Register and operate a company in mainland China

01 · ChinaMNC

Why China for Indian founders

China is a large, integrated market with deep manufacturing and supplier networks. For Indian companies, a mainland presence can make it easier to work directly with factories, manage quality on the ground, serve Chinese customers and collect payments in local currency. Many Indian founders start with a trading or sourcing relationship and later decide that a registered entity gives them more control.

A local company also helps with hiring, contracting and day-to-day administration. Instead of coordinating everything from India across time zones, you can employ staff, sign leases and open local bank accounts in the name of the China entity.

• Market access: sell or support products and services to Chinese customers directly.
• Supplier relationships: manage sourcing, inspection and logistics with a local team.
• Local hiring: employ Chinese staff and contractors through a compliant entity.
• Payments: invoice and receive funds in renminbi through a corporate account.

At the same time, China is a competitive market with its own regulatory culture. Success usually depends on a clear business model, realistic budgeting and good local advice rather than speed alone.

02 · ChinaMNC

WFOE, joint venture or representative office

The right structure depends on what you want the China entity to do. A wholly foreign-owned enterprise (WFOE) is the most common choice for foreign investors who want to trade, provide services or manufacture. It is a separate legal entity, wholly owned by your Indian company or by you as an individual, and it can hire staff and generate revenue.

A joint venture (JV) brings in a Chinese partner. This can help with market access, local relationships or specific licensing requirements, but it also means shared control and a detailed shareholders' agreement. A representative office (RO) is the lightest option: it can conduct liaison and market research but generally cannot earn revenue directly. ROs suit companies that want a small presence before committing to a full entity.

• WFOE: full control; suited to trading, services and manufacturing where foreign ownership is permitted.
• JV: shared ownership; consider where local partnership adds genuine value.
• RO: liaison only; no direct revenue activity.

Check whether your planned activities appear on the negative list for foreign investment, and confirm the rules for your city before choosing.

03 · ChinaMNC

The five-step registration process

Registration in mainland China generally follows a sequence of approvals. The exact steps and timelines differ by city, so treat this as a planning outline rather than a fixed schedule.

• Step 1 — Feasibility and structure: define your business activities, choose the entity type, decide on registered capital and identify the city and premises. Confirm whether your sector is open to foreign investment.
• Step 2 — Name and scope: reserve a company name and draft the business scope, which describes permitted activities. The wording matters because it affects what you can legally do and which permits you need.
• Step 3 — Filing and licence: submit incorporation documents to the market entity registration authority. Where your activities are regulated, apply for the relevant sector licence.
• Step 4 — Post-registration setup: obtain the company seal set, open a bank account, complete tax registration and set up invoicing.
• Step 5 — People and operations: arrange work permits and residence permits for foreign staff, sign the lease, and put accounting and compliance routines in place.

Each step depends on the previous one, so a realistic plan usually allows time for document translation, notarisation and local review.

04 · ChinaMNC

Documents Indian founders usually need

Chinese authorities require a clear paper trail, and documents from India normally need translation into Chinese and legalisation or apostille, depending on current rules. Prepare originals and copies early, because missing paperwork is a common cause of delay.

• Investor documents: certificate of incorporation and constitutional documents for a corporate investor, or passport for an individual.
• Authorisation: board resolutions and a power of attorney for the person handling registration.
• Identity documents: passports or ID for legal representatives, directors, supervisors and shareholders.
• Address evidence: a lease or property documents for the registered address, plus landlord documentation.
• Name and scope: proposed company names and a drafted business scope.
• Translations: Chinese translations, often with a translation statement.

Some cities ask for additional materials, such as proof of the investor's good standing or bank references. Keep digital and physical copies organised, and confirm the current checklist with your local registration agent before submission.

05 · ChinaMNC

Registered address and business scope

Every mainland company needs a registered address, which is the official location recorded with the authorities. In many cities you cannot use a purely virtual address; the premises must be suitable for the registered activity and supported by a lease and landlord documents. Some districts allow shared or incubator addresses for certain service businesses. Confirm what your chosen district accepts before signing.

Business scope is the formal description of what your company may do. It should match your real plans: too narrow and you may need to amend it later; too broad and you may trigger extra approvals or scrutiny. Regulated activities, such as food, education, logistics or certain professional services, usually require a separate licence before you can operate.

• Match the address to the activity and the district's rules.
• Draft the scope in Chinese with local advice.
• Identify any pre-approval or sector licence early.
• Plan for amendments if your business changes.

Address and scope are linked, so review both together rather than treating them as separate formalities.

06 · ChinaMNC

Banking, tax and visas after incorporation

After registration, the company needs a corporate bank account, tax registration and a working accounting routine. Opening a bank account usually involves the legal representative or an authorised signatory, and banks apply their own onboarding and due diligence checks. Prepare your licences, seals, lease and identification documents, and expect questions about the source of funds and expected transactions.

On tax, a China entity is generally subject to corporate income tax and VAT, with invoicing through the official system. Rates, incentives and filing obligations depend on your activities and location, so engage a local accountant from the start. Keep proper books and file on time.

Foreign staff need a work permit and usually a residence permit; the process involves the employer and local labour and immigration authorities. Plan visas alongside hiring, because timelines vary. Indian founders often visit on business visas while the entity is being set up, but business visas do not replace work authorisation for employment in China.

07 · ChinaMNC

Common mistakes to avoid

Many problems are avoidable with a little planning. Indian founders often underestimate the administrative workload, the importance of Chinese-language documents, or the difference between what is allowed in theory and what a given district will approve in practice.

• Choosing the wrong entity: an RO cannot generate revenue, and a JV needs a strong agreement on control and exits.
• Vague business scope: it can block permits or force a later amendment.
• Assuming a virtual address works: confirm district rules and landlord documentation first.
• Ignoring tax setup: late registration or poor bookkeeping creates unnecessary risk.
• Underestimating visas: foreign staff need work authorisation, not just a business visa.
• No local professional support: translation, accounting and compliance are hard to handle remotely.

Budget for professional fees, office costs and staff, and build in time for approvals. A measured approach usually costs less than fixing a rushed setup.