01 · ChinaMNC
Why China, and what to check first
China remains one of the world's largest consumer and manufacturing markets, and many foreign founders want a local entity so they can contract with Chinese customers, hire staff and hold a bank account in the country. Before committing, clarify what you actually need the entity to do: sell to local customers, source from suppliers, provide services, or simply maintain a presence. That answer drives the choice of entity and the city where you register.
Check the regulatory position of your industry early. Some sectors are open to wholly foreign-owned entities, others require a Chinese partner, and some are restricted. Rules also differ between free trade zones and other districts, and between cities. Confirm the current treatment of your specific activity with a qualified local adviser rather than relying on general summaries, and treat any timeline you hear as an estimate, not a promise.
02 · ChinaMNC
WFOE, joint venture or representative office
A wholly foreign-owned enterprise, usually called a WFOE, is the most common vehicle for foreign founders who want full control. It is a separate Chinese legal entity that can sign contracts, invoice customers and employ staff, provided its business scope covers the activity.
A joint venture brings in a Chinese partner, which can help with licenses, distribution or local relationships in sectors where full foreign ownership is not permitted. Control, profit sharing and exit terms belong in the joint venture contract, so negotiate them carefully.
A representative office is the lightest option. It cannot earn revenue directly; it is used for liaison, market research and coordination. If you plan to bill customers, a representative office will not be enough.
- WFOE: full control, can trade and hire, needs capital and a registered address.
- JV: shared ownership, useful where local partnership is required.
- RO: no direct revenue, limited staffing, suitable for liaison only.
03 · ChinaMNC
The five-step registration process
Registration in mainland China generally follows a sequence, though details and portals differ by city.
- Step one, name pre-approval: propose a company name and check it against existing registrations. Names follow local formatting rules and may need several attempts.
- Step two, preparation: settle entity type, registered capital, address, business scope, legal representative and shareholder structure, and draft the articles of association.
- Step three, filing: submit the application to the local market regulation authority, usually online with supporting documents. Expect requests for corrections.
- Step four, licenses and seals: collect the business license, then have official company seals made and recorded as required locally.
- Step five, post-setup: complete tax registration, open a bank account, and arrange work permits and residence permits for foreign staff who will live in China.
Each stage depends on the previous one, so plan the sequence rather than treating the steps as parallel tasks.
04 · ChinaMNC
Documents foreign founders usually prepare
Paperwork requirements vary by city and entity type, but founders should expect to gather the following.
- Passport copies of foreign shareholders, directors and the legal representative.
- Proof of address for foreign shareholders, often requiring notarisation and, where applicable, legalisation or an apostille, plus a Chinese translation.
- Corporate shareholder documents: certificate of incorporation, constitutional documents and board resolutions, similarly notarised and translated.
- Evidence of the registered address in China, such as a lease or a provider's confirmation.
- A proposed business scope and articles of association.
- Capital contribution details and the identity of the legal representative.
Notarisation and translation take time, especially when documents originate in several countries. Prepare these before filing, keep consistent spellings across every document, and confirm the exact format the local authority expects, because a mismatch in a name or address is a common cause of delay.
05 · ChinaMNC
Registered address and business scope
The registered address is the company's official location. It must be a real, usable address accepted by the local authority, and it affects which district office handles your filing and which incentives may apply. Many founders use a serviced office or an incubator that provides address registration. Verify that the provider is authorised for your type of business; some addresses cannot support certain licensed activities.
Business scope defines what the company may legally do. Write it to cover your current plans and reasonable near-term expansion, but avoid vague or unrelated items that invite questions. Activities that require a separate licence, such as certain food, education, logistics or financial services, must be handled specifically and may need approvals before you can trade. Changing scope later is possible but adds time, so align the wording with your actual revenue model from the start.
06 · ChinaMNC
Banking, tax and visas after registration
Opening a corporate bank account usually requires the business license, seals, identification of the legal representative and, in many cases, an in-person visit. Banks apply their own onboarding checks, so prepare a clear explanation of your business and expected flows. Foreign exchange and cross-border payments follow specific rules; ask your bank what documentation it requires for the transactions you expect.
After tax registration, the company must file returns even when there is no revenue, and must understand its invoicing obligations. Many founders appoint a local bookkeeping firm for the first year. Foreign staff who will work in China generally need a work permit and a residence permit; the process is separate from company registration and involves the employer. Start early, because these applications depend on the company's documents being complete. Requirements change, so confirm current rules with the local authorities or a qualified adviser.
07 · ChinaMNC
Common mistakes to avoid
Most delays come from preparation, not from the rules themselves. Watch for these patterns.
- Choosing an entity before defining the revenue model, then discovering a representative office cannot invoice.
- Underestimating document formalities: missing notarisation, inconsistent translations, or names that differ between passports and filings.
- Registering at an address that cannot support the intended licensed activity.
- Writing a business scope that is too narrow for near-term plans or too vague to satisfy reviewers.
- Assuming a bank account opens automatically once the license is issued.
- Forgetting recurring tax filings, or leaving visa and work permit planning until staff have already arrived.
- Relying on verbal estimates rather than written confirmations from advisers and authorities.
Build a checklist, confirm each item locally, and keep copies of everything you submit.