Register and operate your company in mainland China

01 · ChinaMNC

Why mainland China

Mainland China is a large and varied market, and for many foreign founders the reason to be there is proximity: to customers, to suppliers, to manufacturing partners, or to a talent pool you cannot reach from abroad. Operating through a local entity can make it easier to sign contracts, invoice customers, hire staff and hold a bank account in the country.

• Market access: a local company can contract and invoice in China, which many buyers and platforms expect.
• Operations: hiring, leasing office or factory space and managing local suppliers usually assumes a registered entity.
• Control: depending on the sector, foreign ownership may be permitted, restricted or require local partners.
• Complexity: registration, tax, banking and visa rules are administered locally and change over time.

Treat China as a set of regional markets rather than one. City, district, industry catalogue and your own activity determine what is possible. Start with the activity you actually plan to perform, then confirm the rules that apply to it.

02 · ChinaMNC

WFOE, joint venture or representative office

The three structures most often considered by foreign founders each serve a different purpose.

• Wholly foreign-owned enterprise (WFOE): a limited liability company owned by foreign investors. It can generally conduct permitted business activities, hire staff and invoice customers. It requires capital, a registered address and ongoing compliance.
• Joint venture (JV): a company shared with one or more Chinese partners. Useful where local partnership, licences or market knowledge matter, or where rules require local participation. Control, governance and exit terms need careful drafting.
• Representative office (RO): a liaison presence that cannot generally earn revenue directly. Suitable for market research and coordination, not for invoicing customers.

Ownership rules differ by industry. Some sectors are open to full foreign ownership, others are restricted, and some require approvals. Check the current negative list and your specific activity before choosing a structure, and confirm whether special licences apply.

03 · ChinaMNC

The five-step registration process

Exact procedures vary by city and district, but the sequence below reflects the usual path.

• Step 1 — Define the activity: describe what the company will actually do, and identify the business scope wording and any sector licences or approvals required.
• Step 2 — Choose location and address: select a city and district and secure a registered address acceptable to the local authority; confirm what leases and documents they require.
• Step 3 — Prepare and file: draft the articles, investor documents and appointment papers, then submit the establishment application through the local system, often with a name reservation first.
• Step 4 — Licences and registrations: obtain the business licence, then complete tax registration, and any sector-specific permits your activity requires.
• Step 5 — Bank, tax and people: open the corporate bank account, set up tax reporting and invoicing arrangements, and arrange work and residence permits for foreign staff.

Each step depends on the previous one, and some require original documents that must be notarised or legalised abroad. Plan for document lead time.

04 · ChinaMNC

Documents you will typically need

Document lists differ by city, entity type and industry, but most applications draw on the same core set.

• Investor documents: certificate of incorporation or equivalent for corporate shareholders, or passport for individuals, often notarised and legalised or apostilled.
• Constitutional documents: articles of association or charter of the foreign investor, plus the proposed articles for the new company.
• Identity and appointment papers: passports of directors, supervisors and legal representative, with appointment and acceptance documents.
• Address evidence: lease or ownership documents for the registered address, in the form the local authority accepts.
• Application forms: name reservation, establishment application and business scope wording.
• Translations: Chinese translations of foreign-language documents, often required to be consistent and complete.

Some documents must be signed abroad and then legalised. Where a document is rejected, the reason is often a formatting or translation issue rather than substance, so build in time to correct and resubmit.

05 · ChinaMNC

Registered address and business scope

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

Registered address. The company must have an address accepted by the local registration authority. In practice this may be a leased office, a co-working or incubator address approved for registration, or another arrangement the district permits. Requirements vary: some districts inspect the premises, some require specific lease terms, and some restrict certain activities to particular buildings. Confirm acceptability before signing a long lease.

Business scope. This is the formal description of permitted activities recorded in the business licence. It should match what you actually intend to do, because it affects invoicing, licences and bank onboarding. Some activities appear on a standard catalogue and can be entered directly; others require pre-approval or a specific licence. Write the scope with your real revenue activities in mind, and revisit it if the business changes — amending it later is possible but takes time.

06 · ChinaMNC

Banking, tax and visas

Once the business licence is issued, the operational set-up begins.

• Bank account: open the corporate RMB account and, where needed, a foreign currency account. Banks apply their own onboarding and due diligence; expect questions about ownership, activity and expected flows, and prepare supporting documents.
• Tax registration: complete registration with the tax authority, confirm your taxpayer status, and establish invoicing and reporting routines. VAT and corporate income tax are the main taxes most companies encounter, but treatment depends on activity and status.
• Accounting: bookkeeping and periodic filings are required. Many foreign founders engage a local accounting firm or bookkeeper; confirm what they will handle and what remains your responsibility.
• Visas and permits: foreign staff generally need a work permit and a residence permit. The employer must be appropriately registered, and eligibility depends on the role and the individual's profile.

Rules and bank practices change. Confirm current requirements with the bank, tax office and visa authorities rather than relying on older accounts.

07 · ChinaMNC

Common mistakes to avoid

Most problems are preventable with planning.

• Choosing the entity before the activity: decide what you will actually do and which licences apply, then pick the structure.
• Ignoring ownership restrictions: some sectors limit or prohibit foreign ownership, or require approvals; verify before committing capital.
• Signing a lease too early: confirm the address is acceptable for registration before you sign.
• Vague business scope: a scope that does not match your revenue activities can block invoicing and banking.
• Underestimating document work: notarisation, legalisation and translation take time and are frequently the source of delay.
• Treating registration as the finish line: tax filings, accounting and permit renewals are ongoing obligations.
• Relying on informal advice: requirements vary by district and change; verify with authorities and qualified local advisors.

Build a realistic plan, keep documents consistent, and get local professional help where the rules are unclear.