Category Archive China

WeChat: What is it and Why is it so Popular in China?

WeChat. It allows Chinese people to make payments, install other apps, and even write micro-blogs. Despite its popularity in the Chinese mainland, it is not often used in other countries for privacy issues. However, let’s get started with the fundamental question:

What is WeChat?

WeChat (微信) is a Chinese multi-purpose app developed by Tencent. First released in 2011, it has become the most popular app in China due to its numerous functions, despite it initially only sending instant messages. Why did WeChat grow so rapidly in popularity? The answer is simple: as an all-inclusive app which has no competition in mainland China, WeChat is the dream of every developer. WeChat’s ubiquity in Chinese society makes it a necessity for anyone even visiting for a short time, so make sure to download the app once you’re in China, otherwise you might not even be able to pay a taxi driver.

WeChat data statistics and insights - most popular app in China - 2019

Figure 1 Share of mobile users using the leading social media platforms in China as of October 2019

The poll above shows that in 2019, 73.7% of Chinese netizens frequently used WeChat, a percentage that can only have since increased, especially since the outbreak of the coronavirus pandemic has make virtual transactions so necessary. Furthermore, in addition to being sponsored by the Chinese government, China’s youth tend to use WeChat to buy music online. Some may think that there is no need for WeChat because other apps could take its place.
But remember to keep in mind the “Great Firewall”, that blocks Facebook, Google, Twitter and WhatsApp. As the versatility of WeChat grew, the need for other social media apps dropped. Instead of a messaging app like WhatsApp, the Chinese netizens have opted for WeChat; instead of Google Pay, they have opted for WeChat pay, and so on. That’s why and how the app developed by Tencent has become an all-inclusive dominant super-app for the Chinese users.

How safe is WeChat?

Unfortunately, this question has no easy answer. According to Tencent, the company does not track or store users’ data, as long as the Chinese authorities do not solicit such information.  For foreign and Chinese users, the situation might be different: “Overseas Users” are not obliged to follow the strict regulations applied to Chinese users. For example, a Chinese user can not receive a message containing sensitive words such as “Free Tibet”; in other words, the app monitors the messages and censors some keywords which might be perceived as threatening by the political regime. Therefore, foreigners can talk to each other about sensitive topics, such as the 1989 Tiananmen Square massacre, but the same messages can not be received by Chinese netizens.

How Safe is a WeChat account?

In order to get a WeChat account, one only has to register and join the app with a username and a password, thus your account is safe as long as you choose an effective password and you frequently change it. The management of data is a little bit more troublesome: all conversation history is stored locally on your device, which implies that if you change your phone you will have to manually transfer the data to your new device. But why is this troublesome? WeChat doesn’t provide users with end-to-end encryption but with transport encryption. The end-to-end encryption is widely used by western messaging apps and it allows only the sender and the receiver to see the message; whereas the messages sent with transport encryption might be read by third parties. Even though Tencent claimed that all messages, once delivered, are deleted on the server, they still are on your mobile. According to Chinese law, apps, blogs and online forums are accountable for the content of their website which includes what users have written, so were the government to ask, WeChat would hand them your data.

Is WeChat Pay safe?

Users’ credit or debit card  information is stored in a secure server. However, WeChat Pay works only in mainland China and few other countries. WeChat pay is the most popular payment method in China and it requires you to link a source of credit or (just for users with a Chinese bank account) debit card. You can send red envelope (hongbao), transfer money and pay for your groceries with WeChat Pay—no surprise that the app has come to be the emblem of China’s cashless society.

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How To Open a Bank Account in China

Planning to operate a wholly foreign-owned enterprise business in China, whether it be a small business, a global company, or even a Fortune 500 company, can be fairly effortful. It is essential to take all the precautions needed to for your business to be successfully established. Once you acquire a business license, there are more steps to be taken further, such as, opening a bank account in China, to assist your business affairs. Although this step is necessary and can sound simple, opening an account in China can be challenging, especially recently, as the regulations became more stringent.

