4.01 Creating a Chinese company

Before you create a Chinese company in mainland China make sure you fully understand whether you need to do this.

Examples of why you might need a Chinese business:

  1. Production costs cheaper in China
  2. Chinese government grants available
  3. Local Chinese investment available
  4. Local Chinese overseas branded services – e.g. coffee shop chain
  5. You wish to sell directly to businesses and consumers from within China
  6. Chinese government licensing is only available if you have a Chinese company; e.g. ICP certification

You do not need a Chinese business if you are selling into China from business / e-Commerce site located outside mainland China. i.e. Hong Kong, USA, UK, etc.

We would only recommend you consider creating a Chinese business if you have looked at all the other options first – see Routes to the Chinese market.

For more information please see: Creating a Chinese company


Subject Action Recommended Priority Checked?
Is a Chinese business required Do you need to create a Chinese business;

Routes to the Chinese market

Trading rights What Chinese trading rights do you require and are these available to foreign companies High  
Business plan Create and review detail business plan for the Chinese business High  
Capital requirement Chinese business needs to declare capital from the outset High  
International contracts Supplier contracts from your foreign company to the Chinese company to enable international payments Medium  
Accountant Appoint a local Chinese accountant Medium  
Chinese grants Chinese JV can apply for Chinese government grants Medium  

Version V1.4. - 20 June 2019

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