Connect & Solve
Trade Q&A
What Core Qualifications and Full-Process Compliance Requirements Are Needed to Register an Import and Export Trading Company?
Resolved
SERVICE
TRACKING NO. 20260429 / GLOBAL Zhongshen Trade · 23+ Years of Expert Trade Agency
Trade Challenges?
No import/export license, customs delays,
or complex compliance issues.
or complex compliance issues.
Our Solution
One-stop full-chain agency: ensure efficient
clearance and fund security.
clearance and fund security.
Cost OptimizationUrgent ClearanceGlobal ResourcesCompliant Rebates
I have been engaged in domestic furniture wholesale business in Shanghai for 5 years. Recently, I have 3 stable purchasing clients from Southeast Asia. After 3 months of negotiation, they finally agreed to sign the contract, but they require to cooperate with a company with import and export qualification, otherwise they will transfer the order to other suppliers. I am in a hurry to register an import and export trading company, but I have no idea how to start. Yesterday I asked two friends engaged in foreign trade, one said I need to apply for import and export right first before registering the company, the other said I should register the company first then do the filing. I am afraid that wrong order will delay the contract signing; besides, I heard that Shanghai has support policies for newly registered foreign trade companies, but I don't know if I am eligible. I am even more worried about stepping into compliance pitfalls after registration, for example, getting stuck due to incomplete customs declaration documents which will affect delivery and make me lose clients. I am so anxious that I can't sleep now, I want to ask what is the correct step-by-step process and what key details should I pay attention to?
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
First of all，clarify the details of pre-registration document review: Before registration，you need to confirm that the registered address is a commercial address in Shanghai (residential addresses cannot pass the filing，some compliant foreign trade parks can provide collective registered addresses and help access policy benefits). Prepare 3-5 alternative company names in advance to avoid delays caused by duplicate name verification. Meanwhile，sort out the shareholding ratio of shareholders and the business scope (it must explicitly include expressions such as "Import and Export of Goods" and "Import and Export of Technology")，and ensure that documents such as articles of association and shareholder resolutions meet industrial and commercial registration specifications.
Core node connection must strictly follow the sequence of registering the company first then applying for import and export qualification: Step 1，complete industrial and commercial name verification and business license registration，which is the only legal prerequisite for applying for subsequent import and export qualifications (many practitioners mistakenly believe that they should apply for import and export right first before registering the company，which is a typical misunderstanding that will directly lead to the rejection of qualification application)，Step 2，within 10 working days after obtaining the business license，start four core filings simultaneously: import and export operation right filing with the Commerce Bureau，customs registration of import and export goods consignee/consignor，electronic port IC card processing，and name list registration with the State Administration of Foreign Exchange (SAFE). You can submit materials through the "One-stop Online Service" platform to shorten the processing cycle.
Contingency plans for abnormalities need to be prepared in advance: If name verification is rejected，activate the alternative name immediately and adjust the industry expression in the name to reduce the probability of duplicate name，If customs registration is stuck due to non-standard business scope expression，you need to go to the industrial and commercial department in time to modify and supplement the business scope，If foreign exchange name list registration is blocked，prepare explanation materials for the source of shareholders' capital in advance.
Final compliant establishment stage: Complete tax registration and export tax refund filing within 30 days after registration is completed. If you are registered in special regions such as Shanghai Lingang New Area and Waigaoqiao Free Trade Zone，you can submit applications for foreign trade support policies simultaneously，including start-up subsidies，logistics subsidies，etc。to ensure full-link compliance from company registration to operation.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
After completing the registration of an import and export trading company, you need to ensure that the business scope on the Customs Registration Certificate of Consignee/Consignor of Import and Export Goods fully matches the actual commodity categories declared to customs. If you add new categories later, you need to update the business scope with the customs in time, otherwise the customs declaration will be returned, and even trigger customs audit. In addition, you need to complete the initial filing of customs credit rating before the first customs declaration. Preparing a full-time customs declarer in advance or entrusting a compliant customs brokerage can avoid the risk of port detention and customs detention caused by unfamiliarity with declaration procedures. Meanwhile, you should pay attention to the document requirements in the customs valuation link. In the initial stage after registration, you need to establish a standardized document retention system, including purchase contracts, invoices, bills of lading, etc., to ensure that the declared price on the customs declaration is consistent with the actual transaction price and avoid valuation disputes.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
After completing the registration of an import and export trading company, you need to connect with international logistics service providers in advance to build a cargo title control system. Especially when carrying out business for the first time, you need to clarify the compliance requirements for endorsement and transfer of bills of lading, to avoid cargo title loss caused by non-standard endorsement. In addition, you need to select appropriate logistics routes according to the target market. If you are registered in Shanghai, you can give priority to accessing direct shipping resources of Yangshan Port to reduce the risk of container detention charges in transit links. Meanwhile, you need to understand the free storage period policies of different routes in advance. In the initial stage after registration, you can sign a long-term cooperation agreement with logistics service providers to negotiate an extended free storage period and reduce logistics costs. In addition, you need to establish contingency plans for abnormal situations such as container rolling and vessel overbooking, and lock in spare space in advance to avoid order breach caused by logistics delays.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
