Worldwide
Setting up a company in China
Entry into the world's second economy: WFOE, joint venture or representative office. It takes the right structure and patience.
At a glance
Corporate tax
25%; 15% for high-tech enterprises
VAT
13% / 9% / 6% by sector
Foreign ownership
100% outside the negative list
Setup
2 to 3 months with all registrations
China is an indispensable but demanding market, with 1.4 billion consumers and the deepest manufacturing ecosystem in the world. Since the 2020 Foreign Investment Law, a wholly foreign-owned enterprise (WFOE) can be formed in any sector outside the negative list. Corporate tax is 25 percent; high-tech enterprises pay 15 percent and small, low-profit businesses lower effective rates.
The process covers SAMR registration, tax, foreign exchange (SAFE) and bank records; plan for two to three months. A representative office is fast but cannot earn revenue. For Turkish companies the usual scenario is a WFOE for import and sales, or a JV with a local partner.
Why here
When this jurisdiction is the right choice.
- Scale: the world's largest middle class and manufacturing base.
- Incentives in free trade zones and industrial parks.
- On-the-ground access to the technology and e-commerce ecosystem.
- Asia-Europe logistics through Belt and Road connections.
Entity types
Which structure, for whom.
WFOE
Wholly foreign-owned enterprise; full control, earns revenue, subscribed capital.
Joint venture
Joint venture with a Chinese partner; local knowledge and network, shared control.
Representative office
Liaison and market research; cannot earn revenue, limited staff.
Foreign-invested partnership
Flexible partnership without minimum capital; unlimited liability risk.
Process
Formation step by step.
- 01City and zone choice (free trade zone, industrial park)
- 02Business scope definition and negative list check
- 03Chinese name approval
- 04Articles, capital commitment, directors and legal representative
- 05SAMR business licence
- 06Official chops, tax registration, SAFE foreign exchange registration
- 07Bank accounts (capital and operating)
- 08Social insurance and sector permits where required
After formation
What has to happen every year.
- Monthly and quarterly tax filings (VAT, corporate tax)
- Annual audit and annual joint report (SAMR)
- Personal liability of the legal representative and chop control
- Tax and SAFE approval steps for profit repatriation
Frequently asked
The in-country registry, licence and agent steps of the formation file run through our licensed formation partners in the relevant jurisdiction. Structure design, contracts, the bank file and the tax and notification effect on the Turkish side are managed by Defensible. Rates and thresholds summarise the headline rules at the time of writing; we check the current text together on your own file.
Do I need a company to sell into China?
No; cross-border e-commerce and distributor models allow entry without a company. A WFOE comes into play when you need staff, stock or services on the ground. We choose the model first, then the structure.
Let's work out which structure fits you in 15 minutes.
Tell us where you sell, who you are and what you are aiming at; we will say in the call which jurisdiction and entity type make sense. Formation itself is a separate engagement, scoped and priced there.
Book a 15-minute call