What Are the Key Steps to Set Up a Company in China?

Establishing a business in China involves a structured, multi-stage process:

1. Market Research – Validate demand, analyze competitors, identify partners, understand regional differences.
2. Choose Entity Type – WFOE (Wholly Foreign-Owned Enterprise, full control), JV (Joint Venture, local partner required for restricted sectors), RO (Rep Office, limited to liaison/market research). Each has distinct liability, tax, control implications.
3. Name Pre-Approval – Submit Chinese name options to AMR (Admin for Market Regulation).
4. Business License – File: articles of association, lease, legal rep ID, capital commitment, scope of operations. Receive "Five-in-One" license (unified social credit code).
5. Chops (Seals) – Carve company, finance, legal rep, invoice, contract chops—legally mandatory for operations.
6. Bank Accounts – Open RMB basic account + foreign capital account (for registered capital injection).
7. Tax Registration – VAT, CIT, IIT, customs (if trading). Golden Tax System invoicing.
8. Social Insurance/Housing Fund – Register employees (mandatory: pension, medical, unemployment, injury, maternity + housing provident fund).
9. Industry Permits – Food, pharma, tech, education, finance need extra licenses (ICP, FDA, etc.).
10. Ongoing Compliance – Monthly/quarterly filings, annual audit, annual report (Jun 30), transfer pricing, data/CSL/PIPL compliance.

Timeline: 2–6 months typical. Strongly advised: Engage a China-experienced legal/consulting firm (e.g., Dezan Shira, Hawksford, local CPA/law firm). Regulations shift frequently; local nuance is critical.