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China’s 3-in-1 license

What is the 3-in-1 license?

The 3-in-1 license is a new format of the business license currently in existence. By the end of the calendar year 2017, all original business licenses must be updated in order for the company to be able to continue operating. The updated business license will merge three company certificates – the firms’s business license, tax certificate and organization code – that had to be issued separately so far. As a result, your company will officially run under a single social credit code.

 

Why implement such a change?

This new legislation is being enforced only months after the government’s update of the fapiao system. (Read more about that here.) Both legislative changes follow the common goal of better communication between government bureaus, streamline official procedures and ensure a more centralized supervision of all companies.

 

How to switch from a standard business license to the new model?

There are nine steps to updating your business license.

  1. Prepare your application, consisting of an Application Form, Application Report, your current business license, tax certificate and organization code certificate.
    This application then has to be submitted to multiple institutions in order to update their record.
  2. The Commercial and Industrial Administration Bureau will be the first to receive your application.
  3. Upon approval by CIAB, the documents have to be submitted to both the local Tax Bureau and National Tax Bureau, to update their records
  4. After getting approval from the above tax bureaus, the Market and Quality Supervision Commission will need to be updated
  5. Then, all banks your company is holding accounts with have to be notified by providing them with the approved documents
  6. At the local Foreign Exchange Registration Bureau, your Foreign Exchange Registration Certificate has to be updated with your new business license
  7. Your new information will also be captured in your Financial Registration Certificate at the Finance Bureau
  8. Afterwards, the Social Insurance Bureau…
  9. …and lastly, the Housing Fund Bureau will have to be updated.

All in all, this will take a few weeks to complete. The new business license model is mandatory for all types of business entities, apart from self-employed individuals.

 

Does this apply to every region equally?

In Shenzhen and Zhejiang Province, the 3-in-1 license will technically be a 5-in-1 license, also replacing the Social Security Registration Certificate as well as the Statistics Registration Certificate. Shanghai and Guangzhou, however, decided to abandon the Statistics Registration Certificate altogether. Beijing-based companies benefit from an extended transition period, ending with the calendar year 2020. Some provinces do handle their transitions with slight variations, however generally the updated legislation affects businesses across China equally.

Why go through all the hassle by yourself? Incorp China will happily assist you with your move from a standard business license to the updated 3-in-1 model. Your top priority is to look after your everyday business. It is ours to support you.

In case you have any questions or are looking for a free consultation, please don’t hesitate to contact us. Call us or write us an email: +1 (561) 729 6508, info@incorpchina.com.

We do much more than just looking for your business license!

Have a look at our different services here.

Or read about how we can help you open a bank account – even under tightening restrictions for foreigners – here!

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support, airport, China, WOFE, open a business in China, china business support, china business consulting

Why You Need a Flexible Support System in China

The problem

We always look to  provide the best support to our clients, but due its size, China can be an overwhelming country , so we understand when our clients are hindered to come directly to our office in Shenzhen. Just recently, one of our clients, a paper products manufacturer, was looking into moving part of his manufacturing process to the South West region of China. Since the team of three was on a strict time schedule they were not able to come to Shenzhen personally in order to meet with Incorp China’s team to discuss the bureaucracy behind such a move.

The solution

Therefore, Incorp’s CEO, Robert Fisch and two of his team members took a train, planning to meet the client in the city close to where they were looking at potential factories looking to provide an appropriate support. Since it is hard to stick to a specific time schedule with factory visits, the Incorp team needed to come to the airport to catch the client shortly before they would fly back to the US. Thankfully, everything worked out and the US clients had over an hour to discuss the procedures behind setting up an entity in China with Incorp China. A Wholly Foreign Owned Enterprise (WOFE) would allow the client to invoice other Chinese factories, in the local currency, Renminbi.

The benefits

Taking such a long trip simply to meet a potential client might seem like an odd allocation of company resources. Incorp China, however, has built its success on establishing personal relationships and providing the quality service and support our clients deserve. Going the extra mile for our clients shows that we truly care and are prepared to help, no matter the obstacles.

The lesson

Incorp China is about much more than just serving clients. We want to be a long term partner and support system to all our clients and bridge the gap between the Eastern and Western business world. Flexibility plays a huge factor in that, especially since China can be unpredictable in terms of its rules, regulations, and conditions for foreign enterprises. We have the experience and are prepared to deal with these challenges. Incorp China will assist you no matter where you are from, where in China you want to operate and how big or small your mission might be.

Contact us!

Are currently looking into expanding or moving your business to China? Let us do your paper work for you – so you can fully concentrate on your business. Call us for a free consultation today at +1 (561) 729 6508, or write us an email at info@incorpchina.com. We are looking forward to hearing from you.

 

Want to know how Incorp China help saving an oil platform? Click HERE to read the story.

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