Company Registration In China

The steps involved in company registration in China are briefly discussed in this article along with the criteria, business entities, costs, and documents.

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Company Registration In China In 2023-24

Many businesses are looking to set up local manufacturing facilities in China because of the low cost of labor. Additionally, the sourcing of different kinds of raw materials and products is less expensive when compared with other nations. 

company registration in china

Therefore, companies are more inclined to invest in China. The resources available in China are extremely competitive, including global infrastructure and opportunities for research and development. With an annual GDP growth of 9.5% through 2018, China’s economy is among the fastest-growing in the world.

China is considered to be the second biggest economy in the realm with a GDP of over USD 14 trillion. Beyond that, China has the largest number of people in the world, accounting for 1.34 billion. China is situated in close proximity to emerging economies like Indonesia along with India. 

In this article, we will be going to discuss more in brief about the process of company registration in China and the various documents that are required for China Company Registration. 

Procedure for China Company Registration

The procedure to register a company in China typically includes the following steps:

Step 1:- Choose a company name and have it pre-approved by the relevant government agency.

Step 2:- Obtain a business license and register with the regional Administration for Industry and Commerce (AIC). This will expect numerous documents, such as a company charter and proof of registered capital.

Step 3:- Register for taxes with the State Administration of Taxation (SAT) and obtain a tax registration certificate.

Step 4:- Register for social insurance with the regional human resources and social security bureau.

Step 5:- Register for statistics with the National Bureau of Statistics (NBS).

Step 6:- Apply for any necessary licenses or permits required for the specific industry in which the company operates.

It’s worth noting that the process of company registration in China can be complex and time-consuming, so be sure to have proper guidance.

Documents Required for Company Registration in China

The documents required for company registration in China include:

  1. A business license application form
  2. A company name verification certificate
  3. A firm charter or articles of association
  4. Proof of registered capital, such as a capital verification report
  5. ID or passport copies of the company’s legal representative and all shareholders
  6. Lease agreement or proof of ownership for the company’s registered address
  7. Approval certificate for the company’s industry or business scope
  8. Tax registration certificate

It is crucial to note that certain requirements for company registration in China may differ depending on the category of company, location, and industry.

Different Types of Company Structures Company Registration in China

These are the kinds of structures for companies that foreign entrepreneurs are able to set up and then establish in China.

Here are the various entities of company registration in China:

China’s Wholly foreign-owned Business (WFOE) 

The WFOE is an entity legal in nature and is an LLC that has ownership from outside. It permits foreign businesses to operate business regionally in China with consumers, buyers, and partners. The liability of Directors and Shareholders is restricted only to a specific amount.

Joint Venture Companies (JVC) 

Typically a JVC firm is established by foreign investors. A foreign investor as well as an investor from China Chinese shareholders signed the JVC agreement. The Chinese shareholder will own an appropriate proportion of equity in the business. 

Joint ventures enable foreign businesses to benefit from the local partner as well as an international network. The JVC is able to conduct business like a normal Chinese firm according to the terms and conditions that are stipulated in the partner agreement that govern the sharing of profits, control over operations, and ownership of the technology.

Resident Office (RO) 

The Chinese government allows foreign firms to establish representation offices across China. The RO doesn’t permit foreign firms to carry out direct business activities in China. The activities have to be conducted in conjunction with the parent business overseas with the help of an associate in China. However, an RO in China provides the security of hiring and paying a local team.

Sales Office

If foreign businesses are looking to increase their control over their staff, i.e. their own HR, legal and administrative departments, and HR departments, the China Sales Office is the best type of structure.

It is also worth noting that different types of companies can be registered in China, such as limited liability companies and joint stock companies, and each type has its own set of eligibility and regulations.

Eligibility for China company registration

To register a company in China, the following eligibility criteria must be met:

  1. The firm should possess a legitimate representative who is a Chinese citizen.
  2. The firm should possess at minimum one director who is a Chinese citizen.
  3. The firm should possess a registered address in China.
  4. The firm should possess a business license published by the applicable government department.
  5. The firm should possess a certain amount of registered capital, which varies depending on the type of company being registered.
  6. The firm should also comply with other regulations and laws, such as labor laws and environmental laws.

