Opening a business in China: a step-by-step guide
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Opening a business in China takes between 3 and 5 days once the paperwork is complete, and even half a day in some districts. The real work involves gathering the three required documents: a residence permit issued by the police, an office lease, and a passport with a valid visa.
Two reasons motivate most foreigners to take the plunge. The first is the commercial impact: a registered Chinese company changes how your customers and suppliers perceive you. The second, even more tangible, is the work permit — it allows you to stay in the territory without having to leave and return every month.
I went through the process myself in Guangzhou. Here's what I wish I had known before I started.
What you need to have before you begin
A still valid visa
You must be physically in China, with legal status, for the entire duration of the procedure.
For French citizens, this means not exceeding the 30-day limit. If your stay reaches its limit midway through the process, simply leave the country and return: the 30-day limit will reset. A round trip to Hong Kong or Macau is sufficient.
Do not attempt to complete the application by overstaying your visa. The entire process relies on verifying your status, and overstaying will halt everything. [Internal link → article “Coming to China: the essentials”]
An address in China and a declaration of residence
This is the document no one sees coming. To open a business, you need a residence certificate issued by the police — the official registration of your place of residence.
Two ways to obtain it:
Rent an apartment. This is the solution if you plan to stay for a long time. You register at the local police station with your lease and passport.
Go through your hotel. Every hotel has a legal obligation to register its foreign guests with the police. The document already exists. The problem is that some hotels readily submit it, while others don't even know they can.
Practical advice: ask explicitly at reception and explain that it's for a business opening. Phrasing it that way often resolves the situation. If the hotel refuses, change hotels—don't waste three days negotiating.
An office: mandatory, and checked
You cannot open a company without a business address. This is not a mere formality: The police come every year to check that this office belongs to you..
This annual inspection makes all the difference when choosing a service provider. Your landlord can't be just anyone. They must exist, be reachable, and be able to attend the inspection. An address bought cheaply from an intermediary who disappears within six months will put you in a difficult position during the first inspection.
There are options in all price ranges, including... virtual offices perfectly legal. Payments are made annually.
The trap to be aware of. Some service providers charge foreigners significantly more, explaining that it is a "special address that grants the right to a work permit". That's wrong. There are no special addresses reserved for foreigners. They simply take advantage of the fact that you're unfamiliar with local prices. Get several quotes compared, ideally from someone who speaks Chinese.
Where to settle: geography determines the price
In Guangzhou, avoid the city center. Prices are significantly higher there than in the suburbs, for virtually the same registration fee. The suburbs are much cheaper.
You can also register in another province. And this is a point that many Europeans misunderstand: China operates like the United States or CanadaThere are several levels of government, and registration rules, thresholds, deadlines, and sometimes tax benefits vary from province to province. What is true in Guangzhou is not necessarily true in Shenzhen, Yiwu, or Shanghai.
The trick to saving money: the apartment-office
Some apartments are registered for mixed residential/office use. This gives you a single address that serves as both your residence and registered office. You pay one rent instead of two.
I didn't do it that way. The neighborhood I chose didn't offer it, and the apartments I visited were either too expensive, too far away, or just plain ugly. But if you find the right one, it's the easiest way to save money on the whole project.
The creation file
Once you have gathered the housing declaration, the office lease and the passport, you submit the application for creation.
The company name: be prepared to emphasize it.
This is the most difficult part. The name in Chinese must not already exist, and the administration also rejects names that are too similar to an existing one or contain certain terms.
After ten attempts, I told my agent: put whatever you want, as long as it's approved. She suggested a name I can't even pronounce, and it worked.
The important point to understand: Your Chinese legal name and your business name are two different things.The registered name appears on the license and official documents. For my clients, I use Ayla Business SolutionNo one ever asks me for my Chinese name.
So don't block your project for three weeks over a name: your brand is something else entirely.
The scope of activity, not to be rushed
One point that agents rarely mention: your license specifies the scope of activity (经营范围) of the company. He is the one who determines what you are allowed to charge.
