Foreign-owned company setup
We set up wholly foreign-owned enterprises (WFOEs) for trading, manufacturing, IT and work with the domestic Chinese market. We prepare the articles of association and the full filing package for SAMR, reserve the company name, and assist with the registered address, company chops and tax registration. We also support corporate account opening and SAFE foreign-exchange registration. Most of the groundwork is handled remotely.
A quick overview of the corporate, tax and annual requirements of the Chinese jurisdiction for non-residents.
A wholly foreign-owned enterprise, the Chinese equivalent of a limited liability company.
Full ownership by a non-resident with no Chinese partner in open sectors.
The director and legal representative may be of any nationality, with no residency in China required.
The standard rate on profits. VAT applies separately, from 3% to 13% on turnover.
There is no fixed minimum, but the registered capital must be paid in within five years of incorporation.
An annual audit, bookkeeping under Chinese standards, tax returns and a report to MOFCOM.
The final cost depends on the chosen package, the sector, the amount of capital and any additional tasks.
Data current as of July 2026.
From basic incorporation to a full launch with an import-export licence and a corporate bank account.
Company registration only
For import and export
Includes a corporate bank account
Please note: banking support does not guarantee account opening. The final decision is made by the bank after reviewing the company profile and its beneficial owners.
China suits businesses that need access to the world's largest domestic market, their own manufacturing base, and direct dealings with Chinese suppliers and buyers.
Setting up your own production or contract assembly with direct quality control and supply-chain oversight.
Foreign-trade operations with customs registration and the right to invoice and receive payment in RMB.
Selling on Chinese and cross-border marketplaces through a local entity with its own settlement account.
Development, support and service centres serving Chinese clients and the overseas parent company.
Direct access to China's domestic market and to regional supply chains across Asia.
Over 100 double-taxation agreements covering cross-border operations.
Reduced corporate income tax in free-trade zones and for high-tech companies.
Official fapiao invoices and settlement in RMB with Chinese counterparties.
To register a WFOE you will need the participants' documents, a decision on the company structure, and a Chinese company name. Foreign documents are notarised and apostilled or consularised, and most of the groundwork is handled remotely.
The exact set of documents depends on the city of registration, the sector and the ownership structure. Documents of non-residents require notarisation and an apostille, or legalisation in the country of origin.
The company is 100% owned by a foreign investor, either an individual or a corporate entity. No Chinese partner is required in open sectors.
There are no residency or nationality requirements. The legal representative is an individual who bears personal liability and is usually named as director.
A statutory role under Chinese law. The supervisor must be a separate person and cannot also serve as director.
A physical commercial address in China with a lease agreement. Virtual and residential addresses are tightly regulated and not always accepted.
There is no fixed minimum for most sectors. The declared capital must be paid in within five years of incorporation.
China taxes companies on a residence basis, with a standard rate of corporate income tax. The overall burden depends on the company's status, its sector, any preferential regimes and the timely filing of returns and the annual audit.
Corporate income tax
25%
standard rate, reduced from 15%
Tax model
Residence-based
worldwide income of the company is taxed
Annual return
31 May
corporate income tax annual reconciliation
Annual report
30 June
joint annual report to the authorities
Standard rate
The standard rate of corporate income tax in China is 25% for most companies.
Residence basis
A resident company is taxed on its worldwide income, not only on income sourced in China.
Preferential regimes
A reduced rate of 15% applies to high-tech companies and free-trade zones, and around 5% to small low-profit companies that meet the criteria.
VAT and surcharges
VAT ranges from 3% to 13% depending on the activity, plus local surcharges on VAT.
Keep accounts under Chinese standards, in RMB
File VAT and individual income tax monthly
Pay quarterly corporate income tax instalments
Undergo a mandatory annual audit by a local auditor
File the corporate income tax annual reconciliation by 31 May
File the joint annual report to the authorities by 30 June
A mandatory annual audit applies to every company in China, including dormant ones. The audit report is required to repatriate profits abroad. A company's tax status and obligations depend on its sector and actual activity.
Data current as of July 2026.
The banking route depends on the company's activity, the geography of its payments and the profile of its beneficial owners. Depending on the task, we select Chinese banks for settlement in RMB and solutions for accepting payments and working with marketplaces.
For day-to-day operations and settlement in RMB within the country. We select banks to match the company profile, including Bank of China, ICBC and China Merchants Bank.
For retail sales and working with online platforms. Payment acceptance through WeChat Pay and Alipay, and cross-border solutions such as Airwallex, PingPong and LianLian.
We prepare the company profile ahead of submission, so that the requirements of the bank and foreign-exchange control on client checks are addressed in advance.
We assess the activity, the geography of payments and the banks' requirements before submission.
We support the project from the initial review through to the delivery of corporate documents and any agreed additional tasks. We act as your corporate agent under Chinese requirements.
We analyse the ownership structure, the participants, the activity and the source documents, and check the client-review requirements before we start.
We agree the Chinese company name, prepare the articles of association and the registration forms, and handle the filing with the company registry.
We help appoint the legal representative and the supervisor, and arrange the registered address in line with the chosen package.
We deliver the business licence and the corporate set, arrange the company chops and complete tax registration.
The process covers the initial review, reservation of the Chinese company name, filing with the company registry and delivery of the registered company to the client. Most of the stages are handled remotely under power of attorney.
China does not solve every task. In some cases it is fairer to consider another jurisdiction, and we will help you find the right one.
Registration in China takes several months and involves an office, company chops, tax registration and foreign-exchange registration. For a quick launch, other jurisdictions are simpler.
