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Company Formation China



Company Formation in China

Updated on Wednesday 21st November 2018

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Homepage-company-formation-china.jpgChina represents a competitive and appealing country on an international scale from an investment point of view, and a major force of the worldwide economy. Being a stable business partner in many fields of interest, China is recognized as a fast-growing economy and a global influence, with connections to powerful financial centers. China attracts investors from abroad to place their operations and to generate profits in the most prolific and appreciated industries of this country. If you want to open a company in China you can choose the type of structure that suits most the needs and the future activities. The company formation procedure in China is less bureaucratic and can be entirely overseen by our Chinese company formation agents.



Types of companies in China

Setting up a company in China and having success in the chosen domain will much depend on the business entity and the selected structure for performing the operations. Foreigners can set up the following companies:
  • •    Wholly Foreign-Owned Enterprise (WFOE), the most popular business structure in China;
  • •    joint venture companies destined for experienced business persons in China;
  • •    partnerships which can be suitable for small and medium-sized entrepreneurs;
  • •    private enterprises which can turn into public companies under certain conditions;
  • •    representative offices for those who want to test the Chinese market first;
  • •    sole proprietorships, a simple business structure for small businesses in China.
The State Administration for Industry and Commerce of the People’s Republic of China issues the registration certificate for new companies in this country, including for the ones established with foreign capital.
Here is a video presentation with information about how to start a company in China and about our company formation services in China


How can I register a company in China?

Depending on the chosen activities and sector, a WFOE in China can be opened in a fast manner, also considering particular documents for submission and several rules enforced. WFOE represents the common business form for foreigners who want to set up their businesses in China. The following matters are linked to the incorporation of a WFOE in China:
  • •    decide and verify the name of the business with the authorities in charge;
  • •    provide information about the owners (name, nationality, the country of residence);
  • •    set up the activities (an important step after the business structure is settled);
  • •    appoint the board of managers (these can be foreigners or Chinese nationals);
  • •    create a business feasibility report (each type of entity requests such report);
  • •    provide the minimum share capital in a Chinese bank (free trade zones do not require it);
  • •    apply for a business license in accordance with the type of activities;
  • •    register for tax purposes (it is suggested to verify the tax system in China).
Our company incorporation representatives in China can assist foreigners in registering their activities through companies in China. Furthermore, if you want to know the taxes imposed in this country, we suggest you use our tax calculator, or better yet, address your requests at any time. It is also mandatory to hire an accounting firm in China, in order to properly keep the records and the financial activities of your company. If you want to register a company in China, please talk to one of our advisors.


Do I need licenses and permits in China?

Many activities in China are subject to special permits and licenses and the requirements in this sense. For example, the administrative licenses are mandatory for activities set up in the retail or manufacturing sectors. Opening companies in the import and export sector, a productive and appealing domain in China attracts numerous investors from overseas who must, first of all, apply for special licenses and permits in this sense. The following sectors require special licenses and permits:
  • food & beverages, and pharmaceuticals are areas in which certain permits are necessary;
  • the automotive sector in China is subject to particular requirements, meaning that selling cars in this country cannot happen without registering and operating a joint venture. A Chinese partner is a mandatory request for this type of structure if you are a foreign investor;
  • the construction sector is an important field in China, where numerous foreigners are having companies;
  • certain areas in the telecommunications might be subject to particular licenses. 

How to open a representative office in China

Business persons who want to enter the Chinese market in a fast manner can set up representative offices or ROs with complete support offered by our team of company incorporation agents in China. A representative office in China cannot perform activities but foreigners can deal with the following matters:
  • they can verify and test the market before opening the business;
  • they can perform varied marketing research in the chosen business field;
  • they can develop future collaborations with business persons in China;
  • they can negotiate and sign all sorts of contracts in the name of the parent company.

Economy overview in China

The dynamic and distinct market in China has set the status of this country for many years: the world’s biggest economy. The efforts of the Chinese government is the statement of a solid and reliable business climate in China, taking into consideration that the main focus was to attract investments as much as possible and to raise the living standards of the population, among many others. In most industries, the legal framework stands at the base of success and allows investors develop in the most suitable ways. Technology, energy, engineering, health, manufacturing, import and export, automotive, food and beverages are only a few of the illustrative domains in which business persons can set up companies in China and benefit from numerous advantages like a stable market and varied ways to generate profits.
We are an experienced team of company formation agents in China who can offer complete support in company formation in China and related issues. If you are interested in company formation services in China, we kindly invite you to contact us at any time.


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Call us now at +44 203 287 0408 to set up an appointment with our company formation specialists in China. Alternatively you can incorporate your company without traveling to China.

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