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Q: What type of visa for a foreigner starting his own company in China?
Business visa? Seems logical but then again this is China.
9 years 21 weeks ago in Business & Jobs - China
I thought you already owned your own company in China.
Eorthisio:
But I am on the wrong visa, they don't seem to care though.
ScotsAlan:
I would investigate getting a HK ID and basing yourself there. You said last week that you spend half your time there and half in GZ.
My boss does that. Based in HK and uses an M visa to travel to China for meetings etc. But most of the time he is in HK and uses skype etc to communicate. Modern communications are great, but they are even better when people are in the same time zone.
The tax is a lot lower in HK apparently. And with a HK temp id, getting a visas for China is not an issue.
Kaiwen:
To Eorthisio: Presumably, if you have a fully registered company in China, you have also submitted registered capital. If you are on the wrong visa (you should have a work visa and RP), you can technically be deported at any time. You will go but the business capital will stay. You will never see that again. If your name is on the business licence as the company legal representative and you have followed the process that you agreed with the government when you registered the business, you are entitled to a work permit and RP.
You cannot start the process with an existing 'Z' visa and RP.
If for example, you are employed as a teacher, you would have to start the business registration process, cancel the existing RP, get a 'L' visa then apply for a new FEC or work permit using the business licence and company stamp. It would require getting a fresh 'Z' visa invitation letter under the name of your registered company then leaving the mainland. After returning, you then have to undergo the process of applying for a new RP using the company documentation.
If you are not currently living in China or do not currently hold a 'Z' visa/RP, then the process is the same but obviously omitting the cancelation of the current RP.
Your question is like that "old one" that asks "who came first, the chicken or the egg?"
You must realize that in China, things are done the way Chinese say they are to be done, and not as you would like it to be. In your case, as explained to you above by another poster, in order to open your own business in China you must be already in China, and also have, besides a ton of money, a work visa and a residence permit issued by your local PSB.
Let's assume you have that for a second. To open your own business, you will have first to register a "whole own foreign corporation". To do this, must file tons of forms, adquire all required permits to operate the particualr business you nwill start, have enough capital in a Chinese bank (minimum 100,000 yuan) to function properly and survive start up conditions as per Chinese mentality. Then, after one year operation, you must apply for another permit, this time to hire foreigners (you or someone else). One of the requirements is to open a bank account with at least 50,000 yuan in it to insure funds for foreign employee salaries, even if is you. When allf the above are accomplished, then you have your coimpany issue a loetter oif invitation, go back to your home country, and apply then for a work visa to work in your company.
Please realize this is a quick answer, and because of space and time, not a step by step all details included procedure has been written. This is only an overall view to give you a quick idea of the complexity or the question you have asked us.
On which visa do you enter China to start the ball rolling?. I hate to answer it because I am sure Chinese officials may think different. My suggestion is if you are abroad, visit a Chinese Embassy and ask your question there. If you are already in China, visit your local PSB and ask them your questions. That will be the safer way to proceed in my mind
The process to avoid confusion:
Firstly, apply for registration with the local government department responsible for dealing with foreign investment (or get agent to do this for you). Within one month, you should receive a number of documents that will include the business licence and the official company stamps. You cannot do any more until you have these at hand.
Secondly, go to the local SAFEA office to apply for a new FEC or to the local Labor Supervision Bureau to apply for an Alien Employment Licence. To do this, you will need your company documentation and official stamp. Neither SAFEA nor the LSB will begin the process if you are holding a current residence permit. You will have to cancel the RP then apply for the AEL on a 'L' visa. You may also be required to undergo a fresh medical examination and CRB check.
Thirdly, you take the AEL to another government bureau that will issue you with a 'Z' visa invitation letter. You must take the AEL and invitation letter to the foreign embassy/consulate stated on the paperwork.
Fourth, leave the mainland to the appropriate embassy/consulate to get a new 'Z' visa in your passport. You are then back to the 30 day rule for getting a RP.
Fifth, go back to the SAFEA/LSB to obtain the new FEC/Work Permit. This will be necessary when you apply for the RP.
