In recent years, with the country's vigorous promotion of "Mass entrepreneurship and innovation", a new wave of entrepreneurship has been launched nationwide. Guangzhou is the financial center of South China. More and more entrepreneurs come to Guangzhou to fulfill their entrepreneurial dreams since the conditions and process of Registering a Company in Guangzhou have reduced.





However, start a business is not so easy. For Registering a Company in China, few people know the registration process very well. Most people encounter various problems in the process of China Company Registration, and there are also many misunderstandings about the matters of the registered company.





What misunderstandings do you usually have for New Company Registration in China?

1.Setting the company name freely





The company name is the symbol used in company’s business activities. The company can only use one name and cannot be the same or similar to the name of the same industry. The general company name is composed of four parts: administrative region + name + industry characteristics + organization form. The name, also known as the trade name, is a sign used to distinguish other companies and is the most important element in the company name.

There are many New Companies that have successfully registered in Guangzhou. Some entrepreneurs use some strange names in order to avoid duplication and show uniqueness, resulting in a low rate of registration in the name. When preparing a Chinese company name, it is recommended to use a combination of two words, avoiding using unfamiliar words, and make it easier for customers to understand and remember. Before Registering a Company, it's a good idea to prepare some more names. Once the company name is taken and has passed the industrial and commercial registration, so don't change it at will. If the company name is changed, it will also involve changes in registered trademarks, copyrights, domain names, etc., which will cost a lot the company's internal resources.





2.Fill in the registered capital freely





When Registering a Company, it is also necessary to pay attention to the reasonable filling of the company's registered capital. Although the shareholders have no need to pay the registered capital when Registering a Company without capital verification, but some people think that the higher the registered capital, the better. In fact, the registered capital is not as large as possible, and it needs to be roughly matched with the scale of business operations. There will be some adverse effects for excessive registered capital. For example:





1)Excessively high and unregistered registered capital indicates that the shareholder has a capital contribution obligation to the founding company. If the shareholders fail to pay the capital in accordance with the regulations, they shall, in addition to paying the full amount to the company, also bear the liability for breach of contract to the shareholders who have paid the capital in full and on time. (Article 28 of the Company Law)

2) It is not conducive to the introduction of new shareholders, and the equity transfer tax is high.

3) The capital reduction process is cumbersome.









3.Must find a commercial room to register a company





Generally, a company needs to have a residence . In order to encourage investment, Guangzhou published the“Regulations on the Registration of Enterprise Residences in Guangzhou” as early as 2015, aiming to rationally release all kinds of venue resources, reduce startup costs, stimulate market participants, and greatly relax restriction on registration of corporate residences. The business premises does not have to be the actual and unique commercial warrant address.





4.Business scope only fills daily business





When a company was established, many investors were entangled in the scope of business.

The company's business scope refers to the areas involved in the company's business activities, such as production projects, business types, service items, etc., therefore, if it exceeds the business scope filled in, it will violate the law.





When filling in the scope of business, it is recommended to fill in the widest scope of business, some of which may not be in your business, but in fact, as long as the company does not engage in franchising and business operations, it generally does not affect the legality of the company's business and the signed contracts, and the company's external invoicing and tax payment.





In addition, as long as the business needs, the company can apply for change business scope registration at any time during the business period.









5.New company does not operate without tax return





When the company was successfully registered, many people thought that everything would be fine. In fact, this is just the beginning. Maintaining a company is not just a matter of protecting the business license. There are still many laws and regulations to follow, such as timely tax filing, annual inspection , company cancellation, etc. You also need to make a zero declaration although there is no income (sales), otherwise you will be fined.





If you do not follow the laws and regulations, it will bring credit stains to your company, and it will also have some negative consequences for the legal representative and responsible person of the company. For example， he can’t buy a house, do immigration and get pension insurance, and that you will be fined. He was prevented from leaving the country and could not take an airplane or a high-speed train. In serious cases, he could not be the legal representative or responsible person of other enterprises within 3 years.





Many new companies haven't hired professional accountants in order to save costs. However, a company that operates normally needs to prepare statements and tax returns. It is recommended that you can hire a part-time accountant or find a professional agency with the qualification of account bookkeeping to handle the company's tax return. TCBC is a good professional agency bookkeeping company.





Do you understand the five points of the above-mentioned New Company Registration in Guangzhou? I hope that all entrepreneurs can understand the issues and prepare for the establishment of the company, and achieve their entrepreneurial dreams.



