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The Share Capital in China

The Share Capital in China

China is the second largest economy in the world, with more than 10% annual growth and a great quality of life. Besides that, there are many investment opportunities in the country, and many overseas businessmen choose to explore the market and to start their activities. Our Chinese lawyers can provide you with different information about the available types of companies and the needed share capital.

The share capital of a joint stock company in Dubai

joint stock company in China is also known as a Foreign Invested Company Limited by Shares (FICLS) and can be listed on the Hong Kong Stock Exchange and other stock exchanges worldwide.  The FICLS needs to have at least five stockholders and two promoters with Chinese residency. The registered capital of such company needs to be around 5 million Chinese Yuan, and the profits need to be distributed equally. 

The share capital for a WFOE in China

The Wholly Foreign Owned Enterprise in China (WFOE) is fully owned by foreign shareholders, and there is no need for a minimum share capital. But if your WFOE deals with consultancy or technology, about 100,000 to 500,000 are necessary as a minimum share capital.

There are many benefits when opening a WFOE in China, therefore many investors choose this type of business. You can implement all sorts of strategies without any restrictions, you can convert the Chinese Yuan benefits into US dollars and you can have entire control of human resources.

Share capital for Partnership Enterprise in China

Partnership Enterprise in China (PE) is a preferred entity for overseas investors and refers to the general and limited partnerships. There is no need of minimum share capital and implies the same registration procedure as for a PE in the U.S. or Europe.

Doing business in China

China has always been opened to foreign investments and since 2013, the government tries to boost the brand new businesses in Shanghai Free Trade Zone. The registration process has been simplified and there is no need of minimum share capital. As a reminder, China signed many double tax agreements, in order to offer a proper business environment for all individuals who wish to set up their presence in the country.

Please feel free to contact our law firm in China for additional information or details about the needed share capital for a company.