Starting a Business - China

Foreigners may own 100% of a company (WFOE) in any sector not on the Negative List for Foreign Investment Access. The 2024 edition (effective 1 Nov 2024) retains restrictions and prohibitions in areas such as telecom value-added services, publishing/media, certain financial services and domestic shipping/aviation; sectors not on the list receive national treatment.

The 2024 Negative List removed the last two manufacturing restrictions (printing of publications and certain traditional Chinese medicine processes), so the entire manufacturing sector is now open to foreign investment with national treatment.

For non-negative-list sectors, foreign investors register/file through the integrated enterprise registration and MOFCOM FDI information-reporting system rather than seeking prior approval; negative-list sectors require a formal approval/permit. Setup spans business-license issuance (SAMR), tax registration, bank account opening and SAFE/foreign-exchange registration.

There is no general statutory minimum registered capital for most companies; specific minimums apply only to regulated sectors such as banking, insurance and finance. Capital is set by the investor to suit the business plan.

Under Article 47 of the revised Company Law (effective 1 Jul 2024), shareholders of a limited liability company must pay in subscribed registered capital in full within five years of establishment; companies formed before 30 Jun 2024 must conform their schedules so contributions are completed by 30 Jun 2032. SAMR implementation measures took effect 10 Feb 2025.

Full establishment generally takes about one to three months depending on business type, including business license, tax and foreign-exchange registration; manufacturing or licensed activities take longer due to additional approvals.