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Special Permits and Licenses for Chinese Companies

Special Permits and Licenses for Chinese Companies

Foreign entrepreneurs who want to open a company in China will have to observe the specific requirements for doing business in this country. 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, you will be able to expand your business on the Chinese market. 

Regulated activities in China

Like in many other countries, certain business activities require special permits and licensesCompanies 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 special permits and licenses 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 special permits and licenses in China 

Depending on your type of business, you will be required to contact the relevant Chinese authority and submit the necessary documents for the permit and/or license. Our law firm in China can help you obtain the permits in time so that you can start your business activities as soon as possible. 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 in order to avoid any misunderstandings while doing business in China. In addition to this, our lawyers can also offer you services in other matters. The law is intricate and full of minute, crucial facts that a layperson unfamiliar with the law is likely to overlook. Many of the words used in legislation and court orders have particular, legal connotations that are not common in daily speech. By hiring a lawyer, you may have someone well-versed in the legal rules that will apply to your divorce in China.

What does a Chinese license contain?

From the beginning, we mention that companies from abroad with establishments in China will obtain the necessary licenses and permits in the Chinese writing, but with the suitable help from our attorneys in China, one can understand what this kind of certificate contains. A permit issued for a business in China must provide details about the company’s name, the registration number, the address, the legal representative, the capital, the date of registration, the activities of the business and the expiry date of the license. A legitimate company in China is subject to varied licenses and permits, and each business, whether a shop, a restaurant, a trading company or a hotel will receive a copy of the business license which will be exposed in the establishments mentioned above, in order a for proper credibility in front of customers.

Chinese business license 

Similar to a certificate of incorporation in other countries, a business license is a certificate of a company’s identity issued by a local AIC (Administration of Industrial and Commerce, the corporate registration and administration authority in China). Business licenses in China provide the fundamental details about an entity. If you need comprehensive information about a specific business license in China, you can consult with our lawyers.

What does a Chinese business license contain?

From the beginning, we mention that companies from abroad with establishments in China will obtain the necessary licenses and permits in Chinese writing. With the suitable help from our attorneys in China, one can understand what this kind of certificate contains. A permit issued for a business in China must provide details about: the company’s name, the registration number, the address, the legal representative, the capital, the date of registration, the activities of the business, and the expiry date of the license.

Please find below the structure of a new Chinese business license:

  • Social Credit Code: This is the organization’s 18-digit, uniform social credit code;
  • Registration number: This is the business’s legitimate SAMR registration number;
  • Official company name: Following the Company Law, this is the name the company is registered under in Simplified Chinese;
  • Company’s structure: The sort of enterprise the company is incorporated in (JV, RO, WFOE, LLC, LTD, etc.) Our Chinese lawyers can guide you in detail about these types of enterprises;
  • Legal representative: The legal representative is the only individual authorized to sign documents on behalf of the company that is legally binding and is accountable for all corporate actions;
  • Business Scope: This is a list of the ventures that the company will be permitted to undertake in China;
  • Capital: Pay-in capital and Subscribed capital are two categories of registered capital. It must be paid within a specific amount of time;
  • Day of establishment: The date the company’s license was granted;
  • Expiry Date: the company’s expiration date;
  • Address: Every business must have a physical address listed as its registered address. When the lease term expires without being renewed, the company will be placed on the SMAR’s blacklist;
  • QR code: This QR code is connected to the National Enterprise Credit Information Publicity System for the Company.

If you have any further questions regarding a Chinese business license, our lawyers can answer your concerns. Our immigration lawyers can also provide you with legal assistance if you are interested to relocate to China.

Chinese business registration certificate

Chinese business registration certificate’s language is Chinese because it is an official document. The business registration certificate is a legal document issued by the Company Register in China and includes the following information:

  • details about the company (name, legal type etc.);
  • corporate identification number;
  • registered legal address;
  • date of incorporation;
  • company’s status (active, inactive, or struck off);
  • business venture;
  • directors;
  • shareholders and share capital (if available);
  • earliest filed annual report.

If you need more information about the Chinese business registration certificate, you can get in touch with our law firm in China. Our attorneys can guide you throughout the business registration procedure. You can also ask our lawyers how long it takes to get a business registration certificate in China. They will inform you as per your circumstances. In addition to this, if you seek legal assistance for your Chinese citizenship application, you can reach out to our lawyers for their services.

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, 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. Besides this, if you are looking for legal advice regarding how to obtain Chinese residency, our lawyers can guide you in this matter. 

FDI in China

An ownership stake in a foreign company or project is known as a foreign direct investment (FDI) and is made by a foreign investor, business, or government. You can find below the statistics of Chinese FDI:

  • The overseas investments in Chinese businesses has grown quickly over the past 20 years;
  • In 2016, Chinese FDI outflow reached its peak of over 196 billion dollars;
  • The COVID-19 epidemic caused a sharp decline in global FDI in 2020, but Chinese FDI outflows went against the trend and climbed to 153.7 billion USD

Contact our lawyers in China if you want to acquire advantages from the rapid growth of China. Besides helping you in company incorporation, they can also assist you to obtain a Chinese business license. Furthermore, our lawyers can assist you if you are interested to buy a property in China.