For foreign founders entering mainland China
This page is written in English for founders who are new to mainland China. It walks through the decisions that matter before you file anything: which entity fits your plans, what the registration steps look like, which documents you will be asked for, and how banking, tax and visas fit together. We describe the general framework only. Rules differ by city and by industry, and they change, so treat this as a map of the questions to ask rather than a substitute for local advice.
01 · ChinaMNC
Founders usually look at mainland China for one of three reasons: they want to sell into a large domestic market, they want to sit closer to manufacturing and supply partners, or they want a local team that can handle customers, suppliers and after-sales in the same time zone.
Each reason points to a different setup. A sales push may need a local invoicing entity and a bank account. A sourcing operation may need staff on the ground and the ability to sign contracts locally. A service business may need to employ people directly rather than work through agents.
Before committing, be clear about what you actually need in year one. Many founders overbuild early. A smaller, correctly scoped entity that can grow is often wiser than a large structure built on assumptions. Also check whether your sector has foreign investment restrictions or requires extra approvals, because that shapes everything downstream.
02 · ChinaMNC
Three structures come up most often. A wholly foreign-owned enterprise (WFOE) is owned entirely by the foreign parent. It can generally conduct approved business activities, sign contracts, invoice and hire staff, subject to its registered scope and any sector rules.
A joint venture (JV) involves a Chinese partner, or sometimes more than one. Founders choose a JV when a local partner brings licences, land, distribution or relationships they cannot easily build alone. The trade-off is governance: decision rights, capital contributions, profit sharing and exit terms need to be written carefully, because a JV ties your fortunes to another party.
A representative office (RO) is the lightest option. It is typically limited to liaison, market research and coordination, and generally cannot earn revenue directly. It suits a team testing the market before committing to a full entity.
Choose based on activities, not on cost alone.
03 · ChinaMNC
The sequence below is the common shape of a China company setup. Details and ordering vary by city, and some steps depend on your industry.
Build slack into your plan. Document legalisation, translation and bank onboarding often take longer than founders expect, and public timelines should be treated as indicative rather than guaranteed.
04 · ChinaMNC
Requirements differ by city and entity type, so confirm the current list with your local adviser before you start gathering papers. The items below are the usual core.
Two practical points save time. First, make sure names and addresses match exactly across every document; small mismatches cause rejections. Second, keep a single master file of your corporate documents, because banks, tax offices and licensing bodies may each ask for versions of the same papers.
05 · ChinaMNC
Two filings trip up founders more than any others: the registered address and the business scope.
Registered address. Your company must have a registered place of business, and the evidence must satisfy the local authority. Some cities allow serviced or shared office arrangements; others are stricter about the premises and may inspect them. The address also affects tax jurisdiction and which local office handles your file. Do not treat it as a formality: a lease that the authority will not accept can stall the whole application, and a mismatch between your registered address and where you actually operate can cause problems later.
Business scope. This is the written description of what your company may do. It should be broad enough to cover your real activities but specific enough to be accepted. Some activities sit behind additional permits, and some are restricted or prohibited for foreign investors. Check the current negative list for your sector and city.
Get these two right and later changes become simpler.
06 · ChinaMNC
These three areas are often handled separately, but they affect each other, so plan them together.
Banking. You will need a corporate renminbi account, and usually a foreign currency account for cross-border payments. Banks apply their own onboarding checks, which can involve documents about the parent company, the beneficial owners and the nature of your business. Expect questions about expected transaction flows. Capital contributions and repatriation must follow foreign exchange rules and your filed charter.
Tax. Register with the tax authority after the business licence is issued, and set up invoicing and bookkeeping from day one. Corporate income tax, value-added tax and withholding on cross-border payments are the usual starting points, but the treatment depends on your activities and any applicable treaty. Engage a qualified local accountant rather than relying on general summaries.
Visas. Foreign staff generally need a work permit and a corresponding residence permit, and the employer must be properly registered to hire foreign nationals. Founders sometimes use a business visa while setting up, but that is not a substitute for the correct permit once you are working. Rules and eligibility criteria change, so confirm the current process with the local authorities or a qualified adviser before making commitments.
07 · ChinaMNC
Most setbacks come from planning, not paperwork. These are the patterns we see most often.
None of these are unusual. The point is to ask the questions early, while changes are still cheap.
FAQ
In many sectors, yes: a wholly foreign-owned enterprise is owned entirely by the foreign investor. However, foreign investment rules restrict or prohibit foreign ownership in some industries, and certain activities require additional approvals. Check the current negative list and city-level practice for your specific business before you commit.
There is no reliable single answer. Timelines depend on the city, the entity type, whether your sector needs extra approvals, and how quickly documents can be legalised, translated and accepted. Banks and licensing bodies add their own processing time. Ask your local adviser for a realistic range for your case, and plan with slack rather than assuming a fixed schedule.
You need a registered address that the local authority accepts as evidence. Some cities permit serviced or shared office arrangements, while others are stricter and may inspect the premises. The right answer depends on your city and activity, so confirm what evidence is accepted before signing a lease.
A WFOE is owned entirely by the foreign investor and gives you full control, subject to its approved business scope. A joint venture involves a Chinese partner and can bring licences, distribution or relationships you could not easily build alone, but you share governance and economics. Choose based on what your business needs, not on cost alone.
Many foreign-owned companies appoint a legal representative and local staff, and some founders manage remotely for periods. In practice, day-to-day operations, banking, tax filing and hiring usually need someone on the ground, and anyone working in China needs the appropriate permit. How much you can run remotely depends on your activity and structure, so take local advice.
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This page provides general information only and is not legal, tax or investment advice. Rules vary by city and industry and change over time. Confirm current requirements with qualified local advisers before acting.