum of undertakings, such as healthcare services, legal professions, manufacturing and distribution of spirits and consumables, alongside numerous other domains. Each permit necessitates particular stipulations and protocols. Below is a compendium of the principal categories of permits requisite for conducting business in Hefei:

1. Medical License. A medical license is requisite to inaugurate and administer medical establishments such as hospitals, clinics, and apothecaries. It is likewise mandated by pharmaceutical enterprises and medical apparatus manufacturers. The license, conferred subsequent to a thorough scrutiny by the Hefei Health Administration, attests that the medical institution conforms to the rigorous stipulations instituted for procuring authorization to undertake medical endeavors.
2. Legal License. A legal license is indispensable to dispense juridical services, such as advocacy, consultancy, and legal assistance. Licenses are bestowed by municipal entities such as the Hefei Bureau of Justice. This license certifies that the law firm or individual is sanctioned to render legal services and adheres to statutory requirements.
3. License for spirits fabrication. A license for the fabrication and commerce of intoxicating liquors is imperative for enterprises involved in the manufacture, dissemination, and trading of spirits. In Hefei, this license is conferred by the local vinous control authorities, typically under the Market and Product Quality Oversight Directorate. The license ensures adherence to all norms and standards instituted for the fabrication and commerce of intoxicating products.
4. Permit for alimentary fabrication. Entities engaged in the production, encapsulation, and vending of comestibles require an alimentary processing permit. This permit is bestowed by the Bureau of Market and Product Quality Oversight and regional divisions of the sanitary and epidemiological authority. The permit certifies compliance with alimentary safety and quality norms.
5. Exportation and importation permit. For enterprises involved in extrinsic economic pursuits, a permit for exportation and importation is requisite. The permit is bestowed by the Hefei Foreign Economic Relations and Trade Directorate and substantiates that the enterprise possesses the entitlement to conduct extrinsic economic dealings and conforms to the stipulations of Chinese jurisprudence.
6. Building Permit. A building permit is requisite for enterprises engaged in the edifice and refurbishment of structures and infrastructural amenities. This permit is conferred by the Hefei Building and Urban Planning Bureau. The permit attests that the construction entity adheres to architectural codes and stipulations, and also possesses proficient personnel to execute construction tasks.
7. Authorization for Pedagogical Services. An authorization to render pedagogical services is requisite for educational establishments such as academies, universities, and instructional centers. The authorization is conferred by the Hefei Department of Education and validates the educational establishment’s adherence to national criteria and mandates.
8. Monetary services license. Entities delivering monetary services, such as banking, insurance, or investment offerings, necessitate a license conferred by local fiscal overseers. The license attests that the entity satisfies the criteria and stipulations set forth for fiscal institutions.
9. License for conveyance services. A license for conveyance services is indispensable for entities involved in freight conveyance and passenger transit. The license is bestowed by the Hefei Transport Bureau and validates that the entity adheres to the regulations and safety norms of conveyance services.

Each of these categories of licenses necessitates adherence to particular stipulations and norms set forth by Chinese legislation. For more exhaustive particulars regarding the licensure procedures and prerequisites, it is advisable to consult the pertinent municipal authorities or advisory firms in Hefei.

Taxation in Hefei

Taxation in Hefei is governed by local and national laws. Hefei has a number of taxes that affect businesses.

Corporate income tax to Hefei equal to 25% of taxable profit. But some small and medium-sized enterprises (SMEs) may benefit from reduced rates. Hefei also has local tax incentives for certain industries and activities, which can reduce the tax burden.

• 13% - for the sale of goods and provision of services related to vital goods;
• 9% - for the sale of goods such as electricity, gas, water and some consumer goods;
• 6% - for the provision of services such as consulting and legal services.

Property tax to Hefeth is charged based on the value of the property. In Hefei, rates and regulations may differ from other regions and you should contact your local tax office for accurate calculations.

For individuals, Hefei possesses a forward-thinking fiscal schema with varying levies contingent upon income strata. Deductions are enacted at the origin of disbursement. Employers are mandated to enumerate and remit levies on the personal earnings of their workforce.

Land tenure excise is levied for the utilization and leasing of parcelled land. The excise quantum is contingent upon the category of land utilization (e.g., commercial, residential) and may fluctuate based on the expanse and intent of the tract.

Capital gains impost exacted on surpluses accrued from the disposition of assets such as real estate and securities. Levy rates are contingent upon the category of assets and their duration of retention.

Hefei also has taxes and fees for pollution and use of natural resources. These taxes are aimed at encouraging environmentally friendly technologies and production methods.

Conclusion

Company registration in Hefei represents a pivotal phase towards prosperous commerce in this rapidly evolving metropolis. Comprehending the procedures, stipulations, and accessible assistance schemes, along with meticulously finalizing all requisite documentation, will guarantee a seamless inception of your enterprise. Hefei proffers abundant commercial prospects owing to its sophisticated infrastructure and patronage from municipal authorities.

If you are contemplating inaugurating or cultivating a venture in Hefei, our experts are poised to extend proficient aid at each juncture of registration. We proffer extensive advisory and support services that will assist you in deftly navigating all bureaucratic formalities and efficaciously actualizing your entrepreneurial concepts. Reach out to us and we shall aid you in embarking on the inaugural stride toward a prosperous enterprise in Hefei.