As of April 2020, the People’s Bank of China (PBOC) have made it obligatory to follow high level of analysis during the Know Your Customer (KYC) process. Because of this, the PBOC have ordered that all banks not only to oversee business activities, including financial transactions, but also to induct a few other conditions such as investigating your other bank accounts in addition to dormant accounts, seek capital transitions, examine times of transactions as well as suspicious or abnormal activities, restrict pay outs and limit online banking transactions.

In order to open a bank account in China, one must acquire a few essential documents including:

  • Ownership certificate (lease contract or site certificate) 
  • Proof of utility or rent transfer voucher for the past month (must resonate with lease contract)
  • Original copy of company business license (official seal, financial seal, private seal of legal person) 
  • Original copy of ID card and company associated documents of the legal person

As the process of opening a bank in China can be lengthy and challenging, China banks advise that a legal representative is present in China through the process. Due to the travel bans, banks in China have made an exception in video applications, if all is well the bank will then approve of the proposed bank account. Aside from all of these processes, the person representing the company applying for the account will have to visit the bank with additional documents. The bank will then call and confirm the opening of the account. 

Additionally, various Chinese commercial banks are trying their best to aid new clients with alternate solutions such as organizing a virtual interview (with notarized documents from the Chinese Consulate or Embassy) to make the process more manageable. 

The challenges involved in setting up a WOFE can be interminable and demanding, feel free to reach out to us for a consultation!

+1 561 729 6508 | [email protected]

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China’s Digital Market: How it Combats the Economic Consequences of the Corona Virus

Even before the surge of Corona Virus cases and the world going into lock down, the digital market in China has been on the rise, and more dynamically than most nations around the world. Such systematic progression is rooted in the country’s core business model as well as the business environment created by China’s rapid growth. Using their business environment as an example, we can more readily anticipate business trends and opportunities that will arise in this age of digital business.

From the beginning of the outbreak to the present, China has been unknowingly prepared for the change from physical work environments to the shift into a predominantly remote working business model. The growth of technology-based companies such as Tencent, Alibaba, and Huawei, as well as the integration of apps such as WeChat and Weibo into their daily life has put the Chinese economy ahead of the curve in the shift towards a digital business framework. The convenience afforded by the systems in place allow more remote services to be provided to the everyday consumer. This addresses the issue of public quarantine that’s present in most countries in the world.

In most regions of the world, retail and physical services providers have suffered economic losses. Countries are seeing record loss in sales and activity. These detrimental short-term effects could ripple out into long lasting issues if proper action is not taken. We can look at how the majority of the china market operates to see how business as a whole can come out of this pandemic stronger and more resilient than ever.

Looking at China’s business models we see that compared to the rest of the world, they rely mostly on remote access work sites as well as a more digital work environment. This is not only seen in service provider industries but also providers of physical goods. In many places in China  customers can have services brought right to your door with a simple press of a button. Following this, restaurant models even allow for customers to enter public establishments and sit alone, order from their mobile devices, and have food brought out to them automatically, without human interaction. These business models allow for the everyday person to go about daily routines without jeopardizing the safety of others. This example aside, China shows how their digital economy can be a success and comeback story for the rest of the world.

To fully grasp the effects of China’s digital market, this following diagram provided by McKinsey&Company.

Analysing the graph, it becomes apparent that China has capitalized heavily on the digital market since the popularization of smartphones globally. They have a vast share of their economic activity coming from mobile transactions as opposed to other forms of transactions. Finally, it is quite visible that they are gaining on the US economy in terms of start-up activity, and these estimates are guaranteed to have grown over the past few years.

The key takeaway here is that the rest of the world has much to learn about integrating technology and shifting their business into a more digital format. Another way to take advantage of China’s digital market and to come out on top after this pandemic is to capitalize on the network. China’s digital market runs on its own servers, and plays by its own set of rules.

