What to Ask in Your First Consultation with a Company Formation Service
Author: Junanda ConsultingReviewed by: Junanda Service Team2026-09-19
The first time an owner calls a service provider, they often do not know where to start, so they listen to whatever they are told and only after signing discover that some steps are charged separately or that a requirement was never mentioned. A consultation is not about hearing a proposal; it is about bringing the other side's information up to your own level of understanding. This article gives a question list in four groups; asked in order, they establish the entity type, the boundaries of the fee and the division of responsibility.
Group One: Set Out Your Own Situation First
These questions are for you to answer. The more specific your answers, the more reliable the proposal will be.
| No. |
Point to cover |
Why it matters |
| 1 |
What the business does, and which products or services it sells |
Determines the entity type, industry scope and whether a licence is needed |
| 2 |
Who the customers are, companies or individuals |
Determines invoicing needs and input credit requirements |
| 3 |
Whether invoices are needed, of what type, and roughly how often |
Affects the recommendation on taxpayer status and the bookkeeping scope |
| 4 |
Whether there are employees, and whether social insurance will be paid |
Affects people costs and the social insurance account arrangements |
| 5 |
Whether cross-border business is involved (import and export, overseas receipts, foreign shareholders) |
Affects filings and foreign exchange and tax arrangements |
| 6 |
Whether an industry licence or qualification is required (food, medical, education, labour dispatch and so on) |
Determines whether prior approval is needed before registration |
| 7 |
Whether premises exist, and whether they are owned, leased or a park address |
Affects the registered address solution and compliance risk |
| 8 |
Expected annual revenue, and whether there are multiple shareholders |
Affects the taxpayer status recommendation and the equity design |
| 9 |
Whether you own other companies or act as legal representative elsewhere |
Affects restrictions on holding office and related-party treatment |
| 10 |
When you want to start trading, and whether there is a deadline |
Affects the pace of work and whether expedited handling is needed |
Send these answers in writing rather than describing them piecemeal on the phone: it is more efficient and easier to check the contract against later.
Group Two: Solutions and Professional Judgement
- Which entity type do you recommend (limited liability company, sole proprietorship, partnership), why, and how do the tax and liability positions differ?
- Why this region or this park? What does it affect in invoicing, tax, fiscal support and later changes?
- How is the registered address handled, and on what legal basis?
- How exactly should the business scope be worded? Will it affect my invoice categories, filings for qualifications or access to reliefs?
- How much registered capital should be entered, on what basis, must it be paid up, and how should the subscription period be arranged?
- How should the shareholder structure be designed — contribution ratios, articles of association, and which matters need special terms?
- If I have several business directions, one company or separate entities? What are the pros and cons of each?
- How many steps are there, in what order, and which require me to attend in person or verify my identity?
- What compliance risks do you see for a business like mine, and which can be avoided in advance?
If the other side cannot answer the "why" and only repeats "this is how everyone does it", that is a warning sign.
Group Three: Fees — Ask About Scope, Not Amounts
Do not ask only for a total. Work through the included and excluded items one by one, and ask for them to be written into the contract.
- Which services does the quotation cover? List them item by item (name search, licence, seal making, tax registration, help with bank account opening and so on).
- Which items are charged separately — seal making, bank account opening, address renewal, expedited handling, licence or qualification work?
- How is the registered address charged, annually or for the registration term? What is the renewal price, and what happens if it is not renewed?
- Does the registered capital have to be paid up? If so, how are the verification or funding arrangements and their costs calculated?
- Is bookkeeping bundled with the formation service? If I do not use your bookkeeping, does the quotation change? On what basis is the bookkeeping fee quoted (document volume, industry, whether the annual report is included), as quoted by the service provider?
- How are later changes charged — name, address, business scope, shareholders, registered capital — by item or by occurrence?
- How is deregistration charged, which steps does it include, and does it cover tax clearance and public notice?
- Is the quotation tax-inclusive? Will an invoice be issued, of what type, and when?
- What is the payment schedule — deposit and balance proportions, milestones, and the circumstances in which a refund is possible?
- If a policy change adds a step during the process, how is the cost handled?
On amounts, providers quote on widely different bases, so rely on the provider's written quotation rather than verbal assurances.
