Set Up a Business in China with United Suppliers Group: Company Articles of Association
- Максим Миненко
- 25 апр.
- 2 мин. чтения
When setting up a company in China, one of the most important documents you'll need is the Articles of Association (AoA, 公司章程). This document serves as the foundation for how your business will operate, covering everything from management structure to profit distribution.
The AoA must include several key sections:
- Company name and registered address
- Business activities and scope
- Amount of registered capital
- Information about founders and their rights/responsibilities
- Details about investments (forms, amounts, and conditions)
- Appointment of legal representative
- Organizational structure and decision-making processes
- Procedures for dissolution and liquidation
- Any other important provisions agreed by founders
The document must be written in Chinese to be legally valid.
Registered Capital Requirements
China no longer requires a minimum registered capital for most industries, including trading and import/export. But choosing the right amount is still important, and depends on two key things:
First, your operating budget before the company becomes profitable. Using registered capital to cover startup costs is smart—it’s not treated as taxable income.
Second, how your company is perceived. In Chinese business culture, your registered capital shows your company's strength and reliability. For trading or import/export businesses, a common starting point is around 500,000 RMB.
Founders also need to set a timeline for depositing the capital—up to 5 years. Extensions aren’t allowed, but you can reduce the amount later if necessary.
Capital contributions must come from the founders’ personal or company bank accounts. If you're a foreign investor, the transfer should clearly state it's for “registered capital”, whether the funds come from overseas or within China.
Choosing the right company type is a key step if you’re planning to start a business in China.
It affects everything — your company structure, ability to work with Chinese partners, get a business or work visa, and open a local office.
If you’re just exploring the idea, it’s important to understand the legal and admin side from the start. There are different options for small businesses, product-based companies, and consulting firms looking to set up in China.
United Suppliers Group tracks changes in laws and business practices in China and Hong Kong. In this blog, we’ll keep sharing practical updates to help you launch and run your China business the right way.
