YOUR QUESTIONS, ANSWERED
Starting a company in China?
Start here.
Straight answers for US founders and companies, from registering your WFOE to visas, IRS reporting and getting profits home.
Reviewed October 29, 2026 · General information, not legal or tax advice. Your city, business activity and circumstances decide the final requirements.
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Ask your question ↗Company formation
Ownership, documents and first steps for US founders.
What is a WFOE?
WFOE stands for wholly foreign-owned enterprise: a company registered in China and owned entirely by foreign investors, such as you or your US company. Most WFOEs are limited liability companies, roughly comparable to a US LLC or corporation in that the owners' liability is limited. The term is still widely used, although foreign-invested companies now fall under China's Foreign Investment Law and Company Law. A WFOE is a separate Chinese legal entity, not a branch or bank account of your US business.
Can a US citizen own 100% of a company in China?
Yes, for many business activities. Trading, sourcing, consulting, software services and many other sectors allow full foreign ownership, so you don't need a Chinese partner. Some activities are restricted or prohibited under China's foreign investment negative list, and others need licenses whatever the ownership. We check your planned business scope before recommending a structure.
Which Chinese city should I choose?
Start with where your customers, suppliers and staff actually are. Shenzhen suits electronics, hardware and sourcing businesses; Shanghai is a common choice for finance, consumer brands and regional headquarters; Beijing for government-facing and tech businesses. We support Shenzhen, Shanghai, Beijing, Wuhan, Hainan and Changsha, with our headquarters in Shenzhen, and help you compare address availability, cost and industry requirements rather than claiming one city is best for everyone.
Link to this answer ↗How long does it take to set up a company in China?
Plan on roughly 10–20 business days for the business license once your documents are complete and an acceptable address is confirmed. That's our planning estimate, not a government deadline. For US applicants, allow extra time before that for apostilles and international courier, and after it for the bank account, tax setup, any industry licenses and visas. Most clients should budget about one to two months from first call to a working company and bank account.
How much registered capital do I need?
There's no general minimum, though some sectors have their own rules. Choose an amount that's credible for your business plan and that you can actually fund. For a newly formed limited liability company, committed capital is generally due within five years of incorporation, subject to exceptions. Registered capital is money you invest in your own company; it's separate from our fee.
Is the legal representative the same as a director?
Not necessarily. They're separate roles, although one person can hold both. The legal representative is a director or manager who acts for the company, as set out in the Articles of Association. It's a legally significant role with real responsibilities, unlike a nominal officer, so choose someone who will be actively involved.
What documents do I need to register a company in China?
Usually: the registration application, Articles of Association, shareholder ID (US passport) or corporate documents for a US company shareholder, officer appointments and ID, and proof of a lawful business address in China. Regulated activities can need extra approvals. We prepare a checklist tailored to your ownership structure, business activity and city.
Can I set up a company in China without traveling there?
Most of the registration can be handled from the US: you sign documents, get them apostilled and courier them to us. Don't assume the whole process is remote, though. Plan for the legal representative to visit China for bank account verification unless the bank confirms an accepted alternative. Confirm the bank appointment before booking flights.
US tax & legal questions
What owning a China company means on the US side.
Can my US LLC or corporation own the China company?
Yes. A US entity, such as a Delaware C-corp or an LLC, can be the sole shareholder of a WFOE. China will ask for corporate documents like your Certificate of Incorporation or Formation and a Certificate of Good Standing, apostilled by the issuing state, plus evidence of who can sign for the company. Whether to own the WFOE personally or through your US company affects your US taxes, so decide with your CPA before we file.
How do I get US documents apostilled for China?
China joined the Apostille Convention in November 2023, and the US is also a member, so you no longer need Chinese consulate legalization for covered public documents. State-issued documents, such as a Certificate of Good Standing, a notarized passport copy, a diploma or a marriage certificate, are apostilled by the Secretary of State of the issuing state. Federal documents, such as an FBI background check, are apostilled by the US Department of State. Check the exact list with us before ordering apostilles, as translation requirements vary.