It is also worth noting that different types of companies can be registered in China, such as limited liability companies and joint stock companies, and each type has its own set of eligibility and regulations.

Various Taxes on China Company Registration

various taxes on china company registration

There are several taxes to register a company in China are required to pay, including:

  • Corporate Income Tax: This is a tax on the earnings earned by a firm. The current rate is 25%.
  • Value-Added Tax: This is a consumption tax applied to the value added during the production or sale of goods and services. The current rate is 17%.
  • Business Tax: This is a tax on the income earned by companies providing taxable services. The current rate is 3%.
  • Land Appreciation Tax: This tax is imposed on the appreciation in the value of land used for business purposes. The rate varies depending on the location and use of the land.

Other taxes such as individual income tax, withholding tax, stamp duty, and property tax may also apply depending on the company’s business activities and location related to your company registration in China.

Cost to Register a Company in China

The cost to register a company in China varies depending on the type of company and the location in which it is being registered. Generally, the costs include government fees, legal and accounting fees, and the cost of setting up a registered address and obtaining any necessary licenses or permits. 

Some estimates suggest that the total cost to register a company in China can range from around RMB 30,000 to RMB 100,000 or more.

Why register a company in China?

reasons to register a company in china

There are several reasons why one might choose to register a company in China.

Some of the most common reasons include:

Access to a large market

China has a population of over 1.4 billion people and a rapidly growing middle class, making it an attractive market for many businesses.

Low labor costs

China has a large pool of low-cost labor, which can help businesses to reduce costs and increase profits.

Government support

The Chinese government provides various incentives and subsidies to foreign companies that invest in the country, making it an attractive destination for foreign investment.

Supply chain advantages

China is a major manufacturing hub, and many companies choose to register there in order to take advantage of the country’s extensive supply chain networks.

Strategic location

China is strategically located in Asia, which makes it a key market for many businesses looking to access other Asian countries.

However, it is important to note that doing business in China can also come with many challenges and risks, such as regulatory compliance, intellectual property protection, and cultural differences.

Advantages of China Company Registration

There are several advantages to registering a company in China, including the following:

  1. China has the largest population in the world and a rapidly growing middle class, providing a vast market for goods and services.
  2. The Chinese government has implemented policies to encourage foreign investment, such as tax incentives and streamlined registration processes.
  3. China has a large pool of low-cost labor, which can help keep manufacturing costs low for companies operating in the country.
  4. China is a major global supplier of goods and components, making it easy for companies to source materials and components for their products.
  5. China’s companies are growing rapidly, and partnering with them can lead to a lot of growth opportunities.
  6. China has invested heavily in infrastructure, including transportation and logistics, which can make it easier for companies to move goods and conduct business in the country.


As China’s economy continues to grow rapidly, more and more foreign investors are becoming interested in expanding their businesses there. As a result, China is recognized as a country with expanding business potential. As the government encourages foreign investors to establish businesses in China, the country also builds a business-friendly atmosphere. However, the country offers a number of benefits for foreign companies looking to establish operations, such as access to a large market, a well-developed infrastructure, and a skilled workforce.

It’s recommended to hire a professional from Odint Consultancy to guide you through the process of company registration in China.


The first step is that the person applying for registration should select the appropriate representative for the procedure to be smooth. Once this has been completed the applicant has to keep his or her name and the business. The documents must be completed and an authorized certificate is needed.

China is identical to the prevalence of nations in that it maintains a register of companies.

Yes, it’s required to fulfill the required compliances like filing the required information. This is a mandatory step that must be obtained by the individual applying.

Taxes of 15% would be adequate for areas such as Hainan, Guangdong, and Fujian.

Yes, there is a tax withholding for dividends, interests, and royalties. The tax is charged at the rate of 15%

Yes, the Chinese government has limits on investments from abroad in China.