Foreign-Invested Company Registration in China

A WFOE is funded 100% by the foreign investor, has full independent decision-making power, and does not share profits with a Chinese partner. It is the most common form of foreign-invested enterprise today. A JV is funded jointly by the foreign and Chinese parties, who share the risks; it suits scenarios where foreign investment access is restricted in a particular sector or where a strategic partnership needs Chinese resources such as qualifications or channels. Under the 2020 Foreign Investment Law, foreign enterprises now receive national treatment in all sectors outside the negative list, and a WFOE is the simpler, more flexible choice for most sectors.

It depends. If a foreign individual is the shareholder, they usually need to be present to sign the business registration documents, but they can instead issue a notarized power of attorney and appoint an agent, avoiding an in-person signing. If an overseas company is the shareholder, the overseas company can sign notarized documents (certificate of incorporation, board resolution and so on) and mail them in; the shareholder does not need to be present. For bank account opening, the foreign legal representative generally needs to appear once (some banks support video verification). OTGEO provides end-to-end agency service and can help you complete registration remotely.

About 1–3 months in total, depending on the earlier steps: (1) name check, 1–3 working days; (2) foreign investment filing, completed on the spot or within 5 working days; (3) business registration, about 5–10 working days with complete documents; (4) seal making, 1 working day; (5) bank account opening, about 1–2 weeks (appointment and in-person verification required); (6) tax registration, about 5–10 working days. The total is about 1 month, excluding notarization and legalization of overseas documents. If overseas documents need notarization, legalization and translation, add 2–4 weeks.

Under the 2020 Foreign Investment Law, foreign-invested companies use a subscribed capital system with no minimum registered capital (special sectors such as finance, education and healthcare have their own entry thresholds). Set registered capital according to actual operating needs: not too high, which complicates any future capital reduction, and not too low, which affects the company's credit and bidding eligibility. Note that subscribed capital does not mean no contribution is required; shareholders must pay in the capital within the period set in the articles of association. OTGEO can advise on the registered capital amount and contribution plan.

Under the Special Administrative Measures for Foreign Investment Access (Negative List), 2024 edition, prohibited sectors include news and publishing, radio and television production, and internet cultural operations. Restricted sectors include value-added telecommunications, insurance, securities and education, where Chinese control or a cap on foreign shareholding is required. Sectors outside the negative list follow the principle that anything not prohibited is permitted, and foreign investors receive national treatment. The free trade zone version of the negative list is shorter and more open. Before registering, ask OTGEO to confirm whether your business scope falls into a restricted category.

After registration, the company must first apply to the Foreigner Work Permit Management Service System for filing as an employer qualified to hire foreign nationals. Once the filing is approved, the company can apply for Foreigner's Work Permit Notifications for foreign legal representatives, executives or employees. With the notification, the foreign national can apply for a Z visa at a Chinese embassy or consulate. After entry, they complete the medical examination and temporary residence registration, then collect the physical Foreigner's Work Permit card and the work-type residence permit. OTGEO provides a full chain of services covering company registration, employer qualification, work permit and work visa.