Setting up a holding company in China is subject to varied requirements, and to ease the registration process, it is advisable to speak toour team of company formation agents in China.
| Quick Facts | |
|---|---|
| Legal entities used | Wholly Foreign-Owned Enterprise (WFOE) |
Who issues the approvals for holding companies in China? | State Administration for Industry and Commerce (SAIC) |
Incorporation method | With the Chinese Trade Register |
| Incorporation time | Around 1 week |
| Advantages | Great for real estate investments, for portfolio expansion, protected by double tax treaties, etc. |
| Main Requirement | Must have a legal address in China |
| Resident director required (YES/NO) | NO |
| Minimum capital | USD 1 |
| Taxation | 5% withholding tax on distributed dividends in Hong Kong, 8.25% as profit tax for the first USD 2 million, and no capital gains tax for holding companies registered in Hong Kong |
| Control | Controlling and owning assets, like stocks in other companies, and real estate through a holding company in China |
| Accounting and reporting | Filling tax returns annually, statutory audits, preparing annual financial statements, etc. |
| Number of double taxation treaties | Around 114 |
| Tax minimization methods available (YES/NO) | YES |
| Best city for opening holding companies in China | Hong Kong |
| Choosing our Chinese agents | We can manage the formalities and procedures of opening a holding company in China, at affordable costs. |
| Does a foreign investor need a Chinese partner for opening a holding company? | NO |
Is a corporate shareholder allowed to start a holding company in China? (YES/NO) | YES |
Company secretary needed (YES/NO) | YES |
| Choosing the proper jurisdiction for holding companies in China | Considering the logistical, operational, taxation, and economic requirements |
| Limiting risks for a holding company | Through the subsidiaries |
| Expansion of a holding company in China | Through a simple stock purchase in the public market |
| Reducing taxable profits | Holding companies in China can cut the taxable profit of the subsidiary companies by invoicing them in respect of their operations. |
| Traveling requirements | No need to travel to China to open a holding company. Our Chinese agents can represent clients with a power of attorney when incorporating a business here. |
| Time frame to open a bank account for a holding company in China | Around 7 weeks |
| Is multi-currency allowed when opening a bank account for a holding company in China? | Yes, business owners can make financial transactions in various currencies. |
| Public register of directors and shareholders of a holding company in China | Required |
| Statutory audit always needed | In some special administrative regions (Hong Kong, Macau, etc.) |
| Can I hire foreign employees for a holding company in China? | Yes, business owners can hire foreign staff, however, the immigration rules must be followed. |
| Virtual office packages available for our customers | On request |
| Other services we offer for holding company owners in China | – accounting, – immigration-related services, – business follow-up, and more |
Table of Contents
What is a holding company in China?
A holding company refers to a legal entity that is incorporated under theChinese law by following the standard process for company formation in China. The difference between the holding and any other company type is that the holding is set up for the purpose of owning and managing other businesses, by having share rights in the said companies.
What is the purpose of holding companies in China?
The single purpose of a holding company in China refers to the management and control of the shareholdings in other companies with activities in China. Through this type of structure, the parent company (the holding) can maximize its operations while applying more efficient tax optimization methods. The holding also represents a way through which investors can reduce their investments risks.
What are the benefits of a holding company in China?
Among the advantages of a holding company in China, the following are important:
- foreigners can enlarge their portfolio and profits with a holding company in China;
- this is a legal entity which has an easy incorporation procedure;
- the foreigner’s assets are completely protected through such business form;
- the double taxation treaties signed by China are also available for such types of companies.
What are the main elements of the Chinese holding registration?
If you plan to open a holding company in China, during the registration process you will need to take into consideration the following elements:
- shareholding – the company can be set up by only 1 shareholder, who can be of any nationality (the company can have as a shareholder another legal entity or an individual);
- directors – it is necessary to appoint 1 director (the shareholder has the right to be appointed as the company’s director);
- company secretary – it is mandatory to have a company secretary (residency requirements apply);
- registered office – during the process of company registration in China, investors must find a suitable location for their holding company, as it is necessary to have a registered address in this country.
What company type should I choose for the incorporation as a foreigner?
It is recommended to set up a limited liability company that can take the form of a wholly owned foreign enterprise (WFOE). This simply refers to a local legal entity that has full foreign ownership, which can be the case in many situations where foreign investors are involved.
Here is an infographic that explains how a holding company can be registered in China:
What is the cost of registering a WFOE?
Our consultants are specialized in company formation in China for any company type. If you want to register the WFOE, please mind that in 2026 we charge a fee of minimum USD 1,200. If you want to incorporate the same entity in the region of Guangzhou, we charge USD 1,000 (the same fee is applied for the region of Hong Kong).
How long does it take to register a holding?
The whole registration process can take up to 3 months, depending on the formalities and procedures. You can request the services of our local representatives. Please mind that the process of company formation in Chinacan be completed in around 5 to 8 days, but there are other legal procedures to comply with, which is why the overall duration can increase to several months.
You can also watch the video presentation we have prepared on holding companies in China:
In what regions should I register a holding?
Another aspect that is taken into account when opening a holding company in China is the location itself. Incorporation can be made in any Chinese region, but it is known that Hong Kong is an appreciated financial hub and connects with Asian countries, plus other states quite easily. The Great Bay Area and the Hong Kong-Zhuhai-Macao Bridge are also very reputable regions.
What is the taxation system of holding companies in China?
In the list below, our consultantspresent some of the main aspects investors should consider about the taxation of holding companies in China:
- it is good to know that there is no income tax imposed on holding companies in China;
- in the case of non-resident foreign holding companies, the dividends paid by parent companies in China are subject to the withholding tax;
- the provisions of the double taxation treaties signed by China are also applicable to holding companies;
- tax minimization methods can be successfully applied to holding companies in China.
What reporting obligations do I have?
The owners of a holding need to prepare annual financial returns and annual financial statements. Audit obligations are also mandatory. Please refer to our team for in-depth details on the subject.
If you consider that a holding company suits your business needs in China, you can contactour company formation agents in China for comprehensive information and support in this matter.
