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Open a Startup in China

Open a Startup in China

Interested in the conditions of opening a startup in China? You are invited to talk to our company formation agents in China and solicit information and guidance right away. We are here to help you create a business plan and to help you with the incorporation formalities of company formation in China.

 Quick Facts  
 Business entities suitable for a startup in China Wholly Foreign-Owned Enterprise (WFOE) in China 

Approvals issued by 

 Chinese State Administration for Industry and Commerce

 Legislation for startups in China

 Company Law in China

 Minimum share capital for LLC CNY 30,000 
 Limitations to be considered “startup”

 Must have no more than 300 employees and annual income and total assets not exceeding CNY 50 million

 Local partner

 Not required

Application for a business license 

 We can manage the paperwork for business license applications.

 Trademark registration

Advised. Our local specialists can help. 

Local bank account 

 Must be opened when depositing the minimum share capital.

 Tax registration  (YES/NO)  YES
 Business address solicited  (YES/NO)

YES 

 VAT reduction

 Available for micro, small, and medium-sized enterprises (MSMEs) in China, under certain conditions.

 Other policies for Chinese startups

 70% deduction on taxable income for qualified startups in China

 Top cities for opening startups in China

– Shanghai,

– Beijing,

– Shenzhen, etc. 

 We offer company formation services for startups in China Our team of local agents can handle the formalities and procedures for opening startups in China. 

What is the proper business structure for a startup in China?

WFOE or the Wholly Foreign-Owned Enterprise is dedicated to international investors in China and it is the best option for a wide range of activities. Your startup in China can run under the rules of a WOFE in China (sometimes used WFOE by foreign investors) that can be established with a minimum share capital or CNY 30,000 deposited in a local bank account. We can provide complete services for international entrepreneurs who want to open companies in China, so you should address your requests to our specialists.

Steps for opening a startup in China

Once you decide on business formation in China, it is recommended to have a specialist by your side and let him/her create a good business plan for your startup. Here are a few steps to consider when opening a startup in China:

  1. Choose the business structure – the WFOE is the structure that suits most of the business needs of an international investor and can be chosen for a startup.
  2. Create a business plan – this task can be easily handled by our specialists if you tell us what kind of activities you want to develop with Chinese startups.
  3. Decide on the location – China is a large country, but one should choose the region or the city in which he/she can develop.
  4. Respect the local laws – Specific licenses and permits might be necessary for your future operations. These are issued by the State Administration of Industry and Commerce in China.
  5. Register for taxation in China – this is required for companies in China.
  6. Obtain the company seal – you are ready for business and the Chinese tech startups can commence their activities.

All the above-mentioned steps are part of the company incorporation in China process. Complete support and guidance can be offered by one of our specialists in company formation in China. We are at your disposal for creating a business plan for your future Chinese startups.

Is document notarization requested for Chinese startups?

Foreign citizens who want to open a startup in China must consider all the formalities related to documents, their translation, and notarization. Starting from this idea, it is good to know that the Chinese State Administration for Industry and Commerce can refuse your request to set up a company in China if the documents are not translated and legalized. In certain cases, the passport also needs to be translated for it to be accepted by the relevant authorities. Otherwise, Chinese authorities can prolong the process of company formation in China and even refuse in certain cases, precisely because of non-compliant documents. Therefore, you should consider notarizing and legalizing the documents, if the relevant authorities ask you to do so. In this sense, we recommend you collaborate with our local specialists to fulfill all the requirements when you want to open Shenzhen startups.

Certain business aspects you should consider when opening a startup in China

China is a very attractive destination for international entrepreneurs looking for business expansion in various sectors of interest. In the case of Chinese startups, it is recommended to take into account all the procedures, but also challenges that might occur. Let’s review some of them:

  • Depending on the activities you are going to develop, you may need a business license. For example, if you want to sell products and services, it is recommended to check beforehand what kind of business license is required.
  • To avoid business culture differences as much as possible, it is recommended to do a market test before implementing services and products with the help of a startup in China. Thus, you can understand aspects such as client service, business communication with local partners, etc.
  • You can face problems if you don’t know some important aspects of China’s economy, for example, and so you can’t develop your desired business. Rather try to inform yourself and even call a business consultant before any initiative.
  • It is important to consider the target audience and the niches in which you can be active with Chinese startups. Researching and testing are always great options before opening a company in China.

Here is extra information about startups in China:

Do I need a local partner for Shenzhen startups?

Even though it is not an obligation, you can consider having the support of a local partner and understand even better the business climate and the socio-cultural environment of China. Some partners might open paths to all sorts of collaborations that can help your startup grow, so bear in mind this kind of support. Contact us if you are interested in Shenzhen startups or Chinese tech startups.

Interested in opening a WFOE in China? Our local company formation representatives in China can guide you in this endeavor and can take care of the aspects related to the preparation of documents, the application for the desired business license, the opening of a bank account, the supply of a registered address, and more. Being the most popular business structure, it can be easily established by foreign investors who want to expand their portfolio in China. Here is a video presentation about startup registration in China:

A website for your startup in China

Shenzhen startups need a solid marketing and promotion plan to create awareness in the market right from the beginning. Even if it is a competitive market, there is always room for new businesses that can be sustained and promoted with the help of a website. The online environment is quite appealing in China, and most businesses are listed on the internet, whether on varied sale platforms or dedicated websites. If you want to create a website for your startup in China, you can talk to us for assistance and recommendations.

Why make investments in China

China is home to a large number of businesses and successful companies, whether established by local entrepreneurs or by international investors. China is a great market with worldwide connections in terms of business and partnership, so numerous investors already enjoy the profits generated in this country. For instance, more than 60,000 foreign companies were registered in China in 2018 solely. Being the largest FDI recipient in the world, the country continues to offer great business opportunities and conditions to all interested in operating in complete confidence and competitiveness. You can analyze the following facts and figures that show the business direction of China:

  • In 2022, the total GDP reached around CNY 121 trillion.
  • Around CNY 57 trillion represented the total fixed asset investment registered for the same year.
  • The total real estate investment in China in 2022 was around CNY 13 trillion.
  • A growth of about 7.7% in imports and exports, representing CNY 42 trillion was registered in 2022.

Working with our local agents

You have at your disposal the services offered by our specialists in company formation in China. They have experience in the field and can take care of the necessary documents required by the authorities, regardless of the chosen business structure. In addition, certain business matters may seem complex for foreign entrepreneurs, especially if they have not had to deal with this territory before. In addition, our agents collaborate with the local authorities for company incorporation in China and can make the whole process a simpler one. We offer customized packages for foreign and local entrepreneurs who want to open a business in China, including those interested in Chinese tech startups.

Besides helping with opening a startup in China you can also ask for the services of our accountant in China. International entrepreneurs interested in startups in China can contact our team of company formation agents in China for information and support.