China
Key entity, tax, banking, visa, and compliance guidance for foreign founders incorporating in China.
Foreign Ownership Eligibility
China welcomes 100% foreign-owned companies
A physical visit is required at some point during the formation process.
- 100% foreign ownership permitted
- Legal system: Civil Law
- Primary registration authority: SAMR (State Administration for Market Regulation)
- Tax authority: SAT (State Administration of Taxation)
- Corporate income tax: 25% (Source: Wikipedia Tax Rates, May 2026)
- VAT / sales tax: 13% (Source: Wikipedia Tax Rates, May 2026)
- Estimated formation timeline: 3–10 days (calibrated from EODB 2020 rank)
- Annual compliance and renewal obligations apply
Ownership
100% Foreign OK
Formation
Visit Required
Tax at a glance
China Tax Overview
25%
Corporate Income Tax
Wikipedia: List of Countries by Tax Rates (May 2026); verify at official tax authority
13%
VAT / Sales Tax
Wikipedia: List of Countries by Tax Rates (May 2026); verify at official tax authority
Very Easy
Ease of Doing Business
World Bank Doing Business 2020 (archived), via Wikipedia EODB Index. EODB 2020 rank: 31 (Very Easy).
3–10 days
Estimated Formation Timeline
Calibrated from World Bank Doing Business 2020 EODB rank. Verify with official registry.
Pros & cons
Advantages & Considerations
Key Advantages
100% foreign ownership permitted
Established legal framework under Civil Law
Primary registry: SAMR (State Administration for Market Regulation)
WFOEs are primary vehicle for 100% foreign ownership
Considerations
Regulatory environment may require local professional guidance
Tax and compliance requirements governed by SAT (State Administration of Taxation) - professional advice recommended
Physical visit may be required for registration
Banking access and KYC requirements vary - allow time for corporate account opening
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Name reservation and document preparation
Submit incorporation application
Tax registration
Open corporate bank account
Ongoing compliance setup
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Government fees are indicative. Verify current fee schedule with SAMR (State Administration for Market Regulation) before committing.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every China setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? YES.
Banking options for non-resident founders in China. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| ICBC | Traditional bank | Low (Visit Required) | 2-6 weeks depending on bank KYC requirements • Varies by institution • Bank-specific requirements apply • Certificate of incorporation, shareholder IDs, business plan, registered address proof • SWIFT international transfers, local bank transfers, cards |
| Bank of China | Traditional bank | Low (Visit Required) | 2-6 weeks depending on bank KYC requirements • Varies by institution • Bank-specific requirements apply • Certificate of incorporation, shareholder IDs, business plan, registered address proof • SWIFT international transfers, local bank transfers, cards |
| China Construction Bank | Traditional bank | Low (Visit Required) | 2-6 weeks depending on bank KYC requirements • Varies by institution • Bank-specific requirements apply • Certificate of incorporation, shareholder IDs, business plan, registered address proof • SWIFT international transfers, local bank transfers, cards |
| HSBC China | Traditional bank | Low (Visit Required) | 2-6 weeks depending on bank KYC requirements • Varies by institution • Bank-specific requirements apply • Certificate of incorporation, shareholder IDs, business plan, registered address proof • SWIFT international transfers, local bank transfers, cards |
| WeChat Pay | Fintech | High (Remote) | 2-6 weeks depending on bank KYC requirements • Varies by institution • Bank-specific requirements apply • Certificate of incorporation, shareholder IDs, business plan, registered address proof • SWIFT international transfers, local bank transfers, cards |
| Alipay | Fintech | High (Remote) | 2-6 weeks depending on bank KYC requirements • Varies by institution • Bank-specific requirements apply • Certificate of incorporation, shareholder IDs, business plan, registered address proof • SWIFT international transfers, local bank transfers, cards |
Regulatory requirements
Annual Compliance Matrix
| Requirement | Deadline | Details |
|---|---|---|
Annual company filing | Ongoing | File annual returns with SAMR (State Administration for Market Regulation) to maintain good standing. |
Tax filing with SAT (State Administration of Taxation) | Ongoing | Submit annual CIT returns. VAT/sales tax filings may be monthly or quarterly. |
Accounting records | Ongoing | Maintain statutory books and financial records per Civil Law requirements. |
Beneficial ownership disclosure | Ongoing | Many jurisdictions require UBO disclosure - verify current China requirements. |
Frequently Asked
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