Want to remain in China?
There is a legal way to secure your stay here and avoid tightening visa rules and international travel restrictions.
For some foreign expats currently living in China the effects of the COVID-19 pandemic, combined with severe restrictions on international travel, has made their remaining here much more difficult.
Some, including some longer standing expats who first arrived here when the rules were different, have recently found it difficult to get further extensions on short-term visas, i.e. those without residence permits. In many of these cases people that have already been here for several years are finding that further extensions are now being refused.
Without an extension they will be required to exit China in a few days, despite, or even because of, existing business activities and the difficulty of obtaining a hugely expensive flight ticket back to their home country.
Historically, the solution for many was a short ‘visa run’ abroad; returning after a few days with a renewal, or a new visa. However, with the severe travel restrictions in place due to the pandemic, this option of exit and return has been closed off.
It is important to be clear that the only legal way to undertake paid work in China is to hold valid residency, together with a work permit. Whilst it is understandable that many who have previously used regular visa renewals on an ongoing basis have felt no need to alter their situation, ultimately it is the responsibility of every individual to be aware of a host country’s laws and to observe them for their own self-interest.
Legal Solutions Available
There are two legal solutions available to those foreigners wanting to remain in China:
· Who currently hold short-term visas here
· Who have business interests here without residency
· Who have a current work contract which will soon expire
· Who have had their employment terminated
· Who are students who want to stay and work after their studies finish
· Who wish to change their employment
· Who want to start their own business
I. Find a job in China and apply for a work visa
When you have a limited amount of time available to do this it can be difficult to find suitable employment, with the additional risk of ending up being tied to a position and people you do not like – and with no options to redress this short of starting the whole process again. If you hold this type of visa, it is illegal to undertake any paid work for other organisations; so both your income and your opportunities are restricted. There are also often constraints to issue work visas for employees over 60 years of age.
II. Register a company in China and apply for a visa as the Legal Representative
· Secure your status legally in China, on an ongoing basis
· The opportunity to ‘own’ your own visa as Legal Representative of your company
· Ability to conduct business legally with whom you wish to
· Ability to issue invoices (fapiao) to those you work with (many companies will not do business with people who cannot raise their own fapiao)
· Domestic company bank account for transactions – a legal requirement
· Potential tax advantages as a registered enterprise
Registering a Company in China - FAQs
Despite the obvious advantages, many people are reluctant to consider registering a company in China - because of concerns over the initial investment required, length of set up, difficulty of the process etc. My company, BM Consulting, has now helped many foreigners in China to register their own business. We are often asked:
How much do I need to invest upfront? This can vary because every district in China has its own laws and regulations. In my own case in Shanghai, there was zero initial investment; just an undertaking to invest a fixed amount by 30 years in the future – so it is very possible to cost nothing upfront.
How long does the process take? Again, there is no exact guarantee over this – the process is overseen by government. Usually the longest single part, after a company name has been approved, is the issue of the Business Licence. This can take around a month, or so. After that, it can take a further month to finalise matters – allow up to around two months in total, but it can be faster. To speed things up, have all your required paperwork ready in advance; we can advise you about this upfront.
What do I get as part of setting up my company? This depends on who you use to help you. At BM Consulting we offer an all-inclusive service for a single low fixed fee:
· Business Licence
· Business Bank Account Setup
· Outsourced Accounting and Finance Services
· FREE Company Registered Address
Are there any restrictions to doing this (e.g. age)? Not necessarily. As a Legal Representative it is possible to renew your visa beyond the age normally allowed for company employees. Again, remember that every district in China has its own laws and regulations – we can check this for you with local government.
Do I get a visa immediately with my company registration? No. This comes once the company has been set up, and is a separate – another reason not to delay your registration. Being able to prove that you are in the process of registering a company can allow for extensions to your current status.
When should I not set up as a company? If you are not planning to use it as a real business at all. The authorities can check to see if a registered company is really being used as a genuine business (e.g. bank account activity), not just as a ‘visa engine’, and revoke a Business Licence.
Will I get fast answers when I have questions, or need information? Yes. We are a British-Chinese company run to strict Western standards of customer service. The people who will liaise with government and with you are all English speakers.
When should I start the process? If your circumstances are due to change, e.g. your visa will expire in the next few months, the time is NOW.
How much does it cost in total to set up? RMB 13000 – fixed all-inclusive fee.
Please contact us for more information and a FREE initial consultation:
WeChat: sdcorrigan07 Email: [email protected] / [email protected]