Your Gateway to Chinese Business

Foreign investors can establish several types of business entities in China, each tailored to specific goals (our team can help you match the right structure):

• Representative Office (RO)
  • Purpose: Market research/liaison with overseas HQ
  • Pros: Easiest to set up; paves way for future investment
  • Cons: Cannot invoice in RMB; max 4 staff (via local agency); high tax on expenses
• Wholly Foreign-Owned Enterprise (WFOE)
  • Purpose: Manufacturing, servicing, trading (as FICE)
  • Pros: 100% ownership/control; more operational freedom than RO
  • Cons: Industry-specific minimum capital (if applicable); standard setup takes 3-6 months (we shorten to 3 working days)
• Joint Venture (JV)
  • Purpose: Restricted industries requiring local partners; leverage local resources
  • Pros: Access to restricted sectors; shared costs
  • Cons: Split control; IP/technology transfer risks; inherited partner liabilities
• Other Options: Foreign-Invested Partnership (FIP), M&A, VIE (for restricted sectors, note regulatory uncertainty)

Our consultants will assess your business scope, industry and budget to recommend the optimal structure.

Choosing the right entry model requires aligning with your business goals, risk tolerance and long-term plans. To avoid costly missteps:

Key Evaluation Factors:

• Well-defined business scope (must match registered scope to issue fapiao)
• Industry restrictions (check the latest Foreign Investment Negative List)
• Need for ownership control (WFOE = full control; JV = shared control)
• Short-term vs long-term presence (RO = short-term; WFOE = long-term)
• Location preferences (FTZs/GBA/Hainan offer preferential policies)

Our on-ground team provides 1-on-1 guidance: from pre-market research to structure selection, we ensure your model fits both current needs and future growth.

Key Government Agencies Involved:

• Ministry of Commerce (MOFCOM) & local branches (foreign investment approval)
• State Administration for Market Regulation (SAMR) & local branches (name approval, license issuance)
• State Administration of Foreign Exchange (SAFE) (foreign currency management)
• State Taxation Administration (STA) (tax registration)
• General Administration of Customs (GAC) (for trading/manufacturing entities)

Timelines vary by structure: e.g., manufacturing WFOEs need environmental evaluation (adds 2-4 weeks), while our streamlined service skips non-essential delays for standard service entities.

Full Registration Workflow (with our support):

• Company Name Approval (1 working day via SAMR)
• Document Submission (Real-name Auth via APP, 1 working day)
• Receive Business License (1 working day)
• Tax Registration & Chop Carving (2-3 working days post-license)
• Bank Account Opening (5-7 working days, we coordinate with banks)

Most industries have no legal minimum registered capital (exceptions: banking, finance, insurance). Key rules (2024 Company Law Update):

• Capital should cover at least 1 year of operations (rent, salaries, expenses).
• Subscribed Capital Model: No upfront full payment, but a contribution schedule (in AoA) must be registered with SAMR.
• Transitional Deadlines (for companies established before July 1, 2024):
  • LLCs: Adjust contribution period to ≤5 years by June 30, 2027; full payment by June 30, 2032
  • Joint-stock companies: Full payment by June 30, 2027
• Offshore Debt Limit: Max debt = Total Investment - Registered Capital (we help optimize this ratio).
• Capital must come from overseas (local RMB is not allowed); cannot be freely wired out post-injection.

Our team will help you set a realistic capital amount that meets regulatory requirements and your business needs.

Corporate bank accounts are mandatory for daily operations. We assist with document preparation and bank coordination to streamline this process:

Account Types & Process:

• Pre-Incorporation: Temporary Account
  • For foreign currency deposits & pre-operational expenses
• Post-Incorporation: Mandatory Accounts
  • RMB Basic Account (daily operations: salaries, payments)
  • Foreign Currency Capital Account (receive overseas capital contributions)
• Banks: Choose from international banks (e.g., HSBC) or local banks (e.g., ICBC) with foreign exchange capabilities.
• Timeline: 5-7 working days (we expedite communication with banks).

Yes – all companies must register with a compliant commercial address (residential addresses are prohibited).

Our Solution:

• We provide compliant shared office addresses (valid for SAMR registration) – no need for full-time office space initially.
• Addresses meet all regulatory requirements (valid lease agreement, commercial property certification).

Closing a business requires formal liquidation & deregistration (do NOT "walk away" – this risks severe penalties for legal representatives). Our team manages the entire process:

Key Liquidation Steps:

• Form a liquidation committee & draft a plan
• File record with SAMR
• Notify creditors (direct & public announcement)
• Settle debts & terminate employees
• Dispose of remaining assets
• Complete tax/customs deregistration
• Cancel business license, bank accounts & company chops

Timeline: 3-6 months (RO closure is simpler, ~1-2 months). We handle communication with all government agencies to minimize delays.

Yes – for short-term/limited operations, we offer Global Staffing Solutions (GSS) (including PEO services) to operate legally without a local entity:

• Use Cases: Market research, short-term sourcing/sales, project-based work
• Benefits: Cost-efficient, flexible, mitigated risk (no entity setup costs)
• Our GSS Services:
  • Hire full-time local/foreign staff (we handle contracts & compliance)
  • Manage payroll & social security contributions
  • Ensure adherence to local labor laws
• Note: GSS is for short-term use – long-term/scalable operations require a legal entity (e.g., WFOE).

Foreign-owned companies face these key taxes (our accounting team optimizes your tax strategy):

• Corporate Income Tax (CIT): 5% to 25%(depending on profit size)
• Value-Added Tax (VAT): 1%-13%(based on revenue scale and business type)
• Withholding Tax on payments to foreign entities
• Social Security Contributions for employees

Pre-Incorporation Expense Deduction:

• FIEs: Deduct "pre-operation costs" (from name approval to first revenue)
• ROs: Taxed on expenses – we help allocate costs to overseas HQ to reduce tax burden