Do I have to report my China company to the IRS?
Often, yes. US citizens, green card holders and US companies that own or control a foreign corporation commonly need to file IRS Form 5471. If you have a financial interest in, or signature authority over, foreign bank accounts worth more than $10,000 in total during the year, an FBAR (FinCEN Form 114) is generally required, and Form 8938 may also apply. Penalties for missing these forms can be significant. We don't prepare US returns, but we provide English-language financial records for your CPA.
How does the US–China tax treaty affect dividends?
The US–China income tax treaty generally limits Chinese withholding on dividends paid to eligible US residents to 10%. For a US company shareholder, that matches China's domestic 10% rate. For individual shareholders, China's rate on dividends from foreign-invested enterprises is 20% from September 1, 2026, and treaty relief may bring that down to 10% if you qualify and file the right paperwork. Chinese tax paid may then be creditable against US tax, subject to US limits.
Do US outbound investment rules affect my China company?
Most likely not, unless your business involves sensitive technology. Since January 2, 2025, US Treasury rules prohibit or require notification of certain investments by US persons in Chinese businesses working on semiconductors and microelectronics, quantum information technology and some AI systems. Typical trading, sourcing, consulting, e-commerce and service companies fall outside these rules. If your China company could touch these areas, speak to US counsel before forming it.
Will I pay into US Social Security or Chinese social insurance while working in China?
Foreign employees legally working in China generally have to join China's social insurance system. Some countries have agreements with China that exempt their nationals, but the US and China don't currently have a Social Security totalization agreement, so US citizens usually can't rely on one. Your US Social Security position depends on who employs you and how; ask a US tax adviser about your situation.
Can I pay in US dollars?
We quote and invoice in RMB, the currency your China company operates in. USD figures on this site are approximate conversions so you can budget. Ask your adviser about payment options from the US; the final amount in dollars will depend on the exchange rate and any bank fees when you pay.
Link to this answer ↗Banking & capital
Opening accounts and moving money correctly.
What does a Chinese bank need to open a company account?
Expect to provide the business license, the legal representative's passport, the company chops and any ownership, authorization or business information the branch requests. Banks run their own checks, including on US-owned companies, and usually require an in-person visit. Our VIP service prepares and coordinates the application, but the bank makes the final decision.
Can I manage my China bank account from the US?
Usually, yes. Banks such as ICBC offer corporate online banking for balances, transfers and payments. Access, English-language options, security tokens, approval permissions and whether it works reliably from abroad depend on the bank and service. Confirm these features when the account is opened, especially if you'll run the business from the US.
How do I wire registered capital from the US?
Before sending money, ask the receiving bank to confirm which company account to use, the foreign investment registration, currency, remitter details and payment reference. The wire should come from the shareholder named in the company documents, whether that's you or your US company, so there's a clear evidence trail. Don't assume a transfer from a personal account of someone else, a cash deposit or a third party will count as a capital contribution.
Link to this answer ↗Can I use registered capital for operating expenses?
Yes, within the rules. Capital isn't frozen or limited to buying investments, but how it's used must follow China's foreign-exchange rules and genuine business needs. Ask the bank and your accountant to confirm the payment route and documents needed for rent, salaries and other planned costs.
Work & family visas
Working and living in China as a US citizen.
Does owning a Chinese company let me work in China?
No. Owning a company and having permission to work are separate. To work in China long term, you normally need a work permit and a work-type residence permit, usually entering on a Z visa. A business license alone isn't work authorization, and an M business visa doesn't allow employment.
How does a US citizen get a China work visa?
First, the employer in China (which can be your own company) obtains a work permit notice. Next, you apply for a Z visa through the Chinese Visa Application Service Center that covers your US state. After arriving in China, you complete the work permit, health check, accommodation registration and residence formalities, and normally apply for the work-type residence permit within 30 days of entry. The exact route depends on your circumstances.
Who qualifies for a China work permit?