Plan ahead from the start. Adding an activity later requires a license amendment, with associated procedures and costs. If you're involved in sourcing, add consulting, wholesale, import/export, and logistics while you're at it.
Timeframe and cost
Count 3 to 5 days between the submission of the complete file and the actual opening.
Taxes are paid in advance, for an amount of approximately €300[TO BE VERIFIED: this amount corresponds to the package price charged in Guangzhou and varies depending on the province and the agent]
| Job | Order of magnitude | Frequency |
|---|---|---|
| Office (virtual or physical, outside the city center) | Varies depending on the city | Annual, paid in advance |
| Agent fees (creation + address) | Negotiable package | Once |
| Prepaid taxes | ~€300 | At the creation |
| Monthly accounting | To be expected from the 1st month | Monthly |
| Mandatory annual report | To be expected | Annual |
What no one tells you about what happens next
The opening is the easy part. Here's what follows, and what you'd better have anticipated.
Your tampons (chops). You receive several official seals: company seal, financial seal, legal representative seal, and invoicing seal. In China, A stamp has more legal value than a signature.The person who holds it can bind the company. Do not entrust it to anyone, and do not leave it with your agent.
The business bank account. It begins after licensing; it's a separate process, and it often takes longer than the company's creation itself. Banks sometimes request to visit the office.
Monthly accounting. From the moment you open, you have tax returns to file, even if you have no business activity. You need a local accountant. This is a recurring cost that many only discover in the third month, along with late payment penalties.
The fapiao. The official Chinese invoice is a standardized document issued through the tax system. Your Chinese clients will request them, and your suppliers must provide them. This needs to be configured from the outset.
The closure. Closing a company in China is significantly longer and more expensive than opening one—expect several months for a tax audit. This isn't a reason not to proceed, but make sure you set up a structure you genuinely need.
Share capital. The capital you declare must be paid up within a regulatory timeframe. Declare an amount consistent with your actual business activity, not an impressive figure you will never deliver. [TO VERIFY: timeframe in effect since the revision of the Companies Act]
My agent, and a discount for you.
I completed the entire process with an agent whom I wholeheartedly recommend. She offers a package that covers the virtual address and the business registration.
You get a 10% discount if you mention my name. Her WeChat: [QR code / ID to insert].
Going through an agent is not essential in theory, but in practice, without fluent Chinese and without knowledge of local counters, you will lose more time and back and forth than what the agent costs you.
And what about the work visa?
This is the logical next step, and often the real reason for this whole process. As the legal representative of your own company, you have access to a work permit route that doesn't require the same experience and educational qualifications as a traditional recruitment process.
The procedure deserves its own article: [Internal link → “How to obtain a work visa in China”]
Frequently Asked Questions
How long does it take to open a business in China? Between 3 and 5 days once the complete application has been submitted. The actual processing time depends mainly on the time it takes you to gather the housing declaration, the office lease, and to have the company name approved.
Can a foreigner open a company in China without a Chinese partner? Yes. A company wholly owned by a foreigner is possible in most sectors. Some activities remain subject to specific restrictions or authorizations, which should be verified according to your scope of activity.
Is a physical office absolutely necessary? A registered business address is mandatory, but it can be a legitimate virtual office. Important note: the police check annually that the address is indeed yours, so the service provider must be reputable and contactable.
How much does it cost to open a business in China? Prepaid taxes amount to around €300, in addition to office space (paid annually) and agent fees. You also need to budget for mandatory monthly accounting, which begins in the first month of operation.
Does starting a company allow you to obtain a work permit? This is one of the main motivations. Being the legal representative of one's own company opens a path to a work permit, and therefore to continuous residence without monthly departures from the country.
Can you use your apartment as your company's registered office? Only if the property is registered for mixed residential/office use. Not all neighborhoods offer this. When possible, it's the easiest way to cut costs in half.
Are you hesitating between opening a business in China and working with an established partner? We're based in Guangzhou and can honestly tell you if it's worth it in your case. Contact us on WhatsApp at [phone number]. +33 7 55 97 34 49.