More and more people are investing in starting their own companies, and the number of corporate registrations is on the rise. For most entrepreneurs, registering a company is a hassle, which is why an increasing number of individuals are opting for corporate registration agencies. What should be noted when opening a registered company?
1. Company Name
Firstly, when registering a company, make sure to choose a good name. There are many rules for naming a company, which must be in accordance with the Company Law of China. For example, the company name must not be similar to that of other enterprises in the same industry approved by the same administrative authority for registration, except for investment relations. So, first, adhere to the rules.
The name of the second company should be memorable and meaningful, avoiding catchy names that are not worth the effort. Name it according to the main business direction. When registering the company with the Administration for Market Regulation, check online for any similar or identical names. Additionally, prepare 3-5 company names for registration to avoid rejection.
2. Registration Address
The registered address is also a crucial matter for registering a company. Firstly, the registered address is involved in tax incentives or startup subsidy policies, which are vital for businesses, especially small and micro startups. To attract investments, some regions offer substantial tax incentives and startup subsidies. Another issue is the registered address. If considering a change of office location, you can opt for a virtual address for calling, thus avoiding the need to change the registered address when altering the office location, and it can also save some operational costs.
3. Registered Capital
Registered capital is divided into subscribed and paid-up, but most are on a subscribed basis, with some industries requiring paid-up capital. Under the subscribed system, it does not mean that the registered capital of the company can be filled arbitrarily. The higher the registered capital, the greater the responsibility. For instance, if the registered capital is 10 million, the shareholders bear a 10 million liability. Additionally, stamp duty is levied at 0.05% of the registered capital. Therefore, the registered capital should be considered based on one's own strength and can be appropriately increased in line with the industry standards. Later on, if development requires, funds can be added.
Trademark
After registering a company, it is essential to promptly register the company's trademark and brand trademark. This is a crucial issue, yet many small and micro-enterprises tend to overlook it, believing their business is not large enough to warrant protection. Some companies specialize in registering trademarks for newly established companies, and as your company grows, it may face litigation for damages. Therefore, the company should ensure professional trademark protection from the outset.
5. Accounting and Tax Reporting
Tax reporting and accounting is often overlooked by small and micro enterprises. Ultimately, the issue lies in the founders' insufficient emphasis on tax reporting and accounting. If you register a company, you need to file taxes on time. If there are no taxable activities, you should declare zero. However, consistently declaring zero can be risky. If you don't have a professional accountant or finance staff, it's advisable to hire an agent to help with bookkeeping, which can cost a few hundred dollars a month.
Established in 2015, our team is a professional corporate service institution approved by the Administration for Market Regulation, and a member of the Chengdu Accounting Agency. After 8 years of growth, the group has developed a comprehensive service system. We specialize in company registration, agency accounting, tax planning, license acquisition, and trademark registration, with a commitment to "speedy and trustworthy" service. We have resolved a variety of challenges for thousands of businesses in their development process, including company registration, financial agency, intellectual property, and qualification processing.