Sixth, take the new FEC/WP to the local PSB along with wads of other documents to apply for the new residence permit. The new RP will be authorized specifically on your business licence and attached to your company name. You cannot legally use it for employment outside the business scope as shown on the business licence.
ScotsAlan:
Yup.
I have a British friend doing this at the moment. He has just come back from a trip to the UK to get his Z, and he is due to get his RP this week.
However, he is setting up a Chinese subsidiary of an existing UK company so he has financial backing. He had to deposit a substantial amount of money with the local Government to as a guarantee to cover the wages of the local staff should the company fail.
I hope to sit down with him soon to write down all the steps he had to take.
It has taken him almost a year to get to this stage.
Kaiwen:
All people have to deposit a sum of money. It is the corporation registered capital and is an amount agreed with the government that will cover business running costs until such a time that the company can run self sufficiently. The capital does not usually have to be paid in full. It is normal for the government to state 20% within three months and the remainder within an agreed timescale (1 to 2 years typically). The capital for Wholly Owned Foreign Enterprises must be transferred from an overseas bank from an account with precisely the same name that appears on the company legal representative's passport into an account agreed with the Chinese government. None of that money can be withdrawn unless it has been reported by a qualified accountant and inspected by the government. It is then freely available for use by the company.
ScotsAlan:
When my friend done the money transfer the UK accountant messed up with the transfer fee. So the substantial deposit arrived in the Chinese bank 25 RMB short. It took him a week to sort that one out. No way would they take cash, the exact amount had to be transferred in one lump sum.
really u want to open a biz in china i will give u some advice take half the money and flusch it down a toilet and keep the other half i hust saved u half the amount of money u wanted to invest
expatlife26:
Maybe you can't make much money in china but it's wishful thinking for you to think that nobody can.
who do you think those african dudes with the big gold chains are you see in clubs? They do trade...and business looks to be good for some of them!
Who do you think ANYBODY who isn't a western professional is with money in terms of expats? BUSINESS OWNERS.
Tons of money to be made in China...just gotta be smart like people say.
usually at the very beginning with M visa, later when the company registration is done, then he will apply for work visa, and resident permit to stay in China.
L family visit visa. It would help if you have a Chinese wife for legal and ownership issues. A lot of difficulties are prevented by putting the company in her name. But don't trust some random girlfriend for this.
Hotwater:
The OP is forming a WFOE (Wholly FOREIGN Owned Enterprise) so why does he need any Chinese person involved? Not a very informed answer....
coineineagh:
If you are a lone foreign owner, you're a target for scams and authorities to impose demands. Provided you have a partner you can trust implicitly, it would be better to have the business registered in their name. For all intents and purposes it would be your business; you make and keep the profits. Involving your Chinese partner will also help you rely on them to handle 'cultural difficulties' so you don't have to. I already own a small school this way, and perhaps a bakery in the future. It may be on a smaller scale than you're thinking of, but OP didn't specify what the business was.
Hotwater:
Fair response & point of view. My British boss is going through this process at the moment & is using a highly recommended law/accounting firm to deal with the paperwork. I'm hoping it goes through okay as he can then employ me legally ;-)
coineineagh:
Different scale of business, I'm guessing. In a large city, it may be a whole different ballgame, and ownership under a local name may not be as advantageous. Just keep in mind that foreigners can only legally own 1 piece of realestate property OR business in the mainland. I've met people who prefer to create a HK office from which to base their business in the mainland, and ownership becomes a lot easier. Anyway, it helps if you go to the tax office before they come to you. In case of an oversight, you have proof you were pro-active in seeking to legally pay your taxes. Anyone comes to impose sanctions or make demands due to an alleged error, and you have a fairly annoyed tax office on your side.
Incongnito:
Agreed with all what you mentioned. Having a Chinese face on your side will make things much easier and help to protect your business too. Going solo in business is hara-kiri. The HK company is the best option with Rep Off in the mainland, in my opinion.
You start with a business visa and after the company is fully opened you will get the paperwork to apply for a works visa
You start with a business visa and after the company is fully opened you will get the paperwork to apply for a works visa
