Company setup and administration in China
A legal entity in China is a tool, not a trophy. We set up the structure that matches what you actually need to do — invoice in RMB, hire staff, hold stock, import — and then run the administration so it stays compliant.
Three structures, three different purposes
Most European SMEs arrive asking for a WOFE because it is the structure they have heard of. Sometimes a representative office is enough; sometimes a joint venture with a Chinese partner is the only way to access a licence or a distribution network. The right answer depends on what the entity must do in the first two years.
- Invoicing in RMB to Chinese customers
- Hiring local staff and paying social insurance
- Importing and holding stock
- Holding a production licence
- Protecting a trademark before launch
Which entity fits
We compare capital, timeline, tax exposure and what each structure is allowed to do.
WFOE — wholly foreign-owned
Full trading and manufacturing scope, RMB invoicing, own staff. Registered capital subscribed, not blocked; accounting and tax filings from month one.
Request a cost estimateRepresentative office
Lightest option for market research and liaison: no invoicing, no revenue, limited hiring. Useful as a first presence while you test the market.
Compare with a WFOEJoint venture
Access to a licence, a plant or a distribution network in exchange for capital and governance. Needs a shareholders' agreement that anticipates deadlock.
Structure a JVAdministration only
You already have the entity: we take over bookkeeping, VAT, payroll, statutory filings and the annual audit.
Audit and complianceWhat we handle after registration
| Area | What it covers |
|---|---|
| Registered address | Legal address in Ningbo or another city, mail handling, lease registration with the local authority. |
| Accounting and tax | Monthly bookkeeping, VAT invoices (fapiao), corporate income tax, annual reconciliation, transfer pricing documentation when group transactions exist. |
| Payroll and HR | Employment contracts, social insurance and housing fund, individual income tax, work permits and residence permits for expatriates. |
| Legal compliance | Company chop management, statutory registers, changes of legal representative or scope, annual reporting. |
| Trademarks | Search, filing and defence of Chinese trademarks in the relevant classes — before a competitor registers yours. |
| Exit | Deregistration, liquidation and tax clearance when the entity is no longer needed. |
Timeline and what can go wrong
A WFOE typically takes six to ten weeks from name pre-approval to bank account, depending on the city and the scope. A representative office is faster; a joint venture depends on the partner.
The delays are rarely bureaucratic mysteries: they come from a business scope that does not match the activity, a registered address that the district will not accept, or a name that conflicts with an existing mark. We check all three before filing.
Why not simply use a friend's company
It works until the first customs inspection, the first VAT refund or the first dispute. Producing or selling under a third party's entity leaves you without control of the chop, the bank account and the accounting records — and with a tax exposure you cannot see.
The cost of a correctly registered company is predictable. The cost of an informal arrangement surfaces years later, usually at the worst moment.
Questions about company setup
How much capital do I need for a WFOE?
Registered capital is subscribed, not paid upfront in most sectors, and the amount must be consistent with the business plan and with local requirements. Trading and manufacturing scopes ask for more than a consulting scope. We size it with you before filing, because it appears on the licence.
Can a foreign company invoice Chinese customers without a Chinese entity?
Yes, for cross-border services and goods, with the right contracts and tax treatment. What you cannot do without an entity is issue a Chinese VAT invoice, hire staff locally or hold stock in China.
Do I need a Chinese partner?
Only where the activity is on the negative list. For most industrial trading, manufacturing and consulting activities a WFOE is allowed with full foreign ownership.
How long does registration take?
Six to ten weeks for a WFOE in Zhejiang, including bank account and tax registration, if the business scope and address are clean. Changes afterwards are faster.
Who signs the annual filings?
The legal representative, who carries personal responsibility for accuracy. We prepare the filings and flag anything that needs your decision before signature.
Related services
Opening in China?
Describe your product, your volumes and where you produce today. We reply within 24 hours.
Request a free feasibility review+86 1881 5299 660
宁波贝琳达进出口有限公司
Room 426, Building 3, No. 2 XinJian Road, Beilun District, Ningbo, Zhejiang