China has something colloquially known as “The Great Firewall of China” which in essence allows for government controlled access of the internet available in China. As such, companies like Google have limited to no access, not allowing their indexes to be accessed by those living in china. To set up an online presence in China and be indexed by companies such as Baidu requires what is known as an Internet Content Provider License, or an ICP license. These licenses have become in such high demand as more and more companies attempt to break into the highly profitable Chinese market. Incorp China, has specialized experience in engaging with Alibaba, Tencent and other digital service providers involved in the Chinese digital market. This experience will help streamline the acquisition of ICP licenses. If you have any inquiries, feel free to contact us more about the subject.

Let us help you break through The Great Firewall of China and get inside their digital market.

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Guan Xi, the key to business success in China

While the Chinese business market is constantly modernizing, adapting, and growing; there is still a concept of immense cultural importance that has governed Chinese business practices for many years. The notion of 关系 (Guan Xi) is essential for any company to understand if they intend on doing business in China.

At its core, guan xi is about building relationships. Trust is crucial to business success in China, and it is something that does not come quickly. While it may seem counterintuitive in the current fast-paced business environment of the United States, a great deal of relationship building in China exists outside of conference calls and boardroom meetings. In China, face to face interaction helps build a kind of trust that simply cannot be acquired through only communicating through a phone speaker halfway across the world. Because of the integral part that guanxi plays in Chinese business; it is essential for an American company hoping to do business in China to make sure that they have a strong understanding of Chinese culture in order to build a strong relationship with Chinese businesses.

The impact of guan xi cannot be understated. Building guanxi with a Chinese company is tantamount to forming a sort of friendship with them. Like any friendship, Chinese companies that have guanxi with American companies will be more inclined to have more confidence in business interactions as well as be more willing to pursue further business with that company. Once guanxi has been established, a Chinese company will be more willing to pursue further business ties with a company who has earned their trust and respect.

A good example of guanxi in action is when one of Incorpchina’s clients needed urgent help to apply for general taxpayer status. Robert Fisch, Incorpchina’s CEO, went to the tax bureau and found the bureau chief. Rather than immediately getting down to brass tacks, Robert drank tea with the bureau chief all morning. After getting to know each other’s backgrounds, guanxi had been established. The bureau chief was willing to connect Robert with the department heads and continue building connections with Incorpchina. This demonstrates how once guanxi is established, it will likely lead to deeper relationships.

Incorpchina’s client urgently needed taxpayer status. Normally, one would have to present themselves in person at the tax bureau in order to complete their application. Even after appearing in person, the client might still have to wait for upwards of a month for their application to be approved. Due to the relationship that had been established between Robert and the officials at the tax bureau, the office allowed the contract to be processed in two days, allowing the client to win business in China.

Ultimately, a strong understanding of guanxi can not only expedite business in China but also serve as a tool to expand and strengthen a company’s enterprise within the Chinese market. In China, trust and relationship building are truly the keys to prosperity; once one has established a close relationship in China, success will surely follow.

ICP Licensing: How to Start Your Chinese Business off Strong

Promising untapped markets are emerging all over China. As companies race to break into the new business climate, ICP Licensing is in growing demand. With rules and regulations constantly changing, and an overwhelming amount of Chinese paperwork, the registration process can get confusing. Nevertheless, completing this step is a fundamental part of your successful game plan, and we’re here to help.

In this article, we’ve created an all-you-need-to-know-guide on how to properly establish a competitive web presence in any mainland region.

Beware: This is a fragile and crucial part of your company’s success. The process is not to be taken lightly, although there are certain service providers out there who treat it so in order to make a quick buck or yuan. Pay attention to the points provided and we will teach you how to do it right.

First things first:

As in all Chinese business, cultivating strong relationships is step one. Registering your license involves proving to the government that your intentions are pure, that your site is worthy of hosting, and that you can operate within the boundaries of Chinese law.

No book or website can fully prepare you for this process. Sure you can google a nice flowchart, but the business culture in the east is rooted in a social system more delicate than any western country.

Certain steps absolutely require a Chinese contact. For example, certain user registrations require an input on SMS verification codes which only send to China-based numbers. Furthermore, not all registration sites accept international payment methods.

As your documents are filled out and translated from region to region, a trusted cultural insider will quickly become your most valuable research tool.

See why Incorp China is the right relationship for you here.

Now, let’s get specific…

What is an ICP License?