Applicants generally need to be at least 18, healthy, without a criminal record, with an eligible employer and suitable skills. A common Category B route uses a bachelor's degree plus two years of relevant work experience, generally up to age 60. US applicants typically provide an apostilled degree and an FBI Identity History Summary apostilled by the US Department of State; some cities accept a state-level check. Alternative routes and exemptions exist, so eligibility needs an individual review.
What are Category A, B and C work permits?
Category A is for qualifying high-end talent, Category B for foreign professionals and Category C for other eligible foreign staff under the relevant policies. These are work permit classifications, not products you choose. Your qualifications, role and the applicable criteria decide which applies, and we assess this before recommending an application.
Is a one-year work permit guaranteed?
No. Our work visa service, about $1,200 (RMB8,500) per person, is for an application aiming at one year of work and residence permission. Actual approval and validity are up to the authorities. The Z entry visa and the later work and residence permits are separate documents. Medical exam costs aren't included.
Link to this answer ↗Which family members can join me in China?
For a long-term S1 visa to join a foreigner living in China, eligible relatives are a spouse, parents, parents-in-law and children under 18. They normally need proof of relationship, such as an apostilled US marriage or birth certificate, an invitation letter and copies of the sponsor's passport and residence permit. The consular authority decides each application.
What's the difference between an S1 and an S2 visa?
S1 is for stays longer than 180 days; S2 is generally for stays of up to 180 days and covers a wider range of relatives. S1 holders must apply for a residence permit within 30 days of arrival. Neither family visa allows the holder to work. Our family visa service is about $560 (RMB4,000) per person.
Accounting & China tax
Ongoing obligations, tax residency and dividends.
Do I need an accountant in China after incorporation?
Yes. Plan for proper bookkeeping, supporting documents and your filing schedule from day one. Even before you start trading, some filings are usually required; having no sales doesn't mean you can skip compliance. Our monthly accounting service is separate from company formation unless your written proposal says otherwise.
Does every Chinese company file every tax monthly?
No. Depending on the tax and your company's status, filings can be monthly, quarterly or annual. Our monthly fee is a billing period, not a statement that every tax has the same cycle. Public holidays can also shift official deadlines.
Which taxes does a US-owned company in China pay?
The main ones are corporate income tax and VAT (China's equivalent of sales tax, though it works differently), plus related surcharges and other taxes depending on your transactions. The standard corporate income tax rate is 25% of taxable profit, and qualifying small companies can pay much less. Being US-owned doesn't, by itself, change your rate or qualify you for incentives. Ask for an assessment based on your activity and taxpayer status.
If I spend 183 days in China, is all my US income taxed there?
It's not that simple. The 183-day test matters for a non-domiciled person's Chinese tax residency, but domicile, where income comes from, the US–China treaty and China's special six-year rule all play a part. Some foreign-source income paid outside China can be exempt under the non-domiciled rules. And as a US citizen, you remain subject to US tax on worldwide income regardless. Review your travel and income with advisers in both countries.
Can I send company profits back to the US?
Yes, once profits have been properly calculated and taxed. A dividend has to follow China's profit-distribution rules and the applicable tax and bank procedures. A US company shareholder generally faces 10% Chinese withholding. For foreign individuals, the rate on dividends from foreign-invested enterprises is 20% from September 2026, which treaty relief may reduce to 10% for eligible US residents. Treaty eligibility and paperwork need checking before payment.
Offices & addresses
Choosing an address that fits the business you'll actually run.
Can I register a Chinese company with a virtual office?
Yes. Every virtual office we offer is approved for company registration, and we check its suitability for your city and business activity before booking. They aren't offered for visa applications. Our Company Formation & Bank Account package, about $2,600 (RMB18,478), includes one year of virtual office with a formal lease. Standalone virtual offices start from about $420 (RMB3,000) a year.
Link to this answer ↗Can I use my US address as the registered address?
No. A Chinese company must have a lawful registered address in China, in the district where it is registered. That's why our formation package includes a one-year virtual office. Your US address can still be used for correspondence and as the shareholder's address on company documents.
