Licensing & Documentation Required To Establish an EB-5 Office

Licensing & Documentation Required To Establish an EB-5 Office

I was going to title this chapter “The Tale of the Red Tape”, because you may face more red tape – and more frustration – at this particular point than you will when you are trying to help clients immigrate to the U.S. by investing in your EB-5 project. We can’t minimize the red tape, but we can help minimize the frustration by giving you a peek at what you will be required to do to become operational.


Once you actually begin the process, you may find that there are either more or possibly fewer documents required as the Chinese government struggles to become more diligent and efficient at the same time.


· Register your company name with the local Administration of Industry and Commerce (AIC). You can download their application from the State AIC website. The application requires the signatures of all shareholders in the company. If you deliver it in person, approval is typically granted within a day. You do not need to present the document yourself; you may designate a representative to file on your behalf. Should you choose to file electronically, the typical processing time is about two weeks.


· Open a preliminary bank account. We mentioned this issue in the previous chapter.


· Obtain a Capital Verification Report. This report assures the government that you have accurately represented the capital in your company. You will incur a charge from the independent auditing

company for this service. This document may be required before you can open a bank account.


· Apply for a business license. The Chinese may refer to a business license as a registration certification. You will need some or all of documents listed below, and possibly others in addition:


o Company name approval

o Copy of your office lease

o Capital Verification Report

o Articles of association

o Personal ID for each shareholder

o Name of and information regarding your attorneys


· Apply for an Organization Code Certificate from a local Organization Code Management Center. You must do this within 30 days of obtaining your business license.


· Register for local and state taxes. Although there are separate state and local tax Agencies, you need to file with only one. You will need all of the documentation listed above.


· Obtain a company seal. (You are not allowed to transport seals from Fisherman’s Wharf.) Before you can obtain a seal, you must first receive permission from the local police department.


· Here’s where things can get tricky. Once you have your seal, you must go back and pay for the Organization Code Certificate. The OCC process is not complete until you have returned with your seal and your payment, if a fee is applicable.

· Register your business with the local Statistics Bureau. They will require copies of your business license and your OCC.


· Open a formal bank account. Transfer your registered capital into the formal account.


· If you intend to bill clients from your Chinese office location, you will need to

o Apply for authorization to do so at both state and local tax


o Obtain uniform invoices

· If you plan to hire employees, you will need to

o Register with the local Career Service Center

o Register with the Social Welfare Insurance Center


The above is undoubtedly a simplified overview.  Even so, it probably helps you recognize that hiring a consulting service to handle the whole process on your behalf, and establishing an office in a Business Center, will save you a lot of time, effort, and money . . . and frustration.

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