An ICP (Internet Content Provider) License is a permit, applicable to legally registered companies, issued by the MIIT (Chinese Ministry of Industry and Information Technology) that permits websites to operate in China. It is a key piece in your site going live, one between purchasing a hosting and creating your domain.

Does every business need an ICP License?

If your goal is to launch a website using a server hosted in China or on a Chinese content delivery network, an ICP License is mandatory.

However, say you are a US company hosting your website in America. The Chinese consumer is merely a fraction of your target market. Is it possible for your website to function, for Chinese consumers to view your content without an ICP License?

The answer is yes, but anticipate firewall blockage and don’t expect a fast-loading website.

Note: In Hong Kong, thanks to a more western style set of laws, entering the online playing field can be a smoother process.

Learn more about the benefits of opening your company in Hong Kong here.

Which ICP License is right for my business?

There are two types:

1. Commercial License

A commercial license is for companies offering goods or services to customers chiefly online. Its parameters are strict and swift:

• Commercial ICPs are almost never issued to companies with any foreign investment.
• Therefore, you must be a completely Chinese-owned business.

2. Bei An (Filing) License

The ICP Bei An license is the standard license, available to foreign-owned entities: Representative Offices (RO), Joint Ventures (JV), or Wholly Foreign Owned Enterprises (WOFE). All mainland China hosted sites must obtain one before they begin any business online.

Given that our company assists non-Chinese businesses in entering the market, this is the license we will focus on.

How do I get an ICP Bei An License:

Within the category of Bei An licenses, there are two ways to go:

A. Proxy Process

This is the only option for companies that do not have a physical entity present in the country. It allows you to nominate a locally-registered Chinese company to hold the domain for you as a proxy.

With this plan, you take on additional risk. Because you are linked with entities other than your own, if the proxy becomes blocked for any reason, it’s game over for everyone with no way back in.

B. Direct Process

This plan ensures the highest possible control over your site. The process is slightly longer, but ultimately worth it for companies serious about their Chinese presence.

When a client needs this license, here’s what happens in flow chat form followed by a more clear explanation:

Chinese ICp licensing process, ICP License,

• We translate and submit the required documents to your web provider
– In review, additional documents may be required
– When approved, your provider sends the documents to MIIT

• MIIT reviews your ICP license application documents
– When approved, we will be notified via our Chinese phone number
– Within twenty days, you will have received a registration number

• We apply for a PSB (Public Security Bureau) ICP Filing
– We have thirty days to apply after receiving the number
– Once again, the documents must be submitted in Chinese

• We submit the documents to start accessing China-based web services
– With the license, you can now purchase hosting and CDN services
– Finally, you are able to register for a .cn domain

Note: Failure to keep the information you submitted to MIIT up-to-date can result in fines or complete cancellation of your ICP license.

Once your site is up and running, the license numbers will be displayed in the website footer.  Check out this example:

ICP Licensing footnote example picture Michael Korswww.michaelkors.cn

At this point, local competition knows you are serious about your sales and ready to compete. Your fast-loading website will keep customers around and partners engaged, and all the paperwork will be worth it.

Ready to get started? Call now for a consultation with an IncorpChina team member, and establish your most important relationship in China success. +1 561 729 6508 | [email protected]

#icplicensing #businessinchina #chinesemarket

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Be Prepared: Five Important First Steps for Setting up your Business in China

Compared to the fast-paced explicit processes which dominate Western business, starting a company in China can be a headache.  Combine extensive legal work with a social system opposite of your own and even the most experienced businessmen and women are in for a challenge. 

However, establishing a presence in China continues to be a profitable move for entities in every business sector. With endless resources at your disposal, how to begin gets confusing.  We’ve stripped away all the particulars and provided you with a basic idea.

The following list highlights five steps that your business needs to properly complete before beginning operations in China.

Think about how your business will fit into each section and most importantly, think of the relationships you can and will establish along the way. To succeed, you need sturdy connections to lean on during every step. Finally, be patient. Remember everything takes time in Chinese business culture.

