Company Registration in China

Registering a Company in China: WFOE, Business Licence, Bank Account and Compliance

Registering a company in China can be a practical step for foreign entrepreneurs, exporters, importers, sourcing businesses, trading companies, consulting firms, service providers and brands that want a real local presence. A Chinese company can help you sign contracts, issue local invoices, hire staff, open a bank account, manage import and export operations, work with suppliers and build trust with Chinese partners.

But company registration in China is not only a formality. The legal structure, business scope, registered address, registered capital, shareholder documents, legal representative, tax registration, company chops, bank account and compliance obligations should be planned correctly before the application starts.

Myron Trade helps foreign clients understand the company setup process in China, prepare practical information, coordinate with registration agents, accountants, lawyers and local service providers, and connect company formation with real business needs: sourcing, export, import, procurement, logistics, consulting, trading and local operations.

Who Needs a Company in China?

Main Types of Companies for Foreign Investors in China

Foreign investors can use different structures in China depending on the activity, control requirements, partners and industry. The most common structure for many foreign small and medium businesses is a wholly foreign-owned enterprise, often called a WFOE. However, it is not the only option.

What Is a WFOE in China?

A WFOE is a wholly foreign-owned enterprise. In practice, many foreign investors use this structure when they want full ownership and control of their China business. A WFOE can often sign contracts, hire staff, issue invoices, open bank accounts, apply for relevant licences and operate within its approved business scope.

The word “WFOE” is still widely used in business language, although under China’s modern foreign investment system, companies are usually registered under the unified company law framework and foreign investment rules.

A WFOE can be useful for:

• trading and procurement;
• import and export support;
• business consulting;
• sourcing and supplier management;
• quality control coordination;
• logistics coordination;
• e-commerce support where permitted;
• market research and local sales operations;
• brand representation in China;
• service delivery to Chinese or international clients.

Step 1. Check Market Access and Business Activity

Before registering a company, the investor should confirm whether the planned business activity is open to foreign investment and whether special licences are required. Some activities are open. Some are restricted. Some require administrative approval or an industry-specific licence.

Before registration, check:

• whether the activity is open to foreign investors;
• whether the business appears on a restricted or prohibited list;
• whether a special licence is required;
• whether the company needs import/export rights;
• whether the company needs food, medical, telecom, education or other regulated licences;
• whether the business model requires a physical office;
• whether the company can issue the type of invoices needed by clients;
• whether the planned activity matches the future tax and accounting setup.

Step 2. Choose the Right Business Scope

Business scope is one of the most important parts of company registration in China. It defines what the company is allowed to do. A business scope that is too narrow may limit operations. A business scope that is too broad or poorly worded may delay registration or create future compliance problems.

Business scope may include wording related to:

• import and export of goods;
• technology import and export;
• domestic trade;
• business consulting;
• enterprise management consulting;
• procurement support;
• supply chain management;
• logistics consulting;
• translation and interpretation services;
• quality inspection coordination;
• marketing or market research;
• e-commerce where permitted;
• special licences for regulated activities where required.

Step 3. Select a Registered Address

A registered address is required for company registration in China. Depending on the city and district, the address may need to be a real office, a commercial address, an approved business park address or another acceptable registration address.

When choosing an address, consider:

• whether the address can be used for company registration;
• whether it matches the business activity;
• whether the district supports foreign-invested companies;
• whether import/export or logistics activities are convenient from that location;
• whether local tax bureau requirements are manageable;
• whether the address is only virtual or also usable for real office work;
• whether future bank and tax visits can be handled smoothly.

For trading, sourcing and consulting companies, a practical registered address can reduce future complications with tax, banking, official letters and inspections.

Step 4. Plan Registered Capital

Registered capital should be realistic. In many industries, there may not be a simple fixed minimum, but the capital should match the business activity, expected costs, rent, salaries, operations, licences and client trust. Under the current company law framework, investors should also plan when and how capital will be contributed.

Registered capital should consider:

• industry and business scope;
• city and district expectations;
• office rent and operating costs;
• staff salaries;
• inventory or procurement cash flow;
• import/export operation scale;
• licence requirements;
• bank account credibility;
• future visa or work permit planning where relevant;
• capital contribution timeline.

Step 5. Prepare Shareholder and Management Documents

The required documents depend on whether the shareholder is an individual or a company, and whether documents are issued abroad. Foreign documents may need notarisation, legalisation, apostille or consular authentication depending on the country and current requirements.

Step 6. Apply for Company Name and Business Licence

The company name and business licence are handled through the local market regulation authority. Once the application is approved, the company receives a business licence with key information such as company name, legal representative, registered capital, business scope, registered address and Unified Social Credit Code.

The business licence usually shows:

• Chinese company name;
• Unified Social Credit Code;
• legal representative;
• registered capital;
• company type;
• establishment date;
• business term;
• registered address;
• business scope;
• registration authority.

Step 7. Obtain Company Chops

Company chops are official seals used in China for contracts, invoices, banking, legal documents and corporate administration. They are extremely important and must be controlled carefully.

Common company chops include:

• official company chop;
• financial chop;
• legal representative chop;
• contract chop where needed;
• invoice chop where applicable;
• customs chop or special seals for certain businesses where required.

Step 8. Tax Registration and Fapiao Setup

After registration, the company must handle tax-related setup. In China, invoices are known as fapiao. They are not just normal commercial invoices; they are part of the tax system and are important for clients, accounting and compliance.

Tax setup may include:

• tax bureau registration;
• tax category confirmation;
• VAT taxpayer status planning;
• fapiao application;
• tax control device or digital invoice setup where applicable;
• accountant appointment;
• monthly or quarterly filing schedule;
• corporate income tax filing;
• annual reporting obligations;
• payroll and individual income tax setup if employees are hired.

