How To Start A Foreign Business In China?

How To Start A Foreign Business In China?

Essentially, you have four options at hand, and your choice is dependent upon your budget and how you value the quality of the company setup process. 1.Look for an International Law Firm Premium large international law firms are well positioned to set up companies across China. They offer...

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Essentially, you have four options at hand, and your choice is dependent upon your budget and how you value the quality of the company setup process.

1.Look for an International Law Firm

Premium large international law firms are well positioned to set up companies across China. They offer comprehensive business incorporation service. You can expect bilingual staffs offering documents of all languages and total professionalism in their conduct. However, the costs can be very high, costing around RMB100,000 for one registration. And usually only big companies can afford that level of cost. Another issue is response time. Large law firms usually wont put you as a priority as they are dealing with multiple, larger cases at the same time.

2. Mid-Size Local China Business Services Provider

This is where YINGKE Company Registration Services is located, as we're empowered by the largest law firm in China, but operating as a mid-size local Chinese business services provider who has been in business for more than a decade. We provide the same quality of services to those international law firms, but at much more affordable rates. We have helped more than 10,000 foreign businesses set up in China.

We offer hands-on representatives with good local experience that put you to the right people in the right offices to reduce your incorporation times. We can also easily help you to find an office in which to base your company.

Typically setting up a WOFE in China with this size of firm will cost around RMB10-20,000.

3. Sole Trading China Business 'Expert'

Often staff who have worked for a mid-size firm in China will decide that they are going to go it alone.

Some of these people are very capable of giving a decent service as they have been in the industry for a long time.

Typically they'd try to offer the bargain basement prices for company setup, around RMB10,000 or less.


There is no guarantee that you will get good service as relying on one individual is always risky.

What you are sold may not be the facts. They may say that they can set up your kind of company, but it may be that they have never done this before and make mistakes during the incorporation period costing you time, money, and good standing with the local government of the city you wish to operate in.

May not have much ability to help you locate a suitable office.

They will often be swamped with work and are not able to give you the attention that you deserve.

4. DIY

You can always set up your own WOFE in China, that's no secret.

This is probably the lowest cost option, and would come in at under RMB10,000. 


The process is going to be a nightmare for 99% of foreign companies due to:

•It being completely in Chinese

•The need to enter into dialogue with local government officials

•Copious amounts of paperwork

•No assistance being given by the authorities, leaving much guesswork for the uninitiated

•Confusion about where to go to submit various paperwork, as there are several government offices involved

•You needing to find your own office and negotiate its contract with the local landlord

Do you need to pay international prices to set up your company? Certainly not. But when you start looking for the cheapest option you will soon find that what sounded like a bargain at the time will cost more later.

At the end of the day you get what you pay for, and by cutting corners on something as important as setting up your company correctly, you may well cause yourself unnecessary stress, delays to starting doing business in China, additional costs to re-submit and re-apply for certain steps in the process, and lose good standing with the local authorities who require things to be done correctly.

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