 

1. Research, research, research

Begin by investigating the industry and areas you are interested in. Government officials publish a five-year plan stating the specific kinds of businesses they are looking for. Make sure to use it.

When you have an idea of the best place for your business, take a trip. Don’t stay in one place; compare other regions. Start making observations. Attend trade shows. Network.

2. Decide which entity is best for you

There are three kinds of business entities you can register for. Consider your particular business scope and decide which entity will supply you with the most opportunity and least amount of risk. The three potential business entities are:

i. Representative Office (RO)
– significantly limits what your company can do
– easiest to open

ii. Joint Venture (JV)
– your Chinese partner will have a home field advantage
– JVs create greater risk should the partnership fail
– only entity in which a “restricted” business can operate
– less limitation

iii. Wholly Owned Foreign Enterprise (WOFE)
– allows foreign entrepreneurs to own 100% of the company
– requires an extensive set-up process with registered capital
– can operate as trading and retail companies

3. Develop a five-year business plan

Be precise but be broad. Once your business plan has been finalized, you are only able to operate within its guidelines.

Note: Protecting your intellectual property is important. If you plan to trademark your company or product, act early and do so in both Chinese and English.

4. Apply for approval with your local authority

Necessary documents can vary depending on where and with who you are doing business. Be sure to comply with the regulations specific to your location. The documents must be converted to Chinese by a reliable translation company. Applications can take up to 90 days to be approved.

5. Find a bank

Once you have approval, you have 30 days to register with the Chinese Administration for Industry and Commerce (AIC) and apply for a business license. Once you have the license, you will be able to open a Chinese bank account.

 

Know more: Authenticating your US documents to be used in China

With these five steps complete, you have solidified a foundation.  Now it is time to focus on the particulars.  Exactly which way to go next will depend on your specific business plan.  Again, this can get confusing; but Incorp China is here to help.  Whether your next step is filing a trademark, registering for an ICP License, or finding a general manager and employees you can trust, we know how to get it done right.

 

“The time is now. Be part of the process as China becomes tomorrow’s economic powerhouse.”

Ready to expand your business and break into China’s upcoming markets? Call now for a consultation with an IncorpChina team member, and establish your most important relationship in China success.

+1 561 729 6508 | [email protected]

 

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Once in China, Do as the Chinese Do

 

Considering the dramatic cultural differences from the West, doing business in China can be difficult.  How well you adapt to the deeply rooted Chinese customs will profoundly influence the success of your business.

In China, cultural competence takes time. Business culture is very traditional, involving behaviors and beliefs that date back over 5000 years. That said, having a local representative who clearly understands both sides is crucial.

 

You will quickly learn:

Guanxi is everything. Defined as the connections and relationships which facilitate business and commerce, this is the most critical aspect of Chinese business culture. Cultivating strong relationships is the first step towards any Chinese market.  To properly establish Guanxi, awareness of and compliance with the following aspects of Chinese business culture should be the primary focus of all companies.

 

1. Basic Communication

In China, even at the most fundamental level, we find a tone language entirely different from common western dialects. Having someone able to communicate in a native Chinese tongue will be favored and seen as a sign of respect.

Clear communication by your host country’s standards may translate rudely in China. While the individualistic mindset of Western business fosters the idea of speaking up, of using as many words necessary to communicate one’s point, China business culture favors extreme modesty.

Furthermore, there are considerable differences in both verbal and non-verbal communication.

To name a few:
• Greetings and pleasantries differ
• Chinese names are reversed compared to western names
• Eye-contact is not necessarily a sign of respect
• Casual talk is a necessary precursor to business

2. Collectivist Culture

Westerners often view themselves as highly independent entities, whereas in China, an interdependent mindset is essential. China’s workforce is built on discipline and corporation, where the group always takes priority over the individual.

To showcase one’s commitment to the bigger picture, one is expected to act in a calm collective manner at all times. They should listen with intent and always be heedful to the needs of others.

3. Hierarchal Society

In China, hierarchy holds true, and status is power. Seniority must always be respected.

