Starting and Doing Business in China
Explore mainland China with a clear plan for market entry, company structure, employment and ongoing compliance. Roch Agency offers initial planning and coordination; regulated legal, tax and registration work is referred to appropriately qualified local professionals. Hong Kong and Macau require separate assessments.
Choose a route that fits your activity
Foreign-invested company: a limited liability company may be wholly foreign-owned where the sector permits, or involve Chinese partners. The term WFOE remains common, but current registration follows the Company Law and Foreign Investment Law. Joint ventures require careful governance, control and exit arrangements.
Partnership: general and limited partnerships can be relevant, with different liability and sector rules. Representative office: an overseas company's liaison or research presence is a separate option; it should not be treated as an unrestricted trading company. Obtain advice on permitted activities, staffing and tax before choosing it.
Market testing: distributors, sourcing agreements, trade fairs and cross-border sales may provide an initial route without immediately establishing a local company. Assess contracts, import responsibilities, tax exposure and any local licensing first.
Foreign ownership, market access and licences
Check the current foreign-investment negative list, applicable free-trade-zone rules and sector licences before committing. Prohibited activities cannot be pursued; restricted activities may require approvals or ownership conditions. An ordinary company registration is not permission to conduct every activity.
Shanghai's official guidance excludes overseas investors from operating as an individually-owned business or investing in a sole-proprietorship enterprise. A one-shareholder limited company is a different structure. Do not assume European freelancer or sole-trader arrangements transfer directly to China.
Formation: documents and sequence
1. Define city, activities, ownership, business scope and licensing needs.
2. Confirm the company name, lawful business address, capital plan and responsible officers.
3. Prepare shareholder identity/qualification evidence, articles, appointment documents and any required approvals. Check translation, apostille and verification requirements.
4. Complete registration and foreign-investment information reporting.
5. Arrange company seals, bank onboarding, tax and invoicing setup, and any employment or social-insurance registrations.
6. Put accounting, annual reporting, contracts and licence renewals into operation.
Registration speed is not the same as launch time. Document preparation, regulated-sector approvals and bank checks can take substantially longer than the registration decision. Shanghai's official guidance says company establishment itself is free of government registration charges; addresses, advisers, banking and other services may still cost money.
Capital, bank accounts and foreign exchange
Registered capital is a shareholder commitment, not an agency fee. New limited companies generally require subscribed contributions to be paid within five years, subject to applicable exceptions. Choose a realistic amount for planned operations and sector rules. No general minimum does not mean no funding requirement.
Banks conduct their own identity, beneficial-ownership, business-purpose and source-of-funds checks. Account opening, capital contributions and international payments are not guaranteed. Profit distributions and remittances require appropriate corporate, tax and bank documentation; obtain a case-specific assessment before transferring funds.
Tax, accounting and ongoing obligations
The standard corporate income-tax rate is 25%; eligibility for incentives must be assessed separately. VAT treatment, invoicing, payroll, social insurance, withholding, tax treaties and customs depend on activities and circumstances. Keep reliable records, complete periodic filings and annual reporting, and review beneficial-ownership reporting and data-protection obligations with a local adviser. An inactive company can still have obligations.
Work and residence for business owners
Owning or managing a company does not automatically permit you to work or live in China. M visas and qualifying visa-free business visits concern permitted visits; employment requires the appropriate authorisation. Depending on qualifications, employment, talent or local entrepreneurship routes may be relevant. K visas cover qualifying young STEM talent; R visas cover qualifying high-level talent. Neither should be marketed as an unconditional founder visa.
Read China Visas & Residence. We assess nationality, role, intended activities, qualifications and location before recommending the next administrative steps.
Cities and opportunities to assess
Shanghai is our starting point for international market-entry enquiries. Beijing, Shenzhen, Guangzhou, Hangzhou and Chengdu can also be considered according to your customers, industry, talent needs and local requirements. Potential briefs include sourcing and trade, professional services, technology collaboration, e-commerce and local distribution. These are planning options, not promises of licences, profits, grants or unrestricted foreign ownership.
Our service and your budget
Start with an assessment of your proposed activity, nationality, ownership, city, staffing and budget. We can organise a document checklist and coordinate introductions and agreed follow-up with local professionals. Before work starts, you receive a written scope and quote identifying Roch Agency's fee and external costs separately.
Company formation, registered address, accounting, bank support, permits and ongoing compliance are individually quoted after local-provider confirmation. Share capital, taxes, translation, certification, official charges and third-party fees are separate unless expressly included.
Discuss your China business plans · contact@rochagency.com · WhatsApp +372 539 795 93
China property and relocation · Visas and residence
Official sources
Checked 29 October 2026. Individual advice and current local confirmation are necessary before committing.
China foreign-investment guide · Registration documents · Shanghai market access and costs · Ownership, scope and company structures · Capital contribution period · Tax guidance
Photo: Denys Nevozhai / Unsplash, D8iZPlX-2fs. Unsplash License.