Choose the entity
Most foreign investors use a wholly foreign-owned enterprise (WFOE) or a joint venture. Representative offices are limited (no direct revenue). The right structure depends on your business scope, licensing and tax. Check the negative list for restricted/prohibited sectors.
Capital and registration
Registered capital, contribution deadlines and business scope must be drafted carefully. The 2024 Company Law tightened capital contribution rules; do not use an inflated capital figure you cannot fund. Reserve a company name, prepare articles, register with SAMR, then complete bank, tax, customs and foreign-exchange steps.
After incorporation
Open a bank account, register with the tax bureau, set up invoicing (fapiao), handle payroll/social insurance if hiring, and keep accounting records. If you need foreign staff, plan work permits and visas early. Local incentives depend on city/zone.
Reality check
The registered capital is a promise, not a badge; do not inflate it beyond what you can fund.
Local tip: Get the business scope and tax registration right before hiring.
Step by step
- Check the negative list and business scope.
- Choose WFOE/JV and registered address.
- Reserve name and draft articles.
- Register with SAMR and obtain the licence.
- Open bank/tax/customs/forex accounts.
- Set up accounting, invoicing and payroll.
Typical costs
| Item | Cost / note |
|---|---|
| Registration/agent | US$1,000–5,000+ |
| Registered address | Varies by city |
| Accounting | US$100–500/month |
Prices are indicative and change. Confirm with the official provider before paying.
Documents to prepare
- Passport of legal representative
- Company name options
- Articles/scope
- Registered address proof
- Capital contribution plan
Common mistakes
- Choosing the wrong business scope
- Inflated registered capital
- Skipping tax/invoicing setup
- Using an unlicensed address
If things go wrong
- If registration is rejected, ask for the exact defect and fix it in writing.
- If a local agent asks for your passport, use a reputable firm and keep copies.
FAQ
Can I own 100%?
In most non-restricted sectors, yes. Check the negative list for your industry.
Do I need a Chinese partner?
Only in restricted sectors or where a licence requires it. Otherwise a WFOE may be possible.
Business in China: the field guide
Business travel is still travel: visas, payments and logistics come first. The commercial basics are verification, written terms and patience with process.
Visa and status
Meetings and trade fairs usually require an M/F visa; employment requires a Z visa and work permit. Do not work or get paid on a tourist visa. Keep the invitation letter, itinerary and host company details consistent. If you plan to set up a company, check the negative list and registered-capital rules before you commit.
Verify before you pay
Check the supplier’s business licence, factory address and export history. Order paid samples, agree a written spec and inspect before paying the balance. Avoid paying 100% upfront to a personal account. Use traceable bank channels and keep contracts, invoices and inspection reports.
Tax and invoicing
China uses VAT and official fapiao invoices. Fake fapiao is a criminal risk, not a paperwork shortcut. Cross-border payments may attract withholding tax, and related-party transactions need documentation. Use a local accountant before your first invoice or hire.
Quick checks
- Correct visa for the activity
- Supplier licence and factory verified
- Written PO/spec and inspection plan
- Traceable payment channel
- Local accountant/tax registration arranged
Printable checklist
Print this page or save it as a PDF. Tick each item before you go.
- Passport of legal representative
- Company name options
- Articles/scope
- Registered address proof
- Capital contribution plan
- Check the negative list and business scope.
- Choose WFOE/JV and registered address.
- Reserve name and draft articles.
- Register with SAMR and obtain the licence.
- Open bank/tax/customs/forex accounts.
- Set up accounting, invoicing and payroll.
This guide is a practical summary, not an official or legal document. Rules and prices change. Use the official links below, and confirm with the relevant authority or a qualified professional.
Last verified 2026-10-29. China Handbook is independent and not affiliated with any government. Information is provided for general guidance only.