Set up and run your company in mainland China

01 · ChinaMNC

Why founders look at mainland China

Founders usually consider mainland China for a combination of market access, supply-chain depth and proximity to customers and partners. If your buyers, suppliers or manufacturing partners are already there, having a locally registered entity can make contracts, hiring, invoicing and day-to-day coordination more straightforward than working entirely from abroad.

At the same time, China is not a single market. Rules, incentives and practical procedures differ between cities and provinces, and they change. A structure that fits a software company selling to local businesses may be a poor fit for a company that needs import and export licences.

• Customers: local entities can be easier for Chinese clients to contract with and pay.
• Talent: a registered entity is normally needed to hire staff locally and enrol them in social insurance.
• Supply chain: proximity helps if you source, inspect or coordinate production.
• Commitment: registration brings ongoing compliance, reporting and cost obligations.

Start from your commercial goal, then choose the entity and city that support it.

02 · ChinaMNC

WFOE, joint venture or representative office

The three structures most often discussed by foreign founders are the wholly foreign-owned enterprise (WFOE), the joint venture (JV) and the representative office (RO). Each carries different permissions, costs and compliance duties.

• WFOE: wholly owned by the foreign investor. It can generally conduct the business activities listed in its approved scope, and it is the usual choice for companies that want to invoice, hire and operate independently.
• JV: a company shared with one or more Chinese or foreign partners. It can open doors to local licences, networks or capital, but control, governance and exit terms need careful drafting before you sign.
• RO: a representative office is limited to liaison and market research activities. It cannot normally earn revenue directly, which makes it suitable for exploration rather than full operations.

There is no universally correct choice. The right answer depends on your activity, your need for licences, how much control you want and your appetite for ongoing compliance. Get advice on your specific case before committing.

03 · ChinaMNC

The registration process in five steps

The exact sequence varies by city and by industry, but most registrations follow a recognisable path. Expect several weeks to several months depending on approvals and how complete your paperwork is.

• 1. Feasibility and structure: define the business activity, choose the entity type and select a city. Check whether your activity needs a pre-approval or a specific licence.
• 2. Name and scope: reserve a company name and draft the business scope. The scope should describe what you will actually do, because it affects licences, tax and banking.
• 3. Documents and filing: prepare the investor documents, articles of association and registration forms, then file with the market regulation authority.
• 4. Licence and seals: once the business licence is issued, arrange the company seals and complete the follow-on registrations.
• 5. Banking, tax and people: open the bank account, complete tax registration, and arrange work permits and visas for foreign staff.

Keep a single, current checklist and confirm each step with the local authority or your adviser.

04 · ChinaMNC

Documents founders usually need

The document list depends on the entity type, the investor's home jurisdiction and the city. The points below describe what is commonly requested, not an exhaustive list.

• Investor documents: certificate of incorporation or equivalent, constitutional documents, and proof of the legal representative's identity.
• Notarisation and legalisation: foreign documents often need notarisation and consular legalisation, or an apostille where applicable. Rules differ by country, so check before you start.
• Translations: Chinese translations are commonly required; some cities ask for translation by an approved agency.
• Company documents: proposed name, registered address proof, articles of association, business scope and capital details.
• People: details of the legal representative, supervisors, executives and, where relevant, the foreign staff who will need work permits.

Missing or inconsistent documents are a common cause of delay. Prepare originals early and keep copies consistent across every filing.

05 · ChinaMNC

Registered address and business scope

Two details cause more friction than almost any others: the registered address and the business scope.

The registered address is the official location of the company. Some cities accept serviced or virtual office arrangements for certain activities, while others require a physical premises suited to the business. Landlords usually need to provide ownership or lease documents that satisfy the registration authority. Check the address requirement for your specific activity before signing a lease.

The business scope lists the activities the company may carry out. It should match what you actually plan to do, because it affects licensing, invoicing and tax treatment. Some activities require a permit before or after registration; others are restricted or need special approval. Adding activities later is possible but takes time.

• Match the scope to real revenue activities, not aspirational ones.
• Confirm whether your activity needs a pre-approval or a post-registration licence.
• Keep the address documents valid for the whole registration period.

06 · ChinaMNC

Banking, tax and visas after registration

Once the business licence is issued, the operational work begins. These areas usually need attention in the first weeks.

• Bank account: open the corporate RMB account and, if needed, a foreign-currency account. Banks apply their own onboarding and due-diligence checks, so expect questions about ownership, business activity and expected flows.
• Tax registration: complete tax registration, confirm the taxpayer status that applies to you, and understand invoicing (fapiao) requirements before you issue your first invoice.
• Accounting: bookkeeping and periodic filings are ongoing obligations. Many founders engage a local accounting firm.
• Visas and work permits: foreign staff generally need a work permit and a residence permit to work legally. The process involves the employer and local authorities.

Requirements differ by city and change over time. Confirm current practice with the bank, the tax authority and the immigration authorities, or with qualified advisers, rather than relying on older guides.

07 · ChinaMNC

Common mistakes to avoid

Most problems we see described by founders come from planning gaps rather than from the registration itself.

• Choosing the entity before the activity: decide what you will actually do, then pick the structure that permits it.
• Ignoring licensing: some activities cannot start with a business licence alone.
• Underestimating documents: notarisation, legalisation and translation take time and must be consistent.
• Weak JV terms: governance, deadlock, transfer and exit provisions need drafting before signing.
• Treating registration as the finish line: tax filings, accounting, annual reporting and visa renewals are ongoing.
• Assuming one city equals another: procedures and timelines vary locally.

Build a realistic budget for professional fees, compliance and staff costs. Ask questions early, keep written records, and verify requirements with the relevant authorities or qualified advisers before making commitments.