Register the company and apply for a Business License Certificate
Agency: Shanghai Administration for Market Regulation (SAMR)
In order to start and operate a new business, an entrepreneur must register the company and obtain a Business License (工商营业执照) from the Shanghai Administration for Market Regulation (SAMR). The applicant must prepare and submit an application online at the website of the SAMR (http://yct.sh.gov.cn). The availability of the company name can be verified during the filing of the application form.
Previously, five other licenses were required, the Business License, the Organization Code Certification, the Tax registration, the Statistics Registration and the Social Welfare Insurance Registration. These have been combined into one license. Upon receipt of an application, SAMR will circulate the application materials to the relevant bureaus mentioned above for registration. After filing the application, the entrepreneur must visit the Single window at SAMR to collect the Business License and to present the following documents:
- Application form;
- Articles of association;
- Shareholders’ personal IDs;
- Authorization Letter;
- Copy of real estate certificate for the office (Signed by the property owner);
- Supplementary information registration form.
Time and cost: 5 days, no charge
Make a company seal
Agency: Seal Maker
To make the company seal, the company shall designate a company possessing a Shanghai Special Industry Permit (company seal carving) (《上海市特种行业许可证》公章刻制业). This process costs from CNY300 to up to CNY1,000 depending on the design and the quality of the seal.
Time and cost: 1 day, CNY 400 on average
Obtain the tax filing control equipment and apply for an authorization to print or purchase financial invoices
Agency: Tax Authority
A tax filing control equipment is required in order to issue VAT invoices (both, general and special). This equipment is also referred to as an “encryption box”. There are two developers/manufacturers that are authorized to manufacture the encryption box, and companies have the liberty to choose to use either one of them. Price of the equipment and annual maintenance charge (CNY 200 + CNY 280), it is established by Announcement No. 1243 of 2017 of National Development and Reform Commission (NDRC [2017] No. 1243). It is required to activate the tax filing control equipment at the Tax Service.
The company must obtain an approval to print or purchase financial invoices. The company must apply to the relevant authorities (that is, the state and local taxation offices) for approval to purchase and issue financial invoices/receipts. The application can be submitted online at https://www.tax.sh.gov.cn/xbwt/. The taxation authority will issue the invoice purchasing book, if it agrees to grant the company such qualification. The applicant must visit the Shanghai Municipal Office of the State Administration of Taxation to collect the approval and present the following documents:
- Tax registration certificate (one copy);
- Identity card of taxation personnel (one copy);
- Application forms;
- Models of invoice seal;
- Company seal.
The Shanghai State Tax Bureau and the Shanghai Local Tax Bureau have co-issued a circular (“”Tax Circular””) on February 25, 2013 providing that since January 2012, micro and small size companies no longer need to pay fees in respect of the purchase of invoices.
Time and cost: 2 days, CNY 200 for the encryption box and CNY 280 annual fee for maintenance of encryption box
Register employees with the Social Welfare Insurance Center
Agency: Social Welfare Insurance Center
Within 30 days of recruiting employees, the company must register them with the Shanghai Municipal Human Resources and Social Security Bureau, which is the local social insurance office under the Ministry of Human Resources and Social Security. The registration purpose is to establish the obligation of payment of the employee social insurance. The company must apply for employment registration for qualified personnel and for social insurance coverage registration. Relevant application forms can be electronically downloaded or obtained from the local offices, and these documents shall be filled and submitted through the following website: https://zzjb.12333sh.gov.cn/zzjbdl/jsp/login.jsp. Companies can register online if they have already obtained a code from the Human Resources Management Department. After the application, supporting documents must be submitted at the relevant agency.
Upon receipt of an application for employee registration, the relevant authorities will issue a notice to open a social insurance account for the company. The company must then apply to open a special account at the designated bank or use the existing one. The local social insurance office will issue the social insurance registration card for the company upon receiving a bank notification of account opening, so that the company can start paying social security contributions to its employees.
Time and cost: 1 day, no charge
