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The Process and Expense of the Company Registration

Source:   |  Update: 29/09/2018, 17:28 (UTC+8)  |  

Firstly, you have to know what kind of company you want to register and what the main operation scope is before the registration. Now, KD International takes the common limited companies without special operation as an example to talk about the process, expense and work afterwards of the company registration.

I. The process of the company registration

You can begin the company registration after determining 7 core elements and equity distribution. KD International takes Shenzhen as an example as below, to introduce the process of the company registration.

The first step: determine the name

Time: 1-3 work days

Operation: Submit the apply for the name verification online after determining the company category, name, registered capital, the shareholders and the contribution ratio.

Result: The name verification is successful, otherwise another name verification is needed.

The second step: submit the materials

Time: 5-15 work days

Operation: After the successful name verification, confirm the information of the address, senior executives and the operation scope, submit the apply for pre-verification online. After the successful pre-verification online, submit the materials for the apply to the Industrial and Commercial Bureau by the time of appointment.

Result: receive the notice of the approval of the registration.

The third step: receive the business licence

Time: the day of the appointment

Operation: Take the notice of the approval of the registration and the original ID card of the person of delivery to receive the original and copy of the business licence in the Industrial and Commercial Bureau.

Result: receive the business licence.

The fourth step: carve the seal

Time: 1-2 work days

Operation: take your business licence to the designated carving shop of the Public Security Bureau, carve the official seal, the financial seal, the contract seal, the legal representative seal, the invoice seal of the company. Then, the company registration is completed.

II. The expense of registering a company

The expense is a common concern of many entrepreneurs. The expenses are different in different regions. We take the registration of a technology company with the registered capital of 1 million RMB in Shenzhen as an example, the expense is as below:

Classification

Items

Explanation

Comments

Registration

Industrial and Commercial Registration

Apply for the business licence and carve the seal

Necessary

The Address Registration

Provide the address which is registered on the business licence of the company. If you meet financial strain in the initial stage, you can choose a centralized offices address for the registration

This is the expense for the rental of the centralized offices area

Tax

The CA Certificate of National and Local Tax

The taxpayer makes the routine tax return via e-channel

Necessary

The Stamp Duty of the Registered Capital

The stamp duty is the five-ten thousandths of the registered capital

Necessary

Agent for Accounting

It is for the monthly accounting and tax return to the tax authority

Unnecessary

Agent for Taxation and the Determination of the Tax Category

The new company needs to handle the tax-control and determine the tax category before issuing invoices

Unnecessary

Opening the Account

Open the Bank Account

The bank opens the main company account for handling transfer and settlement and receipts and payments of cash

Necessary

Open the Social Insurance Account

The Social Insurance Bureau opens the social insurance account of the company

Necessary

 

Open the Accumulation Fund Account

 

The Housing Provident Fund Management Centre

opens the accumulation fund account of the company

Necessary

Note: The expenses are different in different cities according to the actual situation.

III. What else to do after the registration?

1. Open the basic bank account

You need to open the basic bank account after the registration.

2. Accounting and tax return

After the company registration, you need to handle the tax registration with the information of an accountant (including his name, ID card number, phone number). From the second month after the incorporation, the accountant needs to account and make the tax return to the tax authority monthly. When your company registers tax in the tax authority with relevant information, the tax authority will determine the tax category, tax rate, tax return time of your company and the tax clerk for your company. Then, your company will make the tax return and pay the tax according to the determined tax of the tax authority.

3. Pay the social insurance

The company should open the social insurance account of the company in the social insurance bureau of the relevant precinct in 30 days after the company registration, and handle the Social Insurance Register and CA certificate, sign the three parties agreement with the social insurance bureau and bank. Then, the relevant fee of social insurance will be charged automatically from the basic bank account when the social insurance is paid.

4. Apply for the fiscal processor and invoices

If the company needs to issue invoices, it should apply for the fiscal processor, participate in the training for using the fiscal processor, determine and apply for invoices. After the successful apply, the company can issue invoices itself.

5. The annual report of the company

According to Interim Regulation on Enterprise Information Disclosure, the company should submit the annual report of last year during January 1st to June 30th each year. The content of the annual report includes the company profile, main financial statistics and indexes, the change of the share capital and the shareholders’ information.

Note: If the company is an enterprise in mainland and its registration time on the business licence is before December 31st of last year, the company should submit the annual report this year.

The administrative provisions of Industry and Commercial Bureau says, the company which does not submit its annual report in the stated period will be recorded in the abnormal operation list and be fined. If a company have not submitted its annual report for more than three years, it will be recorded in the “black list” of the seriously illegal enterprises.If a company is recorded in the abnormal operation list, it cannot change, cancel or transfer its share. When it comes to the cooperation, the public can check the abnormal status of the company at any time. The legal person and senior executives of the company will also be restricted in the administration.