Register and run a company in mainland China: a founder's guide

01 · ChinaMNC

Why China, and why now

China combines a very large domestic market with deep manufacturing and supplier ecosystems. For many founders the appeal is not one thing but the overlap: you can sell into the market and also build or source products there, sometimes with the same local team. Consumer demand is uneven across regions, so the more precisely you define your customer and city, the better your planning will be.

Entering mainland China is a commitment, not a side project. A foreign-invested entity brings reporting duties, local bookkeeping, and a need for someone on the ground who can handle filings and banking. Founders who succeed usually treat China as a separate operating market with its own budget, staff and decision-making, rather than as an extension of a home-country sales team.

It also pays to check whether your specific activity is open to foreign investment. China publishes a negative list describing sectors with restrictions or prohibitions for foreign investors, and the list is updated from time to time. Before you choose a structure, confirm that your planned business falls outside restricted categories, or plan around the conditions that apply.

02 · ChinaMNC

WFOE, joint venture or representative office

Three structures come up most often for foreign founders.

• Wholly foreign-owned enterprise (WFOE). A limited liability company owned entirely by foreign investors. It can conduct permitted business activities, invoice customers, hire staff and remit profits subject to tax and foreign exchange rules. It is the usual choice for founders who want control and the ability to earn revenue in China.
• Joint venture (JV). A company shared with a Chinese partner. Useful where local knowledge, licenses or relationships matter, or where rules require a local partner. The trade-off is governance: decision rights, capital contributions, exit mechanics and dispute resolution all need to be negotiated carefully and written down.
• Representative office (RO). A liaison presence that cannot engage in profit-making business. It suits market research or coordination, but it cannot invoice for services or trade.

Choose based on what the entity must actually do: sign contracts, earn revenue, hire, hold licenses, import goods. Structure follows activity, not preference.

03 · ChinaMNC

The five-step process

Registration details differ by city, but the sequence is broadly consistent.

• Step 1: Plan and verify. Define your business scope, check the foreign investment negative list, and confirm your activity is permitted. Decide on entity type, city, and who will act as legal representative.
• Step 2: Reserve the name and prepare documents. Submit a company name for approval through the local market regulation system, and prepare incorporation papers, charter, and investor documents. Foreign documents usually need notarization and legalization or an apostille, plus Chinese translation.
• Step 3: File for establishment. Submit the application to the market regulation authority. Where foreign investment information reporting applies, complete it through the relevant system.
• Step 4: Post-approval registrations. Obtain the business license, then arrange company seals, a bank account, tax registration and invoicing setup.
• Step 5: Start compliant operations. Set up bookkeeping, payroll and filing routines, register foreign staff as needed, and calendar your recurring obligations.

Each stage can reveal questions that need local input, so build review time into your plan.

04 · ChinaMNC

Documents you will typically need

Exact requirements depend on the city, entity type and investor profile, but the following are common.

• Investor identity documents. Passports for individual investors; for corporate investors, certificate of incorporation, constitutional documents and proof of the authorized signatory.
• Notarization and legalization. Foreign documents are generally notarized and then legalized by the Chinese embassy or consulate, or apostilled where the convention applies, with Chinese translations.
• Company charter and formation documents. Articles of association, shareholder and director appointments, and the legal representative's details.
• Registered address proof. A lease or ownership document for the premises, in a form the local authority accepts.
• Business scope wording. Activities described in the standard categories used by the registration system.
• Bank and tax onboarding papers. Signatory details, seal registration, and tax classification information.

Ask your local adviser for the current checklist for your city before you start collecting signatures; a missing legalization step can restart the clock.

05 · ChinaMNC

Registered address, business scope, and what they constrain

The registered address is the official location of your company, and it is more than a formality. Authorities expect the address to be real and usable for service of documents. Some cities allow serviced or virtual office arrangements for certain activities; others require actual office space. Landlords may need to provide ownership documents and consent. Check what your city accepts before signing a lease.

Business scope is the list of activities your company is permitted to carry out. It is written in standard categories, and some activities require a separate license or filing before you can start. If you plan to trade goods, provide services, or run an online business, make sure the scope reflects that. Adding activities later is possible but takes time, so describe your plans accurately at the start without overreaching.

Address and scope together shape what banks and tax authorities see when they review your company, so keep them consistent with your actual operations.

06 · ChinaMNC

Banking, tax and visas

After the business license, most founders turn to banking, tax and people.

• Banking. Open a corporate RMB account, and a foreign currency account if you need one. Banks apply their own onboarding and due diligence, so expect questions about ownership, business activity and expected flows. Prepare clean documentation and be ready to explain your model.
• Tax. Register with the tax authority, confirm your taxpayer status and invoicing needs, and set up bookkeeping from day one. China's tax rules are detailed, and local practice matters; work with an accountant familiar with foreign-invested companies.
• Visas and work permits. Foreign employees generally need a work permit and a residence permit to work in China. The process involves the employer and local authorities, and eligibility depends on the role and the applicant's profile. Start early, because timing affects when staff can legally begin.

Budget for professional support on banking and tax. It is usually cheaper than fixing problems later.

07 · ChinaMNC

Common mistakes to avoid

Most difficulties are predictable. Here are patterns founders often run into.

• Choosing the entity before defining the activity. Decide what the company must do first; the structure follows.
• Underestimating document formalities. Notarization, legalization or apostille, and translation take time. A small error can mean resubmission.
• Ignoring the negative list. Confirm your sector is open to foreign investment before committing to a plan.
• Treating the registered address as a placeholder. Use an address your city accepts and can document.
• Writing a vague or overbroad business scope. Match the scope to real plans and check licensing needs.
• Leaving compliance until later. Bookkeeping, tax filings and annual reporting are ongoing duties, not one-off tasks.
• Assuming home-country habits transfer. Banking, invoicing and hiring work differently; get local advice early.

None of these are reasons to avoid China. They are reasons to plan carefully and ask questions before signing.