Setting up a Company in China – All Accessible Online!
Recently, the Notice (Guo Shi Jian Zhu (2020) No. 129国市监注〔2020〕129号), aimed at further optimizing the procedure of establishment of new enterprises, has been issued together by SIX national government departments, including:
- State Administration for Market Regulation
- National Development and Reform Commission
- Ministry of Public Security of PRC
- Ministry of Human Resources and Social Security of PRC
- Ministry of Housing and Urban-Rural Development of PRC
- State Taxation Administration
The notice intends to facilitate the use of national integration government service platform (“All-in-one” platform一网通办) by the end of YR2020, which allows new enterprises to apply all the documents online simultaneously, including:
- Corporation registration
- Common seal engraving (online bill payment)
- Invoice application and Ukey application
- Registration of employees insured
- Registration of housing provident fund deposit
Benefits of Online Application
1. Shorter Processing Period
The total period of examination and approval by the government will be shortened within 4 working days by the end of YR2020 instead of 8 working days.
2. Non Face-to-face Application
Once the application of the new enterprise is approved, it can be either chosen to get the documents in a single counter of one of the relative government departments or from the delivery service. As for some paper documents, the enterprise can print them directly from the service platform.
3. Simpler Procedure
If applying for the company seal through the “All-in-one” platform, it is no longer needed to provide the documents (copy of business license, legal person’s identification, etc.) as before.
4. Less cost
Replacing the old mode that enterprises need to purchase the tax-control machine firstly and then deduct its cost by tax credits, the State Taxation Administration will offer the costless Tax Ukey.
Future Trends on Digitization
The notice also points out that relying on the national integration government service platform, the government will advance the application and the use of digital invoices (Ordinary VAT Invoice and Special VAT Invoice), digital seal and especially digital Business License as a legal and valid identity proof and electronic signature for enterprises to handle online business registration, official seal engraving, tax-related services, social security registration, bank account opening and other business.
If you would like to understand the process better, feel free to contact us for more information.
