Register and run a company in mainland China

01 · ChinaMNC

Why founders look at mainland China

Founders usually consider mainland China for a few practical reasons: proximity to large manufacturing and supply chains, access to a deep pool of engineering and operations talent, and the chance to sell into a market where local presence often matters for trust and speed. A local entity can make it easier to sign contracts, hire staff, invoice customers and hold a bank account in the country.

It is also a market that rewards preparation. Rules differ by city and district, and some sectors restrict or prohibit foreign ownership. Consumer expectations, pricing and distribution channels can look very different from your home market. Founders who do well tend to treat China entry as an operating project rather than a paperwork exercise.

Before you commit, be honest about what you need: a sales office, a sourcing desk, a service team, or a full operating business. That answer shapes your entity choice, your registered address, your business scope and your budget. It also tells you which local advisers you need first.

02 · ChinaMNC

WFOE, joint venture or representative office

The three structures foreign founders most often compare are the wholly foreign-owned enterprise (WFOE), the joint venture (JV) and the representative office (RO). Each fits a different stage and purpose.

• WFOE: a foreign-owned limited liability company. It can generally conduct approved business activities, hire employees and invoice customers. It requires registered capital, a registered address and an approved business scope.
• Joint venture: a company shared with a Chinese partner. It can help where local relationships, licenses or distribution matter, but it requires careful agreement on governance, capital, profit sharing and exit.
• Representative office: a liaison office. It is limited in what it can do and generally cannot earn revenue directly, so it suits market research or coordination rather than full operations.

Many founders start with a WFOE when they intend to trade, hire and invoice. A JV may make sense in restricted or relationship-heavy sectors. An RO can be a low-commitment first step. Confirm what your specific industry allows before choosing.

03 · ChinaMNC

A five-step registration path

Registration is usually a sequence rather than a single event. The exact steps and order depend on your city, district and industry, but a practical path looks like this.

• Step 1 — Define the business: decide your activities, target customers, staffing plan and budget. Confirm whether your sector is open, restricted or prohibited for foreign investment.
• Step 2 — Choose the entity and name: select WFOE, JV or RO, then prepare Chinese company name options for approval. Check naming rules with your local adviser.
• Step 3 — Prepare incorporation documents: articles of association, investor documents, legal representative details, registered address proof and capital plan. Some foreign documents need notarisation, legalisation or consular authentication, so allow time.
• Step 4 — Submit and obtain approvals: file with the market regulation authority and any sector regulator. You may also need tax, customs, foreign exchange and other registrations.
• Step 5 — Open operations: complete bank account opening, tax onboarding, payroll setup and any required visas or work permits, then begin trading within your approved scope.

Treat these as planning stages, not guaranteed timelines. Local processing varies.

04 · ChinaMNC

Documents to prepare

Document requirements vary by city, entity type and industry, but most foreign founders will need a core set. Preparing clean, consistent documents early reduces back-and-forth later.

• Investor documents: certificate of incorporation or registration, constitutional documents, and proof of the legal representative or authorised signatory.
• Identity documents: passports or other ID for directors, supervisors, legal representative and shareholders.
• Company name: several Chinese name options in your preferred order.
• Registered address: a lease or address certificate acceptable to the local authority.
• Constitutional documents: articles of association, and for a JV, the joint venture contract.
• Capital and business scope: a registered capital plan and a written description of intended activities.
• Authorisations: powers of attorney and board or shareholder resolutions where required.

Foreign-language documents usually need Chinese translations. Some documents require notarisation or legalisation. Ask your local adviser for the current checklist for your district before you courier originals.

05 · ChinaMNC

Registered address, business scope and capital

Three items cause more delay than almost any others: address, scope and capital.

Registered address. You need a location accepted by the local authority. Some districts allow virtual or shared address services for certain activities; others require a real office. Check zoning and whether the address can support your planned business.

Business scope. This is the written list of activities your company may conduct. It should match what you actually plan to do. Some activities require a separate licence or permit before you can operate. Writing an overly broad or mismatched scope can create problems later with invoicing, banking or regulators.

Registered capital. This is the capital committed by shareholders. Rules on minimum amounts, contribution timing and currency vary by industry and city. Set an amount you can realistically fund and that fits your licence requirements. Do not treat it as a formality.

Keep these three aligned with your operating plan, and revisit them if your business changes.

06 · ChinaMNC

Banking, tax and visas

After incorporation, the operating basics usually involve a bank account, tax registration and immigration.

Banking. Opening a corporate account typically requires the licence, company seals, identity documents and proof of address, and banks apply their own due diligence. Some founders open a basic account first and add foreign-currency or online banking later. Prepare clear explanations of your business and expected flows.

Tax. Register with the tax authority, understand your invoicing obligations, and set up bookkeeping. Different activities and taxpayer statuses carry different rules. Engage a local accountant early so your filings and invoices are correct from the start.

Visas and permits. Foreign staff generally need a work permit and a residence permit to work in China. Business visas suit meetings and short visits, not employment. Rules and eligibility depend on the role and city.

Keep your bank, tax and immigration setup consistent with your registered scope and address.

07 · ChinaMNC

Common mistakes to avoid

Most problems are avoidable with planning. These are the mistakes founders most often report.

• Choosing an entity before defining the business. Pick the structure after you know your activities, customers and hiring plan.
• Underestimating document preparation. Notarisation, legalisation and translation take time. Start early.
• Using an address that does not fit your scope. Confirm the address can support your planned activities and licences.
• Writing a vague or overbroad business scope. Match it to real operations and required permits.
• Setting registered capital without a funding plan. Commit only what you can realistically pay in.
• Treating banking and tax as afterthoughts. Set up accounts, invoicing and bookkeeping before you trade.
• Assuming rules are the same everywhere. City, district and industry differences are real.

Use local legal, tax and corporate services advisers to confirm your plan before you sign leases or transfer funds.