Large companies worldwide can choose to set up their operations in China through branches. For the incorporation, it is recommended to ask for support and guidelines from our specialists in company formation in China:
| Quick Facts | |
|---|---|
| Applicable legislation | For foreign countries |
Best used for | – banking, – insurance, – financial activities |
Minimum share capital | No |
| Time frame for the incorporation (approx.) | Around 2 months |
| Management | Local, but not mandatory |
| Legal representative required | Yes |
| Local bank account | Yes |
| Independence from the parent company | Dependent on the parent company |
| Liability of the parent company | Full liability on the branch office’s debt and obligations |
| Corporate tax rate | 25% |
| Possibility of hiring local staff | Yes |
Table of Contents
What is the definition of a branch?
A branch refers to a type of structure that is dependent on the parent company (it does not have separate legal personality). Some of its characteristics are:
- it is an extension of the parent company;
- the parent company is fully responsible for the activities carried out by the branch in China;
- it must carry business activities that must be approved by the parent.
When is it recommended to set up a branch in China?
The branch is ideally suited for foreign investors in the following cases:
- the parent company already operates through branches in other countries;
- the investors plan to expand their business in China in more cities;
- the entrepreneurs plan to carry out business operations in China that are in line with the activities developed by the parent company;
- the branch is also a more cost-effective solution when setting up a company in China, compared to the costs associated with other legal entities.
What are the main costs associated with setting up a branch in China in 2026?
Even if the branch office is not a separate legal entity, it must go through similar procedures as the ones applicable for the registration of a legal entity, such as a Wholly Foreign-Owned Enterprise (WFOE) in China. These legal formalities imply various costs and fees. In the list below, you can discover some of the fees you should expect to pay if you hire our team to assist in opening a company in Chinaas a branch:
- registering a trade name – $100;
- the translation of corporate documents for the purpose of completing the process of company formation in China – $800;
- opening a bank account – $200;
- completing tax registration formalities – $150;
- immigration formalities for investors and family members – the fees vary based on the type of visa ($500, $1,000).
There are other costs involved, including ongoing expenses, and for a consultation on this subject we recommend you address our specialists in company incorporation in China, who can provide the necessary support.
Here is an infographic that explains more:
Do I need an office for a branch in China?
Yes, branches in China need to have a business address in the first place. In other words, a traditional office for your company in China is necessary.
What is the minimum share capital for a branch in China in 2026?
There is no minimum share capital requirement for a branch in China.
Is tax registration mandatory for branches in China?
Yes, all companies in China must register for taxation and branches make no exceptions. Tax compliance and management can be discussed with our company formation agents in China who can enroll your branch in China with the National Tax Bureau.
Can branches have import and export activities in China?
No, branches in China cannot develop import and export activities on their own. Specific business rules in China can be explained by our agents.
Can I sign contracts while having a branch in China?
Yes, a branch in China works as any kind of company with activities developed locally or abroad. Signing contracts is not restricted, yet one must observe the general and local regulations that apply.
Is a branch a cost-effective option in China?
Yes, compared to a subsidiary, a branch is cost-effective and often the choice of international entrepreneurs interested in business in China. You can talk to our company formation agents in China and find out more about the operational costs in this country.
Here is a video about how you can open a branch in China, helped by our consultants:
Are accounting services required for branches in China?
Yes, it is recommended to hire an accounting firm in China and benefit from tailored services to the business needs involving a branch office. Annual financial statements, tax compliance, bookkeeping, and payroll are the main accounting services required for a business in China.
How much does it cost to benefit from accounting services in China?
Our consultants, although they are specialized in offering services for company incorporation in China, can also provide other corporate services necessary once a legal entity starts operating. Therefore, investors can employ our team to provide a variety of ongoing business services, some of which refer to the accounting aspects of a company. In this sense, we mention the following:
- monthly accounting and tax filing services – they vary from USD 120 to USD 280 per month depending on the volume of documents to be processed (please mind that these prices are available for small scale companies);
- for large companies, which can also be the case of a branch office in China, the prices for the same services (monthly accounting and tax filing) vary from USD 200 to USD 400;
- services concerning VAT refunds costs between USD 100 to USD 400 depending on the nature of the service;
- annual statutory audits and tax reports cost USD 900.
Can your team assist me in employment matters for my branch?
Of course, our clients can receive assistance in any matter concerning employment. We can help for:
- drafting and signing employment contracts;
- applying for work visas;
- employing suitable workforce;
- complete payroll services;
- litigation cases arising from the work environment;
- getting information on the employment law, etc.
Do I need a representative for my branch in China?
It is required to have a local representative for your branch in China. One of our company formation agents in China can represent you and explain the business regulations in this matter.
Is it difficult to open a branch in China in 2026?
No, the formalities for opening a branch in China are relatively straightforward if you respect the general and local business rules.
Can foreign investors own more than one company in China?
Yes, investors who plan to set up a branch in China in 2026 have the right to register more businesses here.
In what other Asian countries can you provide legal assistance?
In case you want to set up a company elsewhere, for example in Taiwan, we can put you in contact with our partners. If you are considering choosing another Asian country for extending your business through a branch office, for example India, you should know that the requirements are similar. For more details about establishing a company or a branch office in India, please visit IndiaCompanyFormation.com.
If you would like to know more details about how to set up a branch in China, please do not hesitate to contact our team.
