Classification of Chemicals
According to China’s Catalog of Hazardous Chemicals and the UN GHS Standard issued by the United Nations Economic Commission for Europe, chemicals can be classified into two categories: General Chemicals and Hazardous Chemicals, subject to different management rules and business licensing:
General Chemicals: Chemicals not listed in the Catalog of Hazardous Chemicals and not meeting GHS hazard classification criteria. No mandatory licensing required, but must comply with basic product quality and environmental regulations.
- Common products: Daily chemicals, industrial additives, basic chemical raw materials, mineral products, metal materials, polymers
Hazardous Chemicals: Chemicals with physical hazards, health hazards, or environmental hazards that require mandatory licensing.
- Common products: Flammable liquids, flammable solids, corrosive substances, toxic substances, oxidizers and peroxides, explosives, certain gases, environmentally hazardous substances
Chemical Operation Qualification Requirements
General requirements for all chemical business enterprises:
- Hold a Business License with business scope explicitly including "chemical product operations" or similar items.
General Chemical Operations (Non-Hazardous):
- Licensing requirement: No Hazardous Chemicals Business License required.
- Product requirement: Products must comply with Product Quality Law and related standards (no mandatory license but quality must be guaranteed).
Hazardous Chemical Operations:
- Core license: Mandatory application for Hazardous Chemicals Business License from municipal/district Emergency Management Bureau.
- Enterprise requirement: Business scope on Business License copy must include "hazardous chemical operations" and similar items.
- Enterprise registered capital usually needs to be ≥ statutory minimum limit (commonly RMB 1 million, subject to local regulations).
- Premises requirement: Business premises and storage facilities must comply with national safety standards (e.g., GB 50016 Code for Fire Protection Design of Buildings).
- Personnel requirement: Enterprise principal responsible persons and full-time safety management personnel must hold valid safety training qualification certificates.
How to Establish a Chemical Business Company
Step One: Company Setup
Before starting the company registration process, you first need to determine the business scope and chemical types, and clarify the main products. This will determine your company’s business scope and required registered address location (e.g., hazardous chemical production can only be in government-approved specific production zones):
- Does it involve hazardous chemicals (e.g., solvents, acids, flammables)?
- Does it involve chemical import/export?
After determining basic company information, Hongda will handle all steps for company setup (for foreign investors, WFOE is usually the best choice), including subsequent tax registration.
Step Two: Bank Account Opening
After completing company registration, you need to apply for a corporate bank account for daily operations (click our Bank Account Opening Service Page to learn more). WFOEs typically apply for the following account types:
- Basic Account: Enterprise’s main settlement account for daily RMB receipts/payments (e.g., collections/payments, tax payments, payroll, social security contributions).
- Foreign Capital Account: Dedicated to receiving investment funds remitted by overseas shareholders. Funds can be transferred to the basic account after settlement. (According to the latest Company Law, registered capital must be fully paid within 5 years after company establishment. Details in our previous blog).
Step Three: Hazardous Chemicals Business License Application (General chemical operators do not need to apply)
Applying for a hazardous chemicals business license generally requires the following materials:
- Business License copy + Company seal registration certificate
- Business premises property/lease certificate + Fire acceptance qualification document
- Safety assessment report
- Emergency response plan (with drill records) and filing receipt
- Safety management system catalog (covering full chain: procurement, sales, storage, transportation)
- Hazardous chemical traceability system purchase contract (must have inbound/outbound registration and electronic ledger functions)
Upon successful approval, you will receive the Hazardous Chemicals Business License, valid for 3 years. Renewal must be applied for 3 months before expiry.
Step Four: Import/Export Rights Application (If involving import/export business)
If the company involves chemical import/export, it must apply for import/export rights after obtaining the Business License, mainly including:
- Customs Registration: Submit core product information to local customs and complete registration according to customs regulations to obtain a unique Customs Registration Code (CR code).
- Apply for Electronic Port IC Card: An intelligent authentication tool for data sharing, e-signature, and identity verification on China’s Electronic Port platform.
- Foreign Exchange Registration: Registration with local Foreign Exchange Administration Bureau is required to legally conduct cross-border fund settlement per China’s foreign exchange control policies.
