The cost of starting a company in China starts at $2200.

With meager production costs, advanced infrastructure, workforce, and billions of potential customers, China is an excellent destination for international business. Thousands of international investors are supported by many moves. However, many investors are still unsure of how to open a company in China and the costs! This post will take a step-by-step review of the costs and process of starting a company in China. Keep reading!

Determining the Appropriate Amount of Capital for Investment in the Business

The minimum amount of capital investment that China will need should be slightly different from the minimum amount of capital that your firm actually needs. After opening a company in China, you need approval for your registered capital amounts. In addition, this amount may affect tax liabilities to a certain extent. Your company needs to calculate your real needs after your initial investments. It is also essential that you seek professional services to advise you during the company registration process to determine your reasonable capital investment.

Non-Capital Cost of Starting a Company in China

Besides your capital investment costs, the cost of starting a company in China isn’t just operating expenses. Here are the items we recommend for establishing a company in China:

• It would help if you considered what legal structures are perfectly appropriate for your company in China.
• You must collect and submit documents to show that your company was established in full compliance with the foreign company establishment procedure and that you have the authority to operate on behalf of your company.
• Develop the master agreement.
• Apply for a business license for your company.
• Provide the relevant authorities with a bank letter that will thoroughly verify all your company’s accounts.
• Give the authorities a description of all the business activities you plan.
• Register formally with government agencies.

Identifying Initial Capital Investment in China

The amount of investment required to establish a company in China will also depend on who you choose to use to assist with the registration process of your company. You can select one of the following methods to determine the initial capital investment amount to open a company:

China Business Services Providers

You can choose any Chinese business service provider that is professional in providing business services for foreign companies. Such service providers will offer services in a manner somewhat similar to international law firms. However, the cost is much lower than these companies. These key providers can work with small companies, global firms, and startups to expand into a new field.

International Law Firms

Major international law firms can provide you with competent advice. Such firms have staff who are fluent in many languages ​​and act professionally. The most significant disadvantage of this method is that it costs a little too much to establish a company. Many small businesses cannot afford these high costs.

Do It Yourself

Because many different entrepreneurs don’t have a high level of capital, they can do most of the work themselves. Under Chinese state law, the company itself can handle the registration process of any company. This method is much more convenient than other methods. However, the disadvantage of this method is that it is too risky. Because as a business owner, you may not be familiar with the laws and regulations related to the operation of any company in China. So you can break the law without even knowing it. You may also not speak to government officials because you don’t talk about the language. Doing the registration completely yourself can cause many different unwanted problems. The government could damage your reputation.