Starting a business in China offers tremendous opportunities for foreign entrepreneurs.
## Business Structures
### WFOE (Wholly Foreign-Owned Enterprise)
– 100% foreign-owned
– Minimum capital: 100,000-500,000 RMB
– Setup time: 2-4 months
– Best for: Consulting, trading, manufacturing
### Joint Venture
– Shared ownership with Chinese partner
– Required for restricted industries
– Setup time: 3-6 months
### Representative Office
– No minimum capital
– Cannot earn revenue directly
– Setup time: 1-2 months
## Registration Process
1. Name approval (1-2 weeks)
2. Prepare documents (2-3 weeks)
3. Obtain business license (2-4 weeks)
4. Post-registration setup (2-3 weeks)
## Costs
| Item | Cost (RMB) |
|——|———–|
| Registration Agent | 10,000-30,000 |
| Registered Address | 5,000-20,000/year |
| Government Fees | 1,000-3,000 |
| Accounting (monthly) | 2,000-5,000 |
**Total First Year**: 50,000-150,000 RMB for WFOE
## Tax Obligations
– Corporate Income Tax: 25% (15% for high-tech)
– VAT: 6-13% depending on category
– Individual Income Tax: 3-45%
## Timeline
Total setup time: 7-13 weeks from start to operation.
For more information, explore our Business Tips section.