Especially in the decision-making process, seniority dictates authority and patience is pivotal. Decisions made with haste will be seen as insulting. Even simple matters are expected to be processed by multiple people until eventually, the manager with the highest status decides on a verdict.

4. Saving Face or giving face, especially in the midst of conflict

The concept of face, or miànzi, is an essential abstract notion that governs all social interaction in Chinese culture.

Extreme emphasis is placed on harmony and public dignity. People are expected to further these values by “giving face” or “saving face.”

To give or save face, extensive etiquette must be applied to all interactions. Composure is key. Limit expression to what is appropriate, and continuously consult a trusted Chinese representative on how to behave.

Especially in the midst of conflict, the art of “face” is vital. No matter the issue, maintaining face will always be the most pressing concern. You will find, negotiations often preserve harmony, and consequently save face, by implicitly working around a conflict, as opposed to confronting it straight on.

Such diversity may be overwhelming at first, but with patience and the right representatives, this highly educated, highly capable business atmosphere will generate authentic and successful long-term foundations.

“The time is now. Be part of the process as China becomes tomorrow’s economic powerhouse.”

 

 

Know more: How Important Is To Have Local Representatives In China?

Ready to expand your business and break into China’s upcoming markets? Call now for a consultation with an IncorpChina team member, and establish your most important relationship in China success.

+1 561 729 6508 | [email protected]

#chinesebusiness #chineseculture #whychina #chineseindustry 

 

business registration in china

The Transformational Trend: Why China is the place to be and how to start your business there

Why bring your business to China?

The future of China’s economy has never looked this bright. With a thriving middle class, a new wide-spread consumerist approach to spending, and increasing liberalization, China is now home to a wide variety of promising untapped markets.

Since the late 1980s and 1990s, China’s economy has been executing significant reform to the state-owned industry. Upon the passage of The Company Law in 1993, limited liability companies were approved, and firms were able to retain a share of their profits. As a result, private ownership increased rapidly. By 2005 it accounted for about 70% of China’s gross domestic product.

Among reforms, China established an unprecedented manufacturing presence as a result of highly competitive pricing and sheer production power. After dominating our global economy as the world’s largest exporter of goods since 2009, China’s focus now shifts from expansion to stability, that is back to service and consumption.

Amidst all this economic activity, China’s middle class has boomed. With a current urban population of around 800 million people, that is only going to grow, 54% percent are expected to be the upper-middle class by 2022.
Take a look:

China’s Middle Class as Percent of Urban Households, doing business in china

At this point, the economy’s growth has slowed. However, China is still ahead of their goal to double GDP between 2010 and 2020 and more industries are open to investment than ever before.
See below China’s GDP yearly growth since 2008 and China’s GDP annual growth rate over the last four years, respectively:

 

 

 

 

 

Even with a declining growth rate, China’s economy is still expanding at a rate three times higher than that of the US.

This is merely the start of China’s rebalancing. Economic prosperity is spreading as wages rise and workers demand better treatment. Furthermore, the quality of life is improving thanks to upgrades in transportation, health standards, and a wealth of technological advancements.

Increased opportunity and success is leading to higher disposable incomes and ideal target markets as the new Chinese consumer emerges, ready to spend. See below China’s consumer spending trend over the last ten years:

 

 

What is driving the Chinese consumer? Markets dealing with luxury items and services are bursting with opportunity and demand.

Interest continues to increase in:
• technological products
• luxury brands
• cosmetics
• nutritional care
• trendy foods
• high-quality goods
• entertainment
• travel

Get specific: See why Hong Kong is a great place to start

“The time is now. Be part of the process as China becomes tomorrow’s economic powerhouse.”
Ready to expand your business and break into China’s upcoming markets? Call now for a consultation with an IncorpChina team member, and establish your most important relationship in China success. +1 561 729 6508 | [email protected]
#chinesebusiness #chineseculture #whychina #chineseindustry #RO #JV #WOFE #chineseeconomy #GDP #thenewconsumer #culturaldifferences #chinesemarket #economictrends #AIC

e-chops, echops, chinese company seal, company chop, company chops, chinese chops, chops

E-chop—Pioneer for Paperless

“Please have the company chop on the paper we received from the government and then send the original ones to us ASAP.” Are you familiar with above words in emails to some degree?

