Types of Companies in China - Legal Structures

International businessmen can explore the main company types in China before starting one. This article provides information about the key company structures in China and their features, noting that personalized assistance can be offered to investors willing to commence operations here.

What are the main company types in China?

Limited liability company,
Joint stock limited company,
Wholly Foreign-Owned Enterprise (WFOE),
Joint Ventures,
Foreign-Invested Partnership (FIP),
Representative Office,
Branch,
Subsidiary, etc.

What is the most popular business structure/entity in China?

The Wholly Foreign-Owned Enterprise (WFOE); since the Foreign Investment Law of 1 January 2020, WFOEs and joint ventures are organised as LLCs or joint stock companies under the Company Law.

Here is an infographic about the available types of companies in China:

What is the minimum share capital of a WFOE?

No statutory minimum (except in regulated sectors), but under the revised Company Law in force since 1 July 2024 subscribed capital must be fully paid within 5 years.

Where do I register a company in China?

At the State Administration for Market Regulation (SAMR), which is the Chinese Trade Register.

What are the key conditions to set up a WFOE in China?

must appoint a legal representative and a supervisor (our Chinese lawyers can represent), in charge of various company registration tasks,
must secure a business address in China when starting a company,
must open a corporate bank account,
must register with the State Taxation Administration (STA), etc.

IMPORTANT: Businessmen must verify and reserve the trade name when starting the incorporation procedures in China. The legal representative of the firm can be in charge of this task and the ones above.

Is it hard to register a joint venture in China?

In some cases, it is more complex than a WFOE. A Chinese partner is required because a joint venture acts as a partnership dedicated to specific projects.

Are holding companies available in China?

Yes. These are often selected by multinational companies and are known as Foreign-Invested Holding Companies (FIHCs).

Can I buy a shelf company in China?

Yes, these are known as ready-made or vintage companies.

What are the features of a branch in China?

must operate the same activities as the parent company,
must report to the foreign company,
it does not act as a separate legal entity.

NOTES:

there is no minimum share capital required for opening a branch in China,
a branch manager needs to be appointed for this business entity,
SAMR issues the required approvals to set up a branch in China.

How do I register a representative office (RO) in China?

a representative office, also called a liaison office, can be registered with SAMR,
the parent/foreign company will have to prove they are active in the country of origin for at least 2 years,
applicants must present a reference letter notarized by the Chinese Embassy or Consulate in the country of origin when incorporating an RO in China.

IMPORTANT: A representative office in China cannot engage in commercial activities. Only marketing, advertising, and research operations are permitted through an RO in China.

What is the time frame to register a company in China?

Around 6-10 weeks for a WFOE and about 3-6 months for companies in heavily regulated business sectors like healthcare, manufacturing, finance, etc.

Would you like to explore more about the types of companies available in China? You can contact our law firm in China. We also assist with immigration to China if you want to relocate your company staff.