Register and run a company in mainland China

01 · ChinaMNC

Why mainland China

Mainland China remains one of the largest consumer and manufacturing markets in the world, and many foreign founders want a local legal entity so they can invoice customers, hire staff, hold a lease and operate bank accounts in renminbi. A local company can also make it easier to work with Chinese suppliers, distributors and platforms that prefer or require a domestic counterparty.

At the same time, the market rewards preparation. Registration is administratively straightforward in many cities, but the surrounding work — choosing the right entity, defining business scope, securing a compliant address, opening bank accounts and setting up tax reporting — is where plans succeed or stall. Foreign investment is generally permitted in most sectors, but restrictions and special requirements apply in some industries, and some activities require pre-approval.

Practical factors also matter: where you register affects tax administration, hiring, banking and access to incentives. Founders should treat city selection as a business decision, not an afterthought, and should budget time for notarisation, translation and bank compliance checks before assuming a company can start trading.

02 · ChinaMNC

WFOE, joint venture or representative office

The three structures foreign founders most often consider are the wholly foreign-owned enterprise (WFOE), the joint venture (JV) and the representative office (RO). Each fits a different purpose, and choosing the wrong one is costly to unwind.

• WFOE: a wholly foreign-owned limited liability company. It can conduct permitted business activities, invoice customers, hire employees and hold assets. It suits founders who want control and a full operating presence.
• Joint venture: a company shared with one or more Chinese or foreign partners. A JV can bring local market access, licences or relationships, but it requires careful shareholder agreements, governance rules and exit provisions.
• Representative office: a liaison office that cannot earn revenue directly. It suits market research, supplier liaison and coordination, not sales or service delivery.

Some activities are restricted or require specific approvals, and negative lists and sector rules change. Before deciding, confirm your intended business activities are open to foreign investment and check whether licensing applies. Your choice also affects capital, tax, hiring and banking, so match the structure to your actual revenue model rather than to convenience.

03 · ChinaMNC

The five-step registration process

Registration in most cities follows a similar sequence, though local requirements and review times differ. Treat the steps below as a planning framework rather than a fixed timetable.

• Step 1 — Feasibility and structure: confirm the activity is open to foreign investment, choose the entity type and city, and decide on shareholders, registered capital and legal representative.
• Step 2 — Name and address: reserve a company name and secure a compliant registered address with the documentation the local authority expects.
• Step 3 — Documents and filing: prepare the articles of association, shareholder and director information, and translated corporate papers, then submit the establishment filing.
• Step 4 — Licences and registrations: obtain the business licence and any sector-specific permits, then complete tax, customs and other registrations that apply to your activities.
• Step 5 — Banking and go-live: open corporate bank accounts, set up bookkeeping and invoicing, register employment and social insurance arrangements, and arrange work and residence permits for foreign staff.

Each stage can generate follow-up questions. Founders who prepare notarised documents and a clear description of business activities early usually avoid repeated submissions.

04 · ChinaMNC

Documents you will be asked for

Document requirements vary by city and authority, but foreign founders should expect to provide a core set of corporate and personal papers. Preparing them early is one of the most effective ways to reduce delays.

• Investor documents: certificate of incorporation or equivalent registration for the foreign parent, plus constitutional documents where requested.
• Notarisation and legalisation: foreign corporate documents are commonly notarised and legalised, or apostilled where applicable, before use in China. Confirm the current accepted route for your jurisdiction.
• Translations: Chinese translations of foreign-language documents, often prepared by an accepted translation provider.
• Identity documents: passports or other identification for shareholders, directors, the legal representative and supervisor.
• Address evidence: lease or property documents for the registered address, meeting local requirements.
• Governance papers: articles of association, shareholder resolutions and appointment documents.
• Capital and banking information: details of registered capital and the proposed bank arrangements.

Names, signatures and dates should be consistent across all documents. Small mismatches between a passport, a notarised certificate and a filing form are a common cause of resubmission, so review the full set before submission.

05 · ChinaMNC

Registered address and business scope

Two details that founders often underestimate are the registered address and the business scope. Both appear technical but shape what the company can legally do and how easily it can bank, hire and trade.

The registered address must be a real, compliant location accepted by the local registration authority. It is not merely a mailing address. Depending on the city and property, you may need a lease, property ownership documents, landlord consent or a filing through an authorised address provider. Some cities accept serviced or virtual-style arrangements for certain activities, while others require physical office space. Verify the rules for your specific district and industry before signing a lease.

Business scope describes the activities the company may conduct. It should be drafted to cover your actual revenue model, including near-term additions, using the standard wording local authorities recognise. Activities that require licences must be handled separately. An overly narrow scope can block invoicing or contracts, while an inaccurate one can create compliance problems. Review the scope with your accountant and, where relevant, with the licensing authority before filing, and plan to amend it later if your business changes.

06 · ChinaMNC

Banking, tax and visas

Once the company is registered, operational setup begins. Banking, tax and immigration are separate workstreams that often run in parallel, and each has its own documentation and compliance expectations.

Banking. Corporate renminbi and foreign currency accounts are opened with a bank after registration. Banks conduct their own due diligence on shareholders, beneficial owners, business activities and expected transaction flows. Prepare clear explanations of your business model, counterparties and source of funds. Opening accounts can take longer than founders expect, so plan cash flow accordingly.

Tax. Companies must register with the tax authority, maintain books and records, issue invoices in line with local rules, and file periodic tax returns. Value-added tax, corporate income tax and withholding obligations may apply depending on your activities. Engage a qualified accountant or bookkeeping provider from the start; retroactive clean-up is expensive.

Visas. Foreign employees generally need a work permit and a residence permit to work legally in China. The process typically involves an employer-sponsored application, educational and professional documents, and a medical check. Short-term business visas do not authorise local employment. Rules differ by city and by the employee's circumstances, so confirm requirements with the local authorities or a qualified immigration adviser.

07 · ChinaMNC

Common mistakes to avoid

Many registration problems are predictable. Founders who plan for these issues usually move faster and with less friction.

• Choosing the entity before the business model. A representative office cannot invoice customers, and a WFOE is not automatically licensed for regulated activities. Match structure to revenue.
• Ignoring foreign investment restrictions. Check whether your activity is permitted, restricted or requires approval before committing to a lease or a name.
• Underestimating document formalities. Notarisation, legalisation or apostille, and translation take time. Inconsistent names or signatures cause resubmission.
• Treating the registered address as a formality. Non-compliant addresses can block registration, banking or later inspections.
• Writing a vague or overly narrow business scope. This can prevent invoicing or require early amendment.
• Assuming a bank account opens automatically. Banks apply their own compliance review, and this can take time.
• Delaying accounting and tax setup. Filing obligations begin early, and missed filings create penalties and clean-up work.
• Overlooking work permits. Foreign staff cannot rely on business visas for ongoing local work.

None of these issues is unusual. The remedy is preparation: confirm requirements for your city and sector, keep documents consistent, and involve qualified local advisers before signing commitments.