Register and run a company in mainland China

01 · ChinaMNC

Why China, and what to check before you decide

China remains one of the largest consumer and manufacturing markets in the world, and for many founders the question is not whether to enter but how to do it legally and sustainably. A local entity lets you hire staff, invoice customers in renminbi, hold a bank account, import and export, and sign contracts as a Chinese company rather than through a foreign parent or an agent.

Before you commit, test the commercial case. Who is your customer, and will they buy from a foreign-owned entity? Does your product need licences, testing or certification? Where will your team sit, and can you recruit there? What does your supply chain look like?

• Market fit: confirm demand with real buyers, not assumptions.
• Regulatory fit: check whether your sector restricts or encourages foreign investment.
• Operational fit: assess hiring, premises, logistics and payment flows.
• Commitment: incorporation creates ongoing filing and tax obligations, so plan for the long term.

Be wary of anyone promising outcomes. Registration is a process with defined steps, not a guarantee of profit or speed.

02 · ChinaMNC

WFOE, joint venture or representative office

Most foreign founders choose between three structures. Each has different rights and obligations.

• Wholly foreign-owned enterprise (WFOE): a limited liability company owned entirely by foreign persons or entities. It can conduct permitted business activities, employ staff directly, invoice and hold renminbi accounts. It is the most common vehicle for founders who want control and the ability to trade.
• Joint venture (JV): a company shared with a Chinese or foreign partner. A JV can bring local knowledge, licences, distribution or capital, but it also brings shared governance, exit terms and the risk of misaligned incentives. The shareholders' agreement matters as much as the registration.
• Representative office (RO): a liaison presence that cannot earn revenue directly. It suits market research or coordination, not sales. ROs have their own filing and staffing rules.

Your choice depends on activity, sector restrictions, capital, control and exit plans. Note that some sectors restrict or prohibit foreign ownership, and the applicable negative list and local practice should be checked for your specific business. Do not assume a structure that worked elsewhere transfers unchanged. Ask what the entity must be able to do on day one and in three years, then choose accordingly.

03 · ChinaMNC

The five-step registration process

The exact order and requirements vary by city, but a typical sequence looks like this.

• 1. Prepare and check the name: choose a Chinese company name and submit it for approval through the local market regulation system. Names follow local conventions and must not conflict with existing registrations.
• 2. Confirm the registered address and business scope: secure premises that can be used for registration and draft a scope that describes your intended activities accurately.
• 3. Submit incorporation documents: articles of association, shareholder and director information, legalised corporate documents and identity papers, plus the lease and related forms.
• 4. Obtain the business licence and seals: after approval, collect the licence and have the company seals made and registered as required locally.
• 5. Complete post-setup steps: bank account opening, tax registration and reporting setup, and any sector licences. Then put recurring compliance in place.

Each stage depends on the previous one, and document problems are the most common cause of delay. Build a checklist early and verify it with the local authority or your adviser.

04 · ChinaMNC

Documents you will likely be asked for

Requirements differ by city and by entity type, but founders should expect to prepare the following.

• Identity documents: passports for foreign individuals, and certified copies of the corporate documents of any foreign corporate shareholder.
• Notarisation and legalisation: foreign corporate documents and sometimes personal documents must be notarised and legalised, or apostilled where applicable. Confirm the current requirement for your jurisdiction and city.
• Constitutional documents: articles of association, and shareholder or board resolutions authorising the investment and appointing representatives.
• Registered address evidence: a lease or ownership certificate and related landlord documents acceptable to the registration authority.
• Business scope and capital details: a description of activities, the registered capital figure and contribution schedule.
• Appointment documents: legal representative, directors, supervisor and authorised signatory details.

Translations may be required. Keep originals, scans and certified copies organised, and check names and dates for consistency across every document. Small mismatches are a frequent source of back-and-forth. Confirm the current list with the local registration authority before submitting.

05 · ChinaMNC

Registered address, business scope and capital

Three details cause more friction than founders expect.

Registered address. The company must have a registered place of business that the authority accepts. It is not always the same as where you actually work. Some cities allow serviced or virtual arrangements, others require specific documentation from the landlord, and some activities require premises that meet additional conditions. Check before signing a lease, and confirm what the address can be used for.

Business scope. This is the registered description of what the company may do. Write it to match your real activities, including any that require approval. Too narrow and you may be unable to invoice for intended work; too broad and you may attract scrutiny or licensing questions. Some activities need pre-approval or a separate licence before they can be carried out.

Registered capital. This is the amount shareholders commit to contribute. It is not simply a formality: it signals commitment, affects liability, and comes with a contribution schedule. Set it against a realistic operating plan rather than a headline figure. Understand whether your sector or city sets minimums. Changes later are possible but involve filings. Get these three right at the start and much of the rest is easier.

06 · ChinaMNC

Banking, tax and visas after incorporation

Once the licence is issued, the operational work begins.

Banking. Open a renminbi basic account and any additional accounts you need. Banks apply their own onboarding and due diligence, and may ask for documents about your business, shareholders and expected transactions. Prepare a clear explanation of what the company does and where money will come from and go. Foreign exchange handling has its own rules, so ask the bank how inbound capital and outbound payments will be processed.

Tax. Register with the tax authority, determine the taxes that apply to your activities, and set up invoicing and bookkeeping. China has several tax categories, including corporate income tax, value-added tax and withholding obligations. Filing is periodic, and penalties for missed deadlines exist. Many founders engage a local accounting firm from the start rather than reconstructing records later.

Visas and work permits. Foreign staff generally need a work permit and a residence permit to work legally. The process is tied to the employer and the role, and requires supporting documents. Do not assume a business visa allows you to work. Check current requirements for your nationality and position, and allow time for processing before staff relocate.

07 · ChinaMNC

Common mistakes to avoid

Most problems are avoidable with preparation.

• Choosing the address in a hurry: signing a lease that the authority will not accept, or that does not fit your licensed activity.
• Copying a business scope: registering activities you do not do, or omitting ones you need, which complicates invoicing and licensing.
• Setting capital as a headline number: committing to more than you can contribute on schedule, or too little to support the business.
• Ignoring document consistency: names, dates and translations that do not match across papers.
• Treating compliance as optional: missed tax filings, annual reporting or licence renewals create real risk.
• Assuming banking is automatic: arriving without a clear explanation of your business and expected flows.
• Working without permits: foreign staff working on the wrong visa status.
• Skipping local advice: relying on generic guides when city practice and sector rules differ.

None of these are exotic. They are ordinary planning failures. A short checklist, a local adviser and realistic timelines prevent most of them. Confirm current rules with authorities before acting.