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Sign up with Google Sign up with FacebookQ: Criteria to open a software company here in terms Capital requirements and FDI percentage?
11 years 16 weeks ago in Business & Jobs - China
You will need to create a registered company here in China with a Chinese national as the frontman and with Chinese management. You will need to have a registered direct capital in the company of RMB 10,000,000 under the current Chinese Company's Act.
The company will not be allowed to engage foreign personnel until at least a two-year minimum period of profitability has passed and has been demonstrated to the local tax office. The minimum number of employees for a registered company like this is one.
The amount of capital investment depends on the type of company involved. It will also depend on if you want to make it a Wholly Owned Foreign Enterprise or a Joint Venture. Locals have a much lower (normally 1/10th of foreign companies) required capital investment.
For a software company, it would depend on how you registered it. For example, if you said you were creating software, then the investment needed might be 2-3 million RMB. But if you called yourself a service company, you could get away with far less.
Ignore any of the opinions (including mine) you see on this, or any other public board. Talk to a real lawyer and get the current rules. It will be well worth the money spent.
Different cities have different requirements on capital issue. Usually it will be 1 million or more, details shall confirm with local agent.