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 in the Chinese market.
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Who issues Chinese business licenses?
The business licenses in China are issued by the State Administration for Industry and Commerce, through its regional offices/agencies. The company representatives applying for a business license in China must present the company’s documents, and the business plan and allow a capital verification. It is important to specify that business licenses in China are issued in Chinese only. However foreign entrepreneurs can also obtain the version in English, in notarized form, which can be used in international transactions.
Types of business licenses in China
Local and foreign entrepreneurs must inform themselves very well about the types of licenses existing in China. These are issued depending on the activities of the company in question. Here are some of the business licenses available in China:
- Import and export business licenses – the same as the trade license in China, issued for companies dealing with import and export activities.
- Construction licenses and permits – for companies dealing with construction activities in China.
- Food operation licenses – for those who produce or sell food and/or alcohol in China.
- Financial licenses – for companies that offer financial services, including branches of foreign banks.
- Pharmaceutical business licenses – for the import and sale of pharmaceutical/cosmetic products, and medical devices.
- Value Added Telecom Services (VATS) licenses – for websites in China and especially for the e-commerce sector.
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. A trade license in China is necessary for companies dealing with import and export activities. It is good to know that an export license is issued for trading activities of this kind. Assistance in getting such a license can be provided by our team of lawyers in China.
What does a business 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,
- duration of the company, as the case may be,
- the 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 license in this country. 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.
What happens if the company does not have a business license in China?
The legislation is clear regarding the conduct of business in China. Activities cannot start without first having the necessary approvals, including a business license in China. This is mandatory for both local and foreign entrepreneurs. Otherwise, the Chinese authorities can impose quite harsh financial sanctions, including the closure of the company in question if it operates on the market without a business license.
We invite you to learn more about the business license in China, the existing types, and the formalities that must be followed at the time of application. Moreover, we recommend legal assistance in this case so that the process is simple, especially for foreign entrepreneurs who come to China for the first time for business development.
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% of the companies operating in the manufacturing sector are registered as private entities 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.