Start and run your company in mainland China

01 · ChinaMNC

Why China

China is a large and competitive market. For many foreign founders the attraction is proximity to suppliers, customers and talent in one of the world's biggest economies. A local company can make it easier to hire staff, invoice customers, sign leases and hold intellectual property. It can also signal long-term commitment to partners and clients.

But China is not a single market. Consumer behavior, regulations and business culture differ between cities and provinces. Success usually depends on a clear product, a realistic understanding of local competition and a compliant operating structure. Founders who treat registration as a checkbox often struggle later with banking, tax or licensing.

This page helps you think in the right order: choose an entity, prepare documents, complete registration, then set up banking, tax and visas. It does not replace advice from a licensed professional who knows your sector and city.

02 · ChinaMNC

WFOE, joint venture or representative office

Most foreign founders consider three structures. A wholly foreign-owned enterprise (WFOE) is a limited liability company owned entirely by foreign investors. It can conduct approved business activities, hire staff and invoice customers. It usually requires a registered address, business scope, registered capital and a legal representative.

A joint venture (JV) involves a Chinese partner. It can help with market access, local relationships and licensing in restricted sectors. The trade-off is shared control, governance complexity and the need for a strong shareholders' agreement. A representative office (RO) is the lightest option. It cannot engage in direct profit-making activities; it is typically used for market research, liaison and quality control.

The right choice depends on your sector, whether foreign ownership is restricted, how much control you want and how soon you need to invoice. Confirm sector-specific rules before deciding.

03 · ChinaMNC

The five-step process

Step 1 — Plan and confirm eligibility. Define your business activities, city, ownership structure and budget. Check whether your sector has foreign investment restrictions or requires a special license.

Step 2 — Prepare documents. Typical items include passport copies of directors and legal representative, proof of address, draft articles of association, business scope, registered capital details and investor documents. Some documents may need notarization or legalization.

Step 3 — Register the company. File with the local market regulation authority (often called AMR) and obtain the business license. You may also need seals, a bank account and tax registration.

Step 4 — Complete post-setup filings. Register with tax, open a corporate bank account, set up social insurance and handle foreign exchange registration where applicable.

Step 5 — Start operations. Hire staff, sign leases, obtain any sector licenses and build a compliance calendar. Timelines vary by city and sector; do not rely on fixed promises.

04 · ChinaMNC

Documents you will likely need

Document lists vary by city, entity type and business activity. Common items include:

• Passport copies of foreign directors, supervisors and the legal representative.
• Proof of address for the registered office (lease or property documents).
• Draft articles of association and a shareholders' agreement if applicable.
• Business scope wording that matches your planned activities.
• Registered capital amount, currency and contribution schedule.
• Investor documents: certificate of incorporation, good standing certificate or equivalent.
• Notarization and legalization or apostille where required.
• Appointment documents and power of attorney for local filings.

Some cities require original documents, translations or in-person attendance. Keep digital and physical copies, and check validity dates. Missing or inconsistent documents are a common cause of delay.

05 · ChinaMNC

Registered address and business scope

Your registered address is where the company is legally located. It must be a real, verifiable address that the local authority accepts. Many founders use a serviced office or incubator address; confirm that the provider supports company registration and that the lease meets local requirements. A virtual address alone may not be accepted.

Business scope defines what activities your company may conduct. Write it clearly and in the format local authorities expect. Include your core activities and any planned secondary activities, but avoid vague or overly broad wording that may trigger extra scrutiny. Some activities require a pre-approval or a post-registration license.

If you plan to change address or expand scope later, expect a formal amendment process. Choose an address and scope that fit your first two years of operation, and get professional review before filing.

06 · ChinaMNC

Banking, tax and visas

After registration, open a corporate bank account. Banks vary in their requirements, and some may ask for business proof, lease documents, beneficial ownership information and explanations of expected transactions. Prepare a clear business plan and be ready for enhanced due diligence. Banking can take longer than founders expect.

Register with the tax authority and understand your filing obligations. China's tax system includes corporate income tax, value-added tax and other levies depending on activity. Many small companies use a bookkeeping agent; choose one with experience in foreign-invested enterprises. Keep invoices, contracts and bank records organized.

For foreign staff, work permits and residence permits are typically required. The process usually involves a work permit notice, a Z visa, then a work permit and residence permit after entry. Requirements depend on qualifications and city. Plan visas early, as they affect hiring and travel.

07 · ChinaMNC

Common mistakes to avoid

Founders often underestimate the operational side of China registration. Common mistakes include:

• Choosing the wrong entity. A representative office cannot invoice; a WFOE may be unnecessary for pure market research.
• Weak business scope. Vague wording can block licenses or banking.
• Ignoring sector restrictions. Some activities require special permits or limit foreign ownership.
• Unrealistic address arrangements. Not every address is accepted for registration.
• Underestimating banking due diligence. Banks may ask detailed questions about your business.
• Missing tax deadlines. Late filings can lead to penalties.
• Informal employment. Use proper contracts and social insurance where required.

Get local professional advice before signing leases, hiring or transferring money. A small upfront review can prevent expensive corrections later.