The latest from China & Hong Kong

Quick answer: A foreign shareholder injects registered capital by sending funds from its own account to the WFOE's foreign currency capital account at a Chinese bank. The funds can then be converted into RMB and used for genuine business within the company's scope. Under the 2024 Company Law, the full subscribed capital must be paid in within five years of incorporation, and paid-in capital must be disclosed publicly. Last updated: November 2026 Deciding how much capital to r

Quick answer: A company chop is an official seal that legally binds a Chinese company. A WFOE usually has a company chop, a finance chop, a legal representative chop, an invoice (fapiao) chop and often a contract chop. Whoever holds the company chop can commit the company to contracts and official filings, so foreign owners need clear written controls over who keeps each chop and when it can be used. Last updated: November 2026 In many Western countries a signature binds a co

Quick answer: Under China's 2024 Company Law, a WFOE's legal representative must be a director or the manager who runs the company's affairs. The legal representative signs for and binds the company, and carries personal risk if the company fails to meet its obligations. Small WFOEs can have a single director and, with the consent of all shareholders, no supervisor. Choose people you trust, who are reachable and who understand the role. Last updated: November 2026 Founders of

Quick answer: Foreign companies usually set up in Shanghai as a WFOE, a wholly foreign-owned limited company. The key early decisions are which of Shanghai's 16 districts to register in and securing a compliant commercial registered address. Registration with the Shanghai market regulator is largely online, but opening the bank accounts, completing tax set-up and registering for social insurance mean the full process typically takes two to four months before the company is re

Quick answer: Registering a WFOE in China usually takes two to four months from the start of document preparation until the company can trade, invoice and pay staff. The business licence itself is often issued within a few weeks of filing. The longer steps are preparing authenticated documents abroad and opening the corporate bank account. Founders often hear that "a WFOE can be registered in China in a week". That refers to one step, the business licence. A company that can

Quick answer: Foreign shareholders registering a company in China must provide authenticated identity and corporate documents. Since 7 November 2023, when the Apostille Convention took effect in mainland China, documents from other member countries need only notarisation and an apostille (the Apostille China route), without consular legalisation. Documents from non-member countries still require legalisation, and Hong Kong documents follow a separate attestation route. Docume

Quick answer: Holding a China WFOE through a Hong Kong holding company can reduce withholding tax on dividends from 10% to 5% under the Mainland–Hong Kong tax arrangement, and makes regional restructuring easier. The reduced rate only applies if the Hong Kong company is the genuine beneficial owner with real substance. Set up the Hong Kong company first, because it becomes the WFOE's shareholder. Many foreign groups put a Hong Kong company between the parent and the China WFO

Quick answer: Setting up a wholly foreign-owned enterprise (WFOE) in China involves three separate budgets: one-off setup costs, ongoing running costs, and registered capital. With Woodburn, the full first-year setup package for a limited company is CNY 22,600. Running costs such as office space, accounting, payroll, and the annual audit come on top, and registered capital is money you commit to the company, not a fee. Most founders ask "how much does a WFOE cost?" expecting

Incorporating in Hong Kong is fast. The harder part is building a company that runs cleanly from its first invoice. The businesses that avoid problems in year two are the ones that set up the right foundations in week one: a compliant legal structure, a multi-currency account that can send and receive globally, and cloud accounting that keeps the books audit-ready all year. This guide walks through how those three pieces fit together. Step one: incorporate your Hong Kong limi

The first real decision in China is not how to set up. It is what to set up. The entity you choose shapes what you can invoice for, how you are taxed, how profit leaves the country, and how easily you can exit later. Getting this right before you file saves far more than it costs. Start with what the structure has to do Foreign investors in China have several vehicles available, but only a few are realistic for most operating businesses. The right choice depends on whether yo

Foreign founders often treat China incorporation as a project with a finish line: choose a structure, file the paperwork, receive the business licence, done. In practice, the licence is the opening of an ongoing compliance relationship rather than the closing of a setup task. Understanding what you are committing to before you file is the difference between a clean operation and an expensive scramble in year one. The licence is a starting line, not a finish line A wholly fore

Expanding into Mainland China remains a significant strategic decision for international businesses. While the opportunity is substantial, the incorporation process is highly regulated and requires careful planning from the outset. Structure, compliance, tax positioning, governance, and operational readiness must all be addressed before a company can trade effectively. With more than four decades of experience supporting inbound investment into China and Hong Kong, Woodburn A

Setting up a company in China remains a viable route for international businesses seeking access to the domestic market, supply chains, or regional operations. At the same time, the registration process in 2026 places greater emphasis on accuracy, transparency, and alignment between what a company says it will do and what it actually does. This guide walks through the registration process step by step, highlights recent regulatory developments, and explains where foreign inve

Shenzhen remains one of China’s most established locations for foreign investment, particularly for technology, manufacturing, innovation and cross border trading businesses. Incorporation is relatively efficient by China standards, but it is still a regulated, document driven process that requires careful upfront planning. Decisions made at incorporation stage have lasting implications for tax exposure, staffing, profit repatriation and regulatory flexibility. This article o

As 2026 unfolds, incorporating in China remains a compelling—but complex—move for many foreign companies seeking growth in the world’s second-largest economy. Recent regulatory reforms, technological advances and evolving legal frameworks have changed the path to incorporation. Below is a guide to the “blueprint” investors should follow and the key strategic decisions they need to make when setting up a company in China in 2026. What’s Changed and What’s New by 2026 The Forei

Expanding into China offers UK companies significant growth opportunities, but navigating the regulatory, cultural, and operational...

Establishing a foreign company in China offers many opportunities but demands a thorough understanding of the country’s regulatory requirements. Foreign company registration is a critical first step for any overseas business seeking to enter the Chinese market. Selecting the appropriate business structure and ensuring full compliance with local regulations can significantly impact your long-term success. Choosing the Right Business Structure When pursuing foreign company regi

Establishing a company entity in China can be an attractive opportunity for many businesses looking to tap into one of the world's...

As businesses increasingly seek to expand their reach into international markets, China presents itself as a prime destination due to its...

As the world’s second-largest economy and a global hub for trade, China offers immense business opportunities, particularly for...