Frequently Asked Questions About China Business Setup
Answers to the most common questions Kerui receives from foreign investors about China company registration, Hong Kong setup, work visas, tax compliance, bank account opening, and cross-border advisory.
China Company Registration
Can a foreigner own 100% of a company in China
Yes. A WFOE allows full foreign ownership without a Chinese partner.
Do I need a Chinese business partner to register a company in China
No. Foreign investors can register a company with full ownership. A Chinese partner is not required.
Do I need to hire Chinese employees
In practice, most foreign-owned companies in China employ Chinese staff, as local hiring is typically required for bank accounts, certain licenses, and visa-related filings.
How long does company registration take
Standard China company registration and WFOE setup are publicly quoted at 5–7 working days after the required documents are signed and ready.
Which city is best for registration
Guangzhou is a recommended starting point, but the specific choice depends on the client's business model and operational needs. Kerui supports registration in Guangzhou, Foshan, Shenzhen, Yiwu, and Zhongshan.
Do I need to come to China in person for registration
Travel is not required for the registration step itself if the documents are properly certified. Coming in person is still recommended if you can, because some later services, such as bank account opening, require the relevant person to attend.
China Work Visa and Residence Permit
What are the basic requirements for a China work permit
The confirmed baseline includes a bachelor's degree or above, at least two years of relevant overseas work experience after graduation, and a valid no-criminal-record document.
Can I get a work visa without a bachelor's degree
The result depends on the actual applicant profile including education, work history, and case specifics. Kerui reviews each case individually.
Can I register a company and then apply for my own work visa
Yes. Foreign founders who register a company in China can then apply for their own work permit.
How long can I stay in China without frequent exit and re-entry
Determine the actual need first. If the goal is long-term business operation, the appropriate route is a work visa plus a residence permit. A residence permit allows continuous lawful stay without frequent border crossings.
Can I switch from a tourist visa to a work visa
It is possible in some cases, but attention to the current visa validity period is necessary. Kerui reviews the specific situation before advising.
What if my visa expires while I am outside China
A new application will be needed. Kerui can guide the re-application process.
Hong Kong Company Registration
Hong Kong Company vs China Company, which one should i choose
The answer depends on the business model and operating needs. A Hong Kong company generally works well for international trade and cross-border payments. A Mainland China entity is typically needed for local hiring, invoicing, and regulated business activities in China. Kerui can help evaluate both options.
Can I set up a Hong Kong company without visiting Hong Kong
Yes. Kerui provides one-stop registered office and company secretary services. The registration can be completed without in-person travel to Hong Kong.
Do I need a physical office address in Hong Kong
A registered address is required, and Kerui can provide this through the company secretary service. A dedicated physical office is not required for registration.
Is an audit required even if the company does not operate in Hong Kong
Yes. Typically, the first audit is required after the company's first financial year-end, which is usually 12 to 18 months after incorporation, regardless of where the actual operations take place.
Can a BVI company open a bank account in Hong Kong
Yes, it is possible. The outcome depends on bank assessment and KYC documentation.
Do I need to hire local employees in Hong Kong
No. There is no requirement to hire Hong Kong-based employees for a registered Hong Kong company.
Accounting and Tax Compliance
Does a WFOE need an annual audit
Yes. The annual audit must be completed by May 31 each year.
How much does bookkeeping cost per year
The service starts from $1,000 per year. The final fee depends on the operating model, invoice volume, and actual compliance workload.
Can I file only annually without monthly reporting
Under Chinese tax regulations, monthly filing is required. Annual-only filing is not sufficient.
What if past accounting was not done
Kerui provides catch-up filing services. The cost is assessed case by case based on the actual situation.
How much social insurance does a company pay per employee per month
The minimum monthly social insurance contribution varies by city and salary base. Kerui can confirm the exact figure for your case.
How can profits earned in China be repatriated
Repatriation of profits from China is legally permitted. The core principle is genuine compliance – once taxes are fully settled, profits can be freely remitted. Foreign individual investors may qualify for a temporary 20 percent personal income tax exemption. For foreign corporate investors, tax treaty benefits should be checked per the bilateral agreement.
Is an overseas trademark automatically protected in China
No. Trademark rights are territorial. A trademark registered overseas is not automatically protected in China. A separate China trademark registration is needed.
Where can I check the Foreign Investment Negative List
The latest version, the Special Administrative Measures for Foreign Investment Access (Negative List) 2024 Edition, can be found on the official websites of the National Development and Reform Commission, the Ministry of Commerce, the Chinese government portal, and the national foreign-invested enterprise registration online service system.
Cost, Planning and Risk FAQ
How can I keep costs low when entering China
Cost depends on the actual business plan. Kerui reviews the registered address requirement, the residential or living situation, and the real operating needs before recommending the most suitable route.
How far in advance should I plan
It is recommended to start planning 2 to 3 months before the intended start date, especially when work visa and residence permit timelines are involved. Approval is subject to policy changes and Kerui does not guarantee visa outcomes.
Can sensitive nationalities open a bank account
Yes, nationality affects the bank's assessment. Some nationalities may face additional review. Kerui advises on a case-by-case basis and does not promise account approval, as the bank retains independent decision-making authority.
Does trademark registration guarantee approval
No. Trademark applications may not be approved. Kerui provides guidance through the partner-execution process and recommends a trademark search before filing.
What if someone registers my brand first in China
Because China follows a first-to-file system, another party may register the brand first. If this happens, possible remedies include opposition, invalidation, or negotiation for purchase, depending on the specific situation. Kerui recommends considering trademark registration at the same time as company registration.
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