Post-Registration Procedures for a New Company in China
Once registration and the business license are obtained, there are several key tasks to ensure the company operates according to local regulations and starts its operations effectively.
Post-Registration Procedures
One of the first steps is to create and register company seals which are essential legal tools for signing official documents, contracts, and managing transactions. Tax registration is another crucial task: every company must register with the local tax authority to meet tax obligations, such as paying VAT and corporate income tax. If the business requires special licenses for certain sectors, these must be obtained immediately after registration.
For businesses involved in importing or exporting goods, obtaining the necessary import-export licenses is also required to comply with Chinese customs regulations.
Opening Bank Accounts and Capital Contribution
A key step in starting business operations is opening bank accounts, both for daily transactions and capital. The basic bank account is used for managing everyday business activities, such as paying suppliers and salaries. The capital account is where the required startup capital is deposited. Only after depositing the capital can the company fully commence its operations.
Tax Registration
Upon incorporation, the company must register with the local tax office to meet its tax obligations. This includes paying VAT and corporate income tax. Even companies with no profits are required to submit regular tax reports to stay compliant.
Obtaining an Import-Export License
If the business involves importing or exporting goods, an import-export license must be obtained. This license is mandatory for businesses engaged in cross-border trade.
Foreign Exchange Registration
Foreign-invested companies must register with the State Administration of Foreign Exchange (SAFE) to handle foreign currency transactions and international fund transfers. This step is essential for managing foreign investments and currency operations.
Setting Up Accounting Systems
Implementing an accounting system that meets Chinese regulations is essential for managing finances efficiently. It also prepares the company for mandatory periodic financial audits.
Social Security Registration
Companies with employees must register with the Social Insurance Bureau to contribute to employee social insurances, including pensions, health insurance, and unemployment insurance.
Regular Tax Filings
Businesses need to submit tax filings monthly or quarterly, including VAT and corporate income tax. Even if the company does not have earnings, tax filings must be completed to report expenses and comply with tax laws.