Worth considering: Hong Kong, Singapore, UAE
Registration requires a genuine commercial address with a lease. Virtual addresses are not always accepted and are checked when the bank account is opened.
Worth considering: Hong Kong, Singapore
China involves bookkeeping under local standards, a mandatory annual audit and regular reporting. For projects with minimal activity, simpler structures are a better fit.
Worth considering: BVI, Seychelles, Belize
China has foreign-exchange controls, and repatriating profit abroad requires an audit and tax confirmation. If free cross-border flows matter, other jurisdictions are worth considering.
Worth considering: Hong Kong, UAE, Singapore
Not sure whether China fits your project? In a consultation we will assess the task honestly and suggest the optimal jurisdiction, even if it is not China.
If China is not a full fit in terms of structure, running costs or foreign-exchange control, compare the alternatives on the key parameters.
| Jurisdiction | Best for | Taxes | Upkeep | Banks |
|---|---|---|---|---|
 Hong Kong | Best for International trade, IT, holdings, work with Asia. | Taxes 8.25% / 16.5%, territorial basis. | Upkeep Moderate, annual audit. | Banks Banks and fintech, but strict compliance. |
 Thailand | Best for Local business, services, growing market. | Taxes Standard rate 20%. | Upkeep Moderate, local requirements. | Banks Local banks, presence required. |
 Indonesia | Best for Local business, growing market. | Taxes Standard rate 22%. | Upkeep Moderate, local requirements. | Banks Local banks, presence required. |
 Malaysia | Best for Regional business, trade, services. | Taxes Standard rate 24%. | Upkeep Moderate cost. | Banks Regional banks, moderate requirements. |
We will help you compare jurisdictions on taxes, banking, annual running costs and structural requirements for your specific task.
Every project is unique - we tailor the solution to the specific task, jurisdiction and business model of the client.
China The client was sourcing from Chinese factories through a trading intermediary: paying in dollars, losing money on commission and exchange rates, and only finding defects once the goods reached the warehouse. He wanted to deal with plants directly, pay in yuan and inspect batches before shipping.
Solution We registered a WFOE, obtained the business licence and company chops, completed tax registration and opened a yuan account for direct settlement with suppliers.
The longest part was finding premises for the registered address, you cannot file without a tenancy agreement. After that it moved quickly. We now pay factories in yuan directly and someone on the ground checks the batch before it ships.
China The client was selling through Chinese marketplaces, but the shop was registered to an acquaintance with a local passport and payouts went to his account. The whole arrangement rested on personal trust, and the revenue was still stuck inside China.
Solution We registered a WFOE, transferred the shop to the company, set up payment acceptance through Chinese providers and opened two accounts, yuan and foreign currency, to move revenue abroad.
Moving the shop worried me most, there was a real risk of losing the ratings and reviews. It worked out, the platform accepted the company documents on the second attempt. Revenue now goes to the company account and out through the bank.
China The client was trading through Chinese agents: every deal ran under someone else's export company, paperwork arrived late, and the export VAT rebate stayed with the agent. He needed his own entity with the right to bring goods in and out.
Solution We registered a WFOE, obtained the import and export licence, completed customs and foreign exchange registration, and opened a foreign currency account for settlements with counterparties.
The first shipment sat for a week over a wrong commodity code, we sorted it out with the broker. The second one went straight through. We now ship both ways ourselves and share neither the margin nor the rebate with an agent.
If you did not find the answer to your question, leave a request and we will look at your situation in person.
Get a consultationWith a complete set of documents, the business licence is usually issued in around 5 to 10 working days. A full launch, including the bank account and foreign-exchange registration, takes longer, typically one to two months. The timeline depends on the city, the sector and the type of company. Opening the bank account is handled separately and is not included in the registration timeline.
Most of the registration is handled remotely under power of attorney: agreeing the name, preparing the articles of association and filing the documents. A non-resident's passport and corporate documents are notarised and apostilled in the country of origin. Personal presence is usually required only when the bank account is opened, where the bank reviews the legal representative.
No. There are no nationality or residency requirements for the director or the founders. The company is run by a legal representative - an individual of any nationality who bears personal liability for certain obligations. A supervisor is appointed separately; this must be a different person who does not also serve as director.
For most sectors there is no fixed minimum. It is important to declare an amount sufficient for the company's activity, as the declared capital must be paid in full within five years of registration. Too high a figure creates an obligation, while too low a figure may raise questions at registration. Regulated sectors have their own minimums.
The standard rate of corporate income tax is 25%. A reduced rate of 15% applies to high-tech companies and residents of free-trade zones, and small low-profit companies pay less. VAT ranges from 3% to 13% depending on the activity. A resident company is taxed on its worldwide income.
For day-to-day operations the company needs an RMB settlement account, and for external transactions a foreign-currency account registered with the foreign-exchange authorities. The bank carries out client checks, and the legal representative often has to attend in person or complete a video verification. Account opening cannot be guaranteed; the final decision rests with the bank after reviewing the company profile and its beneficial owners.
The company keeps accounts under Chinese standards in RMB, files VAT and individual income tax monthly, and pays quarterly corporate income tax instalments. Each year it undergoes a mandatory audit by a local auditor, files the corporate income tax annual reconciliation by 31 May, and submits the joint annual report to the authorities by 30 June. The audit is mandatory even for dormant companies.
Most sectors are open to 100% foreign ownership. Restrictions apply to sectors on the negative list, such as parts of media, telecoms and education, where a Chinese partner or a separate permit may be required. We check the sector before registration begins.
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