Step 9. Open a Bank Account

A Chinese company normally needs a bank account to receive payments, pay suppliers, handle salaries, manage tax, receive capital contribution and conduct business operations. Bank account opening can require in-person checks, company documents, legal representative participation and explanation of the business model.

Banks may ask for:

• business licence;
• company chops;
• legal representative passport;
• registered address documents;
• articles of association;
• shareholder documents;
• business model explanation;
• contracts or proof of expected transactions;
• tax registration information;
• contact person and office verification.

Step 10. Import and Export Rights

If the company plans to import goods into China or export goods from China, it may need additional customs and foreign trade-related registrations. A business licence alone may not be enough for full import/export operations.

Import/export setup may include:

• foreign trade operator filing where applicable;
• customs registration;
• electronic port registration;
• foreign exchange registration;
• export tax refund setup if applicable;
• commodity inspection or quarantine registration where needed;
• specific licences for regulated products;
• coordination with customs brokers and logistics partners.

Step 11. Employment, Work Permits and Social Insurance

If the company hires staff in China, it must follow employment, payroll, tax and social insurance requirements. If a foreign founder or manager plans to work in China, a work permit and residence permit route may also be required.

Employment setup may include:

• employment contracts;
• payroll system;
• individual income tax withholding;
• social insurance registration;
• housing fund registration where applicable;
• work permit planning for foreign employees;
• residence permit support;
• HR policies and internal rules.

Step 12. Ongoing Accounting and Compliance

Registering a company is only the beginning. After registration, the company must maintain accounting, tax filing, annual reporting, bank compliance, licence renewals, payroll and document retention. A company with no activity may still have filing obligations.

Ongoing compliance may include:

• bookkeeping;
• VAT filing;
• corporate income tax filing;
• individual income tax filing for employees;
• social insurance filings;
• annual report;
• foreign investment information reporting where applicable;
• bank account maintenance;
• licence updates;
• changes to address, legal representative, shareholder or business scope;
• contract, chop and invoice control.

Company Registration for European Entrepreneurs

European clients often register companies in China for sourcing, import/export, consulting, quality control, procurement, logistics coordination, brand representation or supplier management. For clients from Poland, Germany, the Netherlands, Czech Republic, the Baltic countries and the Balkans, the main question is usually not only how to register the company, but how to make it useful for cross-border business.

European clients should clarify:

• whether the company will buy goods from Chinese suppliers;
• whether it will export goods from China;
• whether it will invoice Chinese or overseas clients;
• whether it needs import/export rights;
• whether it needs VAT fapiao issuance;
• whether it will hire staff in China;
• whether the founder needs a work permit;
• whether the company will own stock or use warehouses;
• whether it will provide services or trade goods;
• whether it needs a real office or only a registration address.

Company Registration for African and Latin American Clients

African and Latin American businesses may register a company in China to manage procurement, control suppliers, consolidate goods, export products, communicate with factories, inspect cargo or build direct access to Chinese supply chains.

These clients often need:

• procurement office in China;
• supplier management structure;
• warehouse and consolidation support;
• export documents and logistics control;
• Chinese bank account for local payments;
• quality inspection process;
• legal contract structure with suppliers;
• staff or representative on the ground;
• long-term sourcing and export operations.

Common Mistakes When Registering a Company in China

How Myron Trade Helps with Company Registration in China

Myron Trade helps clients approach company registration as a business project, not just paperwork. We help clarify the real business model, choose a practical structure, coordinate with local registration agents, accountants and service providers, and connect company formation with sourcing, export, import, logistics or local operations.

Example: European Sourcing Company Opens a WFOE in China

A European entrepreneur wants to manage procurement from China for clients in Poland and Germany. The company needs to search suppliers, sign contracts, pay Chinese vendors, inspect goods, arrange export and issue invoices for services.

Before registration, the business scope is planned around procurement support, trade, consulting and possible import/export activities. The registered address, capital, bank account, tax setup and accounting support are chosen according to the real operating model.

Example: Latin American Distributor Creates a China Procurement Office

A Latin American distributor buys goods from several Chinese suppliers and wants better control. Instead of relying only on agents, the company decides to create a China structure for supplier management, inspection, consolidation and export coordination.

Myron Trade helps the client understand what type of company may fit the operation, what registrations are needed for trade support and how to connect the company setup with warehouse, quality control and logistics.

Example: Foreign Brand Wants to Sell Products in China

A foreign brand wants to sell goods inside China. The company needs to decide whether to work through a distributor, register its own Chinese company, use an import agent or build a combination of import, warehousing and local sales.

In this case, company registration is only one part of the strategy. The brand also needs import requirements, Chinese labels, local tax setup, distributor agreements, trademark protection and sales channel planning.

China Company Registration Checklist

What Information Should You Send for Company Registration Consultation?

To evaluate the right company setup route, send us basic information about your business and goals in China.

• your nationality or country of shareholder company;
• whether the shareholder will be an individual or company;
• planned city in China;
• business activity;
• whether you will trade goods or provide services;
• whether you need import/export rights;
• whether you will hire staff;
• whether you need a work permit or visa support;
• whether you need a real office or registration address;
• expected monthly turnover;
• whether you need fapiao for Chinese clients;
• whether you will work with Chinese suppliers;
• whether you will sell inside China or export from China;
• whether you already have Chinese partners, clients or suppliers.

FAQ: Registering a Company in China

This material was prepared by Myron Trade for European, African, Latin American and international entrepreneurs and companies considering company registration, WFOE setup, trading operations, import/export activity and business presence in China. This article is for general information and should not be treated as legal, tax or accounting advice.