company setup, legal structuring and ongoing compliance support
Company Formation in China
Why China?
China offers strategic advantages for companies targeting Asia-Pacific markets and global supply chains.
- Access to the world’s second-largest economy
- Strong manufacturing and export infrastructure
- Large domestic consumer market
- Established technology and innovation hubs (Shenzhen, Shanghai, Beijing)
- Extensive double tax treaty network
- Structured foreign investment framework under national legislation
Key Facts About China
Legal System | Civil law system with socialist legal framework |
Corporate Income Tax | Standard 25% (reduced 15% for certain high-tech enterprises) |
VAT | 6%, 9%, or 13% depending on sector |
Currency | Renminbi (RMB / CNY) |
Double Tax Treaties | 100+ treaties worldwide |
Minimum Capital | No statutory minimum in most sectors (subject to business scope) |
Types of Companies in China
Foreign investors must choose the correct structure depending on their activity and sector.
Foreign investors must choose the correct structure depending on their activity and sector.
Wholly Foreign-Owned Enterprise (WFOE)
A WFOE is the most common structure for foreign investors in China. It allows 100% foreign ownership without a Chinese partner.
Key Features:
IT companies, consulting firms, international trading, manufacturing, tech startups.
Key Features:
- Independent legal entity
- Full operational control
- Can conduct commercial activities and issue invoices (fapiao)
- Subject to Chinese corporate tax
- Complete ownership and profit repatriation (subject to tax)
- Suitable for trading, consulting, IT, manufacturing
- Stronger IP protection compared to informal structures
IT companies, consulting firms, international trading, manufacturing, tech startups.
Joint Venture
Joint Venture (JV)
Overview:
A Joint Venture is formed between a foreign investor and a Chinese partner.
Key Features:
Regulated industries, infrastructure, manufacturing partnerships.
A Joint Venture is formed between a foreign investor and a Chinese partner.
Key Features:
- Shared ownership and governance
- Often required in restricted industries
- Capital contribution defined in Articles of Association
- Local market access and partner expertise
- Easier licensing in regulated sectors
Regulated industries, infrastructure, manufacturing partnerships.
Representative Office (RO)
Overview:
A non-profit structure used for liaison, research, and promotion.
Key Features:
Market research, sourcing, business development.
A non-profit structure used for liaison, research, and promotion.
Key Features:
- Cannot generate revenue directly
- Limited operational scope
- Requires chief representative
- Lower setup complexity
- Market testing before full entry
Market research, sourcing, business development.
We create global legal solutions
How It Works
Initial consultation and structure selection
Company name check and reservation
Due diligence and compliance review
Preparation of incorporation documents
Company registration with the registry
Delivery of corporate documents
Required Documents
From the client:
- Passport copies of shareholders and directors
- Proof of address
- Company structure and business scope description
- Articles of Association
- Lease agreement for registered office in China
- Bank reference and background documentation
Prepared as part of the service:
- Structuring advice (WFOE vs JV vs RO)
- Preparation of incorporation documents
- Assistance with government filings
- Company chops (official seals) registration
- Tax registration and initial compliance setup
Taxation and Compliance
Corporate Income Tax
- Standard rate: 25%
- Reduced 15% for High and New Technology Enterprises (HNTE)
- Withholding tax on dividends: typically 10% (may be reduced by treaty)
- 13% (goods and manufacturing)
- 9% (transport, construction)
- 6% (services, IT, consulting)
- Monthly VAT filings
- Quarterly corporate tax prepayments
- Annual audit required for most WFOEs
- Annual reporting to authorities
- Accounting records must be maintained in China
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Bank Account Opening
Corporate bank accounts are opened with Chinese commercial banks after incorporation
.
Requirements typically include:
- Business license
- Company chops (official seals)
- Registered office lease
- Identity documents of legal representative
! Bank account opening is subject to independent bank approval and cannot be guaranteed.
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Bank account opening is subject to independent bank approval and cannot be guaranteed.
Some international banks may have additional requirements for entities, particularly for foreign owners or high-risk jurisdictions.
Some international banks may have additional requirements for entities, particularly for foreign owners or high-risk jurisdictions.
We create global legal solutions
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Frequently Asked Questions (FAQ)
Typically 2–4 months depending on the city, industry and licensing requirements.
Yes, through a WFOE, unless the industry falls under restricted or prohibited sectors in the Foreign Investment Catalogue.
Yes. Most WFOEs must undergo annual financial audit and reporting.
Yes, after tax payment and completion of annual audit, dividends may be distributed subject to withholding tax and foreign exchange rules.
Partial remote setup is possible, but physical presence may be required for certain banking or registration procedures depending on region.
Ready to Register a Company in China?
Entering China requires precision, compliance, and correct structuring from the start.
We structure your China entry professionally — minimizing risk, ensuring compliance, and building a sustainable operational foundation.
We structure your China entry professionally — minimizing risk, ensuring compliance, and building a sustainable operational foundation.
Why MyFirm Global?
- Experience with international corporate structures
- Multi-jurisdictional approach
- Focus on compliance and long-term support
- Assistance beyond incorporation
