Company formation in China and checks on Chinese partners
How a foreigner opens a company in China in 2026, how much capital to commit, and how to check a Chinese supplier or partner before a deal.
A foreigner opens a wholly foreign-owned company in China, usually a limited liability company. It is registered by the local administration for market regulation, and since 2020 the Foreign Investment Law applies: outside the restriction list a foreign company registers on the same terms as a Chinese one.
The negative list for foreign investment was cut from 31 to 29 items from 1 November 2024, and manufacturing is fully open, according to the Chinese government portal. Some services remain closed or restricted: telecoms, parts of education, healthcare, publishing and others.
How much it costs to open a company in China
The state sets no minimum capital for an ordinary company, but since 1 July 2024 the revised Company Law requires shareholders to pay subscribed capital in full within 5 years. Companies registered earlier must bring their schedules into line by 30 June 2027, according to the Chinese government. Inflating capital to look solid is now risky: the unpaid contribution becomes a real debt.
The main costs are not registration fees but the office address (no lease, no registration), accounting and the mandatory annual report. Our turnkey formation starts at $12,300 for the basic package; Shenzhen and Shanghai options with a Hong Kong shareholder and the Chinese counterparty check are in the price table below.
Capital must now be paid in within 5 years - inflating it for show is risky
The law does not stop you from registering a foreign-invested company in China on your own. But mistakes cost more than the fees: declared capital that must then be paid in within 5 years, an address without a lease, an activity on the restricted list for foreigners, missed annual reporting that puts the company on the list of unreliable firms. Murblz specialists choose the structure and capital, prepare documents and legalisation, register the company and help open an account at a Chinese bank.
The cost of support depends on the company type, ownership structure and whether you need an account; a manager will calculate it in the chat.
How registration works
- Restriction list check. We match the activity against the list: fully open, restricted or closed to foreigners.
- Name and address. Approval of a Chinese name and an office lease.
- Filing with the market regulation administration. Constitutional documents and details of shareholders and the legal representative, after which a business licence is issued.
- Seals, tax and foreign exchange. Making the company seals, tax registration and registration for foreign exchange.
- Bank account. Opening a basic account and a capital account.
Timing depends on the city and the activity: with a standard activity and ready documents registration takes a few weeks, while sector permits add time.
What documents you need
From an individual shareholder, a passport; from a corporate shareholder, a register extract and articles. Documents issued abroad are apostilled: China has been party to the Hague Apostille Convention since 7 November 2023, so consular legalisation is no longer needed for member states. Documents are translated into Chinese. You also need details of the legal representative, director and supervisor, and an office lease.
Company taxes in China
The standard corporate income tax rate is 25%. Small low-profit enterprises enjoy a relief with an effective burden of 5% until the end of 2027. VAT depends on the sector: 13% on goods, 9% and 6% on many services. Every company must file an annual report with the state enterprise information disclosure system, or it is placed on a list of violators.
How to check a Chinese company
Before prepaying a supplier or partner in China, check the company in state registers. The main one is the National Enterprise Credit Information Publicity System: it shows the full Chinese name, registration number, legal representative, subscribed capital, date of incorporation, business scope, annual reports and any listing as a violator. The register of dishonest debtors in the court enforcement system is checked separately.
- The English name means nothing. Legally the company is defined by its Chinese name and 18-character unified social credit code.
- Match the bank details. The payee must be the company in the register, not an individual or an intermediary.
- Check the status. A violator listing or pending court cases is a reason to stop the deal.
The registers are in Chinese and often block access from abroad. Our counterparty check in China uses these sources, with a translation and a risk conclusion.
What we do
Murblz specialists check the activity against the restriction list, choose the city and form, prepare documents with an apostille and translation, and handle registration, seals, tax registration and the account. For deals with Chinese suppliers we check the counterparty in state registers before payment.
Fees
| Service | Price |
|---|---|
| Turnkey company registration (basic package) | $12 300 |
| Bank account opening in a Chinese bank | €12 000 |
| Counterparty due diligence in China | $2 200 |
| WFOE registration in Shenzhen (with HK shareholder) | from $5 630 |
| WFOE registration in Shanghai (with HK shareholder) | from $5 690 |
We will calculate online the cost of registering and running your company for the first year.
See also
Business account · Personal account · Investment property · Country taxes · All country programs
FAQ
How do I check a company in China?
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Can a foreigner own 100% of a company in China?
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Want to open a company in China?
We choose the foreign-invested company form in China, check restrictions for your activity, register it and help with the bank account. The catalogue covers every country.
The Murblz consultant replies straight away in the chat on this page. Describe your situation and we will work it out together.
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