China’s soaring economy has, for decades, been winning massive confidence from investors. In 2021, China received USD 334 billion in FDI, a huge surge of 32% compared to 2020. The country also boasts of the largest economy based on purchasing power parity (PPP) since 2014. These are only a few attributes; almost everything ticks right for investors, making it the perfect for China company incorporation.
If you are looking forward to registering a company in China fast, perhaps because a deal has gone through faster than anticipated or target to rapidly expand into the Far East market, this post has the perfect answer. Keep reading to learn more about the performance of the Chinese economy, the types of companies you can form, and how to start a business fast.
Important Numbers about China Economy
- In 2021, the Chinese economy expanded by 8.1%, which matched the market expectations.
- The full-year GDP of the Chinese economy was USD 17.7 trillion, which marked an upshot of USD3.0 trillion by 2020.
- China is the most populous state on the planet, with 1.411 billion people (2020 estimates).
- Services contribute the largest chunk, 51.6%, of the Chinese GDP. This is followed closely by industry (40.5%) and agriculture (7.9%).
- China is the largest manufacturing hub and exporter. It is also the largest consumer of different products and takes about 50% of the global consumption of metals.
- Trade performance in 2021 in the country performed awesomely, hitting a record high of USD676 billion. This was a significant growth of 26%.
Types of Companies that You can Incorporate in China
When you make up your mind about China company incorporation, it is paramount to select the preferred type of business. Indeed, China has a number of them, including WFOE, JVs, and ROs. Here is a closer look:
- Wholly Foreign Owned Enterprise (WFOE): As the name suggests, this type of company allows foreigners to have 100% shareholding. This means that you will have total autonomy over the running of the company, including the decisions on who to hire and product design.
- Joint Venture (JV): A joint venture is the direct opposite of the WFOE. You are required to enter into a partnership with a local Chinese to be allowed to form a joint venture. Your control over the company will be reduced significantly because the Chinese partner is required to hold controlling shareholding.
- Representative Office (RO): This is the simplest type of company to form in China because it is considered an extension of another parent company back home. However, it comes with a myriad of restrictions, including being disallowed to carry out profit-based deals. Therefore, this company is recommended only for non-profit types of activities, such as market research.
Primasia Agency: The Best Method for Fast China Company Incorporation
Now that you know the different types of companies that you can form in China, it is time to move to the next step of incorporation. We must say that the process can be pretty complex because of the long list of required documents. Also, you have to deal with different offices, from the Ministry of Finance (MOF) to the Local Administration of Industry and Commerce (AIC), during China company incorporation.
Navigating through the ever-changing company laws in the country is also pretty challenging. The best way to get everything right and complete the process of company registration is by working with Primasia, the best agency for business formation in China.
Primasia has all the experience needed for China company incorporation. The agency’s experts will process all the documents professionally and navigate through the different departments to ensure the process is completed fast. They also help to cut down the cost of company registration with a huge margin.
China is a land full of opportunities, and you should work with an agency of experts to make your dream come true.
With Primasia, China company incorporation becomes fun. Indeed, Primasia will also be there after incorporation to help with entry strategy formulation, payroll management, accounting, and tax matters.