Quick answers on setting up and operating a company in China.
How long does setting up a WFOE in China take?+
Setting up a WFOE involves incorporation documents, Enterprise Name Registration, and Foreign Invested Enterprise Registration. A priority advisory service can get your business operational in days once documents are ready.
Can a single foreign shareholder own 100% of the company?+
Yes — a WFOE is a wholly foreign-owned enterprise, which can be owned 100% by a single foreign shareholder, subject to the relevant industry restrictions.
What is a legal representative and what are their responsibilities?+
A legal representative is the individual who represents the company and bears legal responsibility for its actions. Choosing the right person and understanding their duties is a key part of setup.
Do I need to be physically in China to set up the company?+
Much of the process — document preparation, registrations, and filings — can be coordinated by a qualified advisory team on your behalf, with local verification handled as required.
What does a typical China company setup cost?+
Setup costs vary with business scope, city and the structure chosen. A qualified advisor can outline a realistic cost range once your scope and location are known.
What are company chops and who holds them?+
Company chops (seals) are the formal signature of a Chinese company. A service provider can act as custodian of the seals, filings, and registrations, affixing them only under agreed procedures.
What does bank account opening involve?+
Opening involves both Capital and RMB basic accounts, including online banking application, general account setup, and foreign-currency account registration.
What taxes and filings does a new business face?+
A new entity needs initial tax filing and VAT General Taxpayer status application, completing the tripartite agreement between the company, the bank, and the tax bureau.
What social insurance must the company set up?+
Social insurance, medical insurance, and housing fund accounts for the entity, plus annual CA certificate renewal for the government platforms.
Can I move from a virtual office to a physical office later?+
Yes — as your operations grow you can transition from a virtual or registered address arrangement to a physical office, adjusting your filings accordingly.
What annual compliance does a China business require?+
Annual compliance involves liaising with Commerce, Customs, Market Regulation (AMR), and Foreign Exchange authorities to submit the consolidated annual report.
