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Business registration in China
  Unlike Hong Kong and other parts of the Western world, setting up a business entity in China requires careful consideration of a hosts of factors which critically affect its business success in China. Among the most important of them are the following:

·Forms of establishment

Comprehensive Study
  We need a comprehensive understanding of our client's entity to enable us to come up with our recommendation for the most appropriate course of action for them to take. At the commencement of our work, we shall undertake a detailed study of their business and operation to identify:

·Business scope of investing company
·Business scope intended for the set-up in Mainland China
·Objectives of management (at various levels) for the Mainland Chinese set-up
·Short, medium and long term plan for the set-up in China
·Detailed flow of information
·Logistics of operation

We shall conduct interviews with a representative cross section of client's staff, review necessary documents and observe how relevant work and procedures are carried out. These activities will take place at both their office in Hong Kong and any set-up that may be in China.

Formulating the Course of Action
  The comprehensive study is designed to give us all the information we need, and factors to consider, to come up with a most appropriate course of action for the client to take. When formulating our recommendation we pay particular attention to:

·Legality of the set-up
·Business needs
·Costs of operation
·Impacts on logistics of operation, and therefore business results
·Tax implications
·Administrative burden and convenience
·Scope for improving workflow
·General operation environment as regards local regulatory requirements, and approach and mentality of local bureaucrats

We shall present a set of alternatives as regards location and legal form and structure for this prospective set-up, detailing their pros and cons to facilitate management decision. An action plan will be set out to highlight the important stages of this process, give an indication on the time frame for the completion of the whole task, and the role played by the key members responsible for implementing this important change of operation.

  The implementation of our recommendation has to be a joint effort between client's staff and ours. In addition to handling all the legal and regulatory formalities for setting up the intended entity in Mainland China, we shall render any assistance necessary to enable client's staff to transition into new arrangements emerging from the creation of the new entity. Staff at client's end will need to be aware of the potential need for certain changes to their existing mode of operation and be prepared to adapt to them. We shall be closely involved in this process to ensure a most smooth and painless transition.
Comparison amongst different requirements of company set-up in China and Hong Kong
Business Registration Hong Kong China Notes on China
Company Name Few limitations Very heavy limitations e.g. "China" within the company name can only be approved by Beijing
Registered Address No limitation on number of companies at one registered address In principle One registered address, one company -
Business Scope Sky is the limit Very specific and narrowly defined in most cases There are restrictions on certain businesses
Business Life Perpetual Number of years of intended operation to be stipulated Extension allowed
Legal Representative No such requirement Required -
Registered Capital At the discretion of the company Minimum dictated by the government for different industries -
Government Departments Involved & time frame Companies Registry and Inland Revenue Department for business registration taking a few days in most cases Principally Commission of Foreign Trade and Economic Cooperation and Administration of Industry and Commerce taking 1 to 3 months in most cases Some other government authorities will also be involved depending on the industries which might take a much longer time to complete business registration
Documents for application Minimal Voluminous including application form, memorandum and articles of association, contract (for joint venture), project feasibility study, the investors' background information, etc.  
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