Do I need a serviced office for the work visa package?
Yes. Our Company Formation, Bank Account & Work Visa package, about $2,660 (RMB18,869), requires a separately paid serviced office with at least a one-year formal lease from an approved provider, plus the required premises documents. Starting monthly prices range by city from about $420 to $700 (RMB3,000–RMB5,000). The authorities still assess the premises and your case.
Link to this answer ↗Can I use an office or store I already rent in China?
Talk to us before signing or relying on the lease. We need to check its permitted use, whether it can be registered, the address documents and whether it suits your business and any work permit application. A lease on its own doesn't guarantee approvals.
Can I start operating as soon as I get the business license?
Not always. You may still need the bank account, tax registration, industry licenses and employment or social insurance setup. The order depends on your activity and whether you hire staff. We'll explain the remaining steps and which ones are included in your service.
Packages & support
Price, scope and next steps before you commit.
What's the difference between your two company formation packages?
Company Formation & Bank Account, about $2,600 (RMB18,478), includes one year of virtual office and bank account support, with no work visa. Company Formation, Bank Account & Work Visa, about $2,660 (RMB18,869), adds work visa support for one person but requires a separately paid serviced office and accounting. Compare the ongoing costs too, not just the setup fee; final scope is confirmed in your proposal.
Link to this answer ↗How much does China accounting and tax filing cost?
About $210 a month (RMB1,500) for up to 50 transactions, $350 (RMB2,500) for 51–200 and $490 (RMB3,500) for 201–500. English-language support is included. Ask for a custom quote above 500 transactions, and confirm how transactions are counted before picking a plan.
Link to this answer ↗Will I be able to work with your team in English?
Yes. Our advisers work with clients in English, and we also support Chinese, German, Russian, Thai, Indonesian and Burmese. Chinese documents are explained to you before you sign. Let us know your time zone and we'll suggest call times that work for both sides; Shenzhen is 12 hours ahead of US Eastern time in summer and 13 in winter.
Link to this answer ↗How can I track my application?
Ask your adviser for secure tracking access and milestone updates. The “Track application” button on this site prepares an email asking for access; it doesn't show private application records itself. Keep your application reference handy when you contact us.
Link to this answer ↗Marketing in China
Chinese platforms, content and your online presence.
Can I use Google, Facebook or Instagram ads to reach customers in China?
Not in mainland China. Google, Facebook, Instagram, YouTube and X are blocked there, so Chinese consumers use WeChat, Baidu, Douyin, Xiaohongshu (RED) and Weibo instead. To reach them, you need a presence on those platforms, with content written for Chinese audiences rather than translated from your US campaigns.
Link to this answer ↗What's included in your China marketing plans?
Plan 1 covers one platform, WeChat or Xiaohongshu, with 8 posts a month. Plan 2 covers WeChat and Xiaohongshu with 20 posts a month. Plan 3 covers WeChat, Xiaohongshu and Weibo with 40 posts a month and up to two influencer outreach activities. Our Hangzhou team handles content and copywriting. Post counts are package totals; request a proposal for pricing and reporting details.
Link to this answer ↗Are platform verification and influencer fees included?
The plans include setup and verification support, subject to the platform accepting your entity and documents; some platforms require a Chinese company. Approval isn't guaranteed. Influencer fees aren't included in Plan 3. Platform charges, ad budgets and other third-party costs are confirmed separately in your proposal.
Link to this answer ↗Can you help with a Chinese website and brand name?
Yes. Ask us about website localization, translation, a Chinese brand name or Douyin setup. Having a Chinese-language website and being allowed to host it in mainland China are separate questions. Confirm the hosting location, entity, content and any required ICP filing or license before launch; requirements vary by province and provider.
GO DEEPER
China books.
US reporting.
Compare our accounting plans and read about Chinese corporate tax, US filings for owners and getting profits back to the US.
Explore accounting & tax ↗YOUR NEXT STEP
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