Group Four: Delivery and Responsibility
- How long does the process take, from when is the period counted, and how is the time distributed?
- Who submits the materials, and how many times must I attend in person?
- If materials are rejected or need correction, who handles it, is there an extra charge, and how is the time counted?
- How are the certificates, seals, account numbers and passwords I provide kept, and is there a register of their use?
- What is handed over at the end (business licence, seals, articles of association, tax passwords), how is it delivered, and how is receipt confirmed?
- What response time is agreed for follow-up service, who do I ask day-to-day questions, through which channel, and how quickly?
- Who advises on accounting and tax matters, and can I deal directly with the person responsible?
- If a loss arises from your side's actions, how is liability borne?
The Consultation Question List
| Group |
No. |
Question |
Answer recorded |
In the contract |
| Own situation |
1 |
Business type, products and services |
|
— |
| Own situation |
2 |
Customers and invoicing needs |
|
— |
| Own situation |
3 |
Cross-border business and licences |
|
— |
| Own situation |
4 |
Employees and social insurance |
|
— |
| Own situation |
5 |
Premises and timing |
|
— |
| Solution |
6 |
Recommended entity type and reason |
|
|
| Solution |
7 |
Registration region and reason |
|
|
| Solution |
8 |
Registered address solution and legality |
|
|
| Solution |
9 |
Business scope wording and reason |
|
|
| Solution |
10 |
Registered capital and subscription |
|
|
| Solution |
11 |
Equity and special provisions |
|
|
| Solution |
12 |
Process and attendance |
|
|
| Fee |
13 |
Items included in the quotation |
|
|
| Fee |
14 |
Separately charged items |
|
|
| Fee |
15 |
Address renewal method and price basis |
|
|
| Fee |
16 |
Bookkeeping quotation basis and bundling |
|
|
| Fee |
17 |
Charges for changes and deregistration |
|
|
| Fee |
18 |
Payment schedule and refunds |
|
|
| Delivery |
19 |
Duration and milestones |
|
|
| Delivery |
20 |
Rejected materials: responsibility and cost |
|
|
| Delivery |
21 |
Safekeeping and handover list |
|
|
| Delivery |
22 |
Follow-up response time |
|
|
| Delivery |
23 |
Breach liability and dispute resolution |
|
|
How to Spot an Unreliable Service Provider
- Promising "guaranteed approval": approval carries objective uncertainty, so an absolute promise deserves scepticism.
- Refusing an itemised quotation: quoting only a total and staying vague about what is included, usually followed by add-ons.
- Avoiding discussion of risk: changing the subject when asked about subscription liability, address compliance or deregistration.
- Demanding a large advance payment: pressing for payment with "locking in a place" and without written refund conditions.
- No formal contract: only a receipt or verbal agreement, with no written basis for the service, timeline or responsibility.
- Forcing a bundle: not allowing you to choose your own bookkeeping provider or to change provider mid-engagement.
- Opaque handling of materials: unwilling to explain how certificates and passwords are kept and their use recorded.
- A vague contact person: unable to say who is responsible, and unwilling to leave a traceable communication record.
Three Things to Do After the Consultation
Do not sign immediately. First, send the key answers back in writing for confirmation, creating a written record. Second, compare two or three providers, focusing on what is included rather than only the total. Third, write the agreed points into the contract one by one: the service list, included and separately charged items, the timeline, the safekeeping of materials, breach liability and refund conditions.
Common Pitfalls
- Asking only for the total and not what it includes, assuming a lower quotation means cheaper.
- Letting the other side propose a solution without explaining your business, so the proposal misses your actual needs.
- Overlooking the renewal and legality of the registered address, and later being listed as abnormal because of an address problem.
- Accepting a bundle of formation and bookkeeping services, then struggling to transfer materials and passwords when you want to change provider.
- Not asking for a contract, or accepting one with no service list or liability terms, leaving no basis if a dispute arises.
This article is general business information prepared by Junanda Consulting. Specific policy positions, tax rates, deadlines and procedural requirements are subject to the latest official versions issued by the competent authorities. To understand how these requirements apply to your business, please contact Junanda Consulting for further information and support.
