How Can Foreign Investors Establish a Company in China?

I. Company Establishment

(1) Shareholding Structure

Foreign investors may establish enterprises in China through:

  • An overseas company as the shareholder (wholly foreign-owned enterprise, joint venture, or Sino-foreign joint venture); or Individual foreign shareholders (wholly foreign-owned enterprise, joint venture, or Sino foreign joint venture).
  • Unless otherwise required by laws or regulations for specific industries, there is generally no minimum registered capital requirement.

(2) Personnel Arrangements

  • Foreign nationals may serve as legal representative, executive director, general manager, supervisor, and other senior management positions in a foreign-invested enterprise; there is no requirement to appoint Chinese nationals.
  • Under the latest amendments to the Company Law, smaller enterprises or those with fewer shareholders may choose not to establish a supervisors and instead appoint a single supervisor, who may also be a foreign national.

(3) Establishment Procedures

The establishment process has shifted from an approval system to a filing (reporting) system, significantly simplifying procedures.

(i) Individual Shareholder Structure (Foreign Natural Person)

  • Provide a color scan of the passport (with Chinese translation). If issued overseas, the translation must be stamped by a translation agency or confirmed by the shareholder;
  • Lease a physical office or use a compliant business secretary address (note: certain industries such as catering and education require an actual business premises);
  • Execute incorporation documents;
  • Registration is typically completed within approximately three working days (from submission of complete materials to issuance of the business license; excluding preparation and bank account opening time).
  • Opening a corporate bank account generally takes about one week, and the legal representative must be present in person.

(ii) Corporate Shareholder Structure (Foreign Company)

  • Provide corporate qualification documents of the foreign shareholder (notarized locally; if the country is a member of the Hague Convention, an apostille is required);
  • Hong Kong is not subject to apostille requirements; documents from Hong Kong companies must be notarized by China-appointed notaries and transmitted accordingly;
  • Domestic registration is typically completed within approximately three working days, and bank account opening takes about one week.
  • Reference List of Required Documents: 2/6
  • Application for establishment registration of a foreign-invested limited liability company;
  • Articles of Association; Shareholder qualification or identification documents; Appointment documents and identification of legal representative, directors, supervisors, and manager;
  • Proof of business premises; etc.
  • Documents in foreign languages must be accompanied by Chinese translations.

II. Trademark Registration

  • To enter the Chinese market, it is advisable to register trademarks in China.
  • The trademark registration process typically takes 8–12 months:
  • Formal examination: ~1 month (issuance of acceptance notice);
  • Substantive examination: 4–8 months;
  • Publication period: 3 months.

III. Relative Licenses

  • After obtaining a business license, a foreign-invested enterprise must, if its business scope involves specific industries, apply for industry-specific licenses from the relevant competent authorities in accordance with industry regulations before it may lawfully carry out its operations.

IV. Work Permits for Foreign Executives in China

  • If a company intends to employ foreign executives on a long-term basis in China, it may apply for a Foreigner’s Work Permit. The work permit information has been integrated into the social security card, enabling a “single-card” system for access and administration.

(1) Employer Requirements

① Legally established within China, with no record of serious violations or dishonesty;

② The position offered must correspond to roles for which suitable domestic candidates are unavailable and must comply with national regulations;

③ Salaries paid to foreign employees must not be lower than the local minimum wage;

④ Where required, prior approval from competent industry authorities must be obtained.

(2) Applicant Requirements (Foreign Executives)

① At least 18 years old, in good health, with no criminal record;

② Possess the necessary professional skills or knowledge for the position;

③ The role must meet China’s economic and social development needs, typically involving urgently needed or scarce expertise.

Contact Information:

Welcome foreign enterprises and investors interested in investing in China, establishing a company in China, or setting up factories, technology enterprises, engaging in trade or cross border e-commerce with Chinese companies. Please feel free to contact us.

Yanmei CHE (Michelle) P.R.C Lawyer 
Partner of Beijing Dacheng Law Offices, LLP (Shenzhen)
Mobile: what’s app: +852 9511 7818 +86 185 6626 7282 (wechat)
Email：yanmeiche@126.com
Address: 12F, 20F, 21F, 26F, Block A, Shenzhen International Innovation Center,No.1006，
Shennan Boulevard, Futian District, Shenzhen, China.