When registering an import and export trading company, you need to plan the tax structure in advance. If registered in special regions such as Shanghai Lingang New Area, you can enjoy a preferential corporate income tax rate of 15%, so you need to ensure that your business scope meets the requirements of the regional industrial catalog. In addition, you need to complete VAT deferral filing in time after registration. Especially when doing business in the European market, the VAT deferral policy allows you to defer the payment of import VAT and ease cash flow pressure. Meanwhile, you need to establish a pricing system for cross-border related party transactions to avoid triggering transfer pricing investigations by tax authorities due to unreasonable pricing. In addition, in the export tax refund link, you need to ensure the consistency of the "four flows" (contract flow, capital flow, invoice flow and goods flow). In the initial stage after registration, you need to standardize the financial accounting process and prepare all required documents for tax refund in advance.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
After completing the registration of an import and export trading company, you need to complete the name list registration with the State Administration of Foreign Exchange (SAFE) in time, which is a necessary prerequisite for cross-border foreign exchange receipt and payment. Without completing the registration, you cannot conduct cross-border capital settlement through SWIFT or CIPS systems. In addition, you need to establish a compliance review system for cross-border foreign exchange receipt and payment, and retain corresponding documents such as contracts, invoices and bills of lading for each transaction, to avoid settlement rejection caused by incomplete documents. Meanwhile, if you carry out cross-border RMB settlement, you can prioritize using the CIPS system to enjoy faster arrival time and lower handling fees. In addition, you need to pay attention to changes in foreign exchange control policies. In the initial stage after registration, you need to set up a special compliance position for foreign exchange receipt and payment, and adjust operating procedures in time to avoid compliance risks.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
When registering an import and export trading company, you need to clearly define the division of authority for import and export business in the articles of association, to avoid business disputes caused by unclear authority among shareholders. In addition, you need to complete the filing of intellectual property rights customs protection in time after registration. If your products involve self-owned intellectual property rights, this can avoid the risk of customs detention of goods. Meanwhile, when signing the first foreign trade contract, you need to clearly define the scope of the force majeure clause, especially for unexpected events such as epidemics and port strikes, to avoid order breach disputes caused by force majeure. In addition, you need to pay attention to the risk of soft clauses in letters of credit. In the initial stage after registration, you can entrust professionals to review the terms of the letter of credit to avoid the failure to collect payment caused by soft clauses.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
After completing the registration of an import and export trading company, you need to understand the relevant requirements of customs on-site inspection before carrying out business for the first time, especially the compliance of cargo packaging. If the goods involve fragile goods or dangerous goods, you need to prepare qualified packaging certificates in advance. In addition, you need to be familiar with skills for X-ray machine inspection. When packing goods, avoid mixing different categories of goods, especially separate sensitive goods from ordinary goods, to reduce the probability of unpacking inspection triggered by abnormal X-ray results. Meanwhile, if you receive a customs inspection notice, you need to coordinate with on-site inspectors in time and provide accurate cargo information and documents, to avoid inspection delay caused by inconsistent information. In addition, in the initial stage after registration, you need to establish a contingency plan for abnormal inspection results, and prepare relevant materials for inspection and identification in advance to shorten the inspection cycle.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
After completing the registration of an import and export trading company, you need to complete export tax refund filing within 30 days. If you fail to do so within the time limit, you will not be able to enjoy the export tax refund policy. In addition, you need to establish a standardized document filing system, including export goods declaration forms, VAT special invoices, export foreign exchange cancellation certificates, etc. All documents must be retained for more than 5 years to avoid tax refund rejection caused by document loss. Meanwhile, you need to ensure the consistency of the "four flows" (contract flow, capital flow, invoice flow and goods flow). In the initial stage after registration, you need to standardize the capital flow to avoid abnormal situations such as capital return, otherwise it will trigger a tax correspondence investigation. In addition, you need to verify document information in advance during the pre-declaration stage. If inconsistent information is found, adjust it in time to avoid rejection of the formal declaration and affect the tax refund progress.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
When registering an import and export trading company, you need to plan the supply chain structure in advance, and select appropriate trade terms according to the target market. If you do business in the Southeast Asian market, you can prioritize the FOB term to transfer logistics risks. In addition, after registration, you need to establish an inventory linkage strategy. Especially when carrying out import business, you need to adjust the inventory level according to market demand to avoid capital occupation caused by overstock. Meanwhile, you need to establish a cost actuarial model to calculate the full-process cost including procurement cost, logistics cost and tax cost. In the initial stage after registration, you can reduce the overall cost by optimizing the conversion of trade terms. In addition, you need to pay attention to the fluctuations of the global supply chain, reserve alternative suppliers in advance, and avoid order delays caused by supply chain interruption.