Foreign entrepreneurs who want to open a company in China will have to observe the specific requirements for getting a business license in China. Our Chinese lawyers can tell you all about the special permits and licenses required for Chinese companies and help you obtain them. With our assistance, entrepreneurs will be able to expand their business on the Chinese market.
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Regulated activities in China
Like in many other countries, certain business activities require special permits and licenses. Companies need to obtain permits, approvals, and reviews before they can commence their business activities. The administrative licensing process is common worldwide and China is no exception. Businesses engaged in selling products or creating new manufacturing units will have to obtain the so-called administrative licenses, while other businesses, especially those operating in special fields like pharmaceuticals, will have to follow more steps to obtain the necessary permits.
Some of the business activities that need a trade license in China include, but are not limited to, pharmaceutical companies, those selling special types of products, import and export companies, construction companies, licenses for China-based websites to operate in China, and others.
We have prepared a video about how to obtain special permits and licenses in China and we invite you to watch:
Obtaining a trade license in China considering a few facts
Depending on your type of business license in China, you will be required to contact the relevant Chinese authority and submit the necessary documents. Other licensing challenges in China are those for joint ventures. For example, companies in the automotive industry in China must operate within a joint venture in order to be able to sell their products on the Chinese market. For this purpose, foreign companies must find a suitable Chinese partner company to avoid any misunderstandings while doing business in China.
What does a trade license in China include?
The business license in China is a certificate issued especially for those who want to carry out their activities in this country. There is a lot of information that must be found on this business license in China to be used. Here are some of them:
- company name and legal form,
- business license number,
- the unique code made of 18 digits assigned to the firm and represents the unified social credit code,
- the name of the legal representative of the Chinese company,
- business scope,
- registered capital of the firm,
- data incorporation,
- period of the company, as the case may be,
- registered address of the enterprise,
- QR code directing to the National Enterprise Credit Information System in China where company information is found.
It is important to specify that only companies with a business address in China can start the process of obtaining a trade license in China. Moreover, foreign entrepreneurs who want to carry out their activities must have residency in China and present identification documents, including foreign ones at the time of applying for a business license in China.
Export licenses in China
The Ministry of Foreign Trade and Economic Cooperation issues the licenses and permits for companies with activities in the trading sector. Entrepreneurs who want to deliver goods and products outside the Chinese borders will need an export license. This kind of certificate is issued for manufacturers and trading companies whether with foreign capital or a local business. We remind that the export licenses are necessary for companies in China which want to place their goods on the markets from abroad. With clear and comprehensive terms in matters of export licensing, one can obtain this certificate as soon as he/she applied for it. There are also cases where small companies in China collaborate with larger enterprises for exporting goods, instead of applying for such certificate. For a better understanding of the conditions that come with the licenses and permits for businesses in China, we invite you to solicit legal support from our team of Chinese lawyers.
Why is a business license important in China?
One may determine with certainty whether an organization is legally incorporated in China from a business license. We can learn more about the firm from the information in the business license, including if it still exists, whether it is involved in any legal disputes or processes, or whether it is in any other unusual circumstances. You are probably dealing with fraud if the Chinese firm cannot provide you with a copy of its business license. You are probably also dealing with fraud if the details the Chinese entity gives you do not line up with what is written in the business license.
However, even if the Chinese organization provides the business license in China, it is difficult for a foreigner to undertake the investigation. So, in this situation, you can consult with our lawyers in China. They can help you investigate if the company you are dealing with is legit or not.
Statistics about companies in China
China is one of the most appreciated business destinations in the world and home to millions of companies. It is estimated that at the end of May 2024, there were over 180 million private business entities in China. Here are other interesting facts:
- According to the State Administration for Market Regulation, over 180 million private companies in China represent around 96.4% of all companies registered in China.
- Over 125 million companies are sole proprietorships in China.
- Over 96% are private companies in the manufacturing sector in China.
In addition to the services for obtaining a business license in China, our specialists can also help you in other areas. For example, we can explain the steps for immigration to China. Moreover, those already established in this country and interested in citizenship in China can opt for our legal services. As for divorce in China, we have a team dedicated to this type of legal matter. Plus, trademark registration in China can be done with the help of our experts. Please contact our law firm in China and find out more about the legal services we offer.