In China, the Government requires companies to have a “corporate seal” called Chops. Similar to the signature from an authorized representative in western countries, these corporate chops are the way to register official transactions, submit documentation, and validate paperwork in China. The body is where you bring more details about the subject or the problem. There’s a huge amount of paperwork required from the Chinese government, so company chops are typically used. However, to meet Chinese sustainable developmental regulations, the relevant department encourages a paperless environment. To adapt to this demand, the e-chop option becomes the ideal application. E-chop is the digital version of its physical counterpart and can be used with the same effectiveness as a paper Chop. E-chop is created by electronic seal technology which takes the place of the traditional physical seal.

While some people still use the traditional seals, the use of this electronic version is growing, and the full implementation and use is a matter of time. For instance, two-thirds of tax bureaus in Guangdong Province have adopted the e-chop system. More than 2 million documents are processed each year and the administrative costs saved equal about 5 million in RMB with an additional 35% increase in the comprehensive office efficiency. There are a variety of chops for different uses. While for some the process can be overwhelming and time-consuming, Incorp China can navigate it for you, reducing unnecessary interaction with Government offices.

Incorp China has provided expertise and personalized service for the past 30 years. Let us grow your business.

10 steps to authenticate your U.S. documents to be used in China

This might be something you have not given a whole lot of thought in the past. However, Chinese authentication of US documents is required with almost every application process you will encounter on the road of opening your own China business entity. Registration of an entity in China requires documentation preparation in the US and China. We will help you with documentation preparation in both the US and China saving you time and money. Having your American documents authenticated by the Chinese Consulate means they have passed the official screening to be used in China.

Failing to prepare your foreign documents may result in the delay or refusal of your applications. Here’s a guide on how you can complete this initial process in ten steps:

1. Identify documents

At first, you will need to select the documents that need legalization and clarify who is the legal representative/applicant for the company.

2. Notarization

There are some instances in which the US documents need to be notarized. In this case, we have a specialized legal services providers network to help you in completing this step easily.

3. Fill out document authentication form

Your legal representative/applicant (as defined in step one) now has to fill out and sign the Chinese application for document authentication. Because forms may vary, depending on in which state you want to apply for US document authentication, visit the respective state’s Chinese consulate website to find the correct form.

For the New York China consulate, e.g. you can find the document here: http://newyork.china-consulate.org/chn/fwzc/cgbg/P020171201186551196801.pdf

(Leave section 1 and 7 blank. Have legal representative/applicant sign twice in section 8 (top and bottom). We fill out section 7 and sign as the agent in section 8.)

4. Compile supporting documents

The next step is to obtain a copy of the following supporting documents:

  • The legal representative’s/applicant’s passport
  • Company’s certificate of existence and good standing
  • Articles of incorporation

5. Submit the documents

Submit the documents that need to be legalized by the State Department or Secretary of State to be certified. Some states require to authenticate the documents through the county’s clerk office before submitting them to the State Department or Secretary of State, so be sure to check.

6. Keep a record

Once the documents are certified by the State Department (and possibly the county clerk’s office) make a photocopy of them for your own records as well as the next step.

7. Submit the docs to the Consulate

Go to the Chinese consulate or embassy and submit the originals as well as the photocopies of the certified documents along with the application for the authentication and supporting documents.

8. Get a receipt

The consulate will issue a receipt with the total owed and the pick-up date for your documents.

9. Collect your authenticated documents

Return on the pick-up date with the receipt, pay the amount owed and process to then collect your authenticated documents.

10. Verify that all the documents have been authenticated

Once you’ve completed all the steps above, verify that all your documents have been authenticated. In case we have completed this process for you, we would then ship the authenticated documents back to you, our client, or wherever you want them shipped.

 

If you have any questions or would like to get a free consultation from us, simply email [email protected] or call +1 (561) 729 6508.

Like what you read?

Continue with 7 Benefits of Opening Up a Company in Hong Kong:

 

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