Frequently Asked Questions About China Business Setup

Question 1

Can a foreigner own 100% of a company in China

Accepted Answer

Yes. A WFOE allows full foreign ownership without a Chinese partner.

Question 2

Do I need a Chinese business partner to register a company in China

Accepted Answer

No. Foreign investors can register a company with full ownership. A Chinese partner is not required.

Question 3

Do I need to hire Chinese employees

Accepted Answer

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.

Question 4

How long does company registration take

Accepted Answer

Standard China company registration and WFOE setup are publicly quoted at 5–7 working days after the required documents are signed and ready.

Question 5

Which city is best for registration

Accepted Answer

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.

Question 6

Do I need to come to China in person for registration

Accepted Answer

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.

Question 7

What are the basic requirements for a China work permit

Accepted Answer

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.

Question 8

Can I get a work visa without a bachelor's degree

Accepted Answer

The result depends on the actual applicant profile including education, work history, and case specifics. Kerui reviews each case individually.

Question 9

Can I register a company and then apply for my own work visa

Accepted Answer

Yes. Foreign founders who register a company in China can then apply for their own work permit.

Question 10

How long can I stay in China without frequent exit and re-entry

Accepted Answer

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.

Question 11

Can I switch from a tourist visa to a work visa

Accepted Answer

It is possible in some cases, but attention to the current visa validity period is necessary. Kerui reviews the specific situation before advising.

Question 12

What if my visa expires while I am outside China

Accepted Answer

A new application will be needed. Kerui can guide the re-application process.

Question 13

Hong Kong Company vs China Company, which one should i choose

Accepted Answer

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.

Question 14

Can I set up a Hong Kong company without visiting Hong Kong

Accepted Answer

Yes. Kerui provides one-stop registered office and company secretary services. The registration can be completed without in-person travel to Hong Kong.

Question 15

Do I need a physical office address in Hong Kong

Accepted Answer

A registered address is required, and Kerui can provide this through the company secretary service. A dedicated physical office is not required for registration.

Question 16

Is an audit required even if the company does not operate in Hong Kong

Accepted Answer

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.

Question 17

Can a BVI company open a bank account in Hong Kong

Accepted Answer

Yes, it is possible. The outcome depends on bank assessment and KYC documentation.

Question 18

Do I need to hire local employees in Hong Kong

Accepted Answer

No. There is no requirement to hire Hong Kong-based employees for a registered Hong Kong company.

Question 19

Does a WFOE need an annual audit

Accepted Answer

Yes. The annual audit must be completed by May 31 each year.

Question 20

How much does bookkeeping cost per year

Accepted Answer

The service starts from $1,000 per year. The final fee depends on the operating model, invoice volume, and actual compliance workload.

Question 21

Can I file only annually without monthly reporting

Accepted Answer

Under Chinese tax regulations, monthly filing is required. Annual-only filing is not sufficient.

Question 22

What if past accounting was not done

Accepted Answer

Kerui provides catch-up filing services. The cost is assessed case by case based on the actual situation.

Question 23

How much social insurance does a company pay per employee per month

Accepted Answer

The minimum monthly social insurance contribution varies by city and salary base. Kerui can confirm the exact figure for your case.

Question 24

How can profits earned in China be repatriated

Accepted Answer

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.

Question 25

Is an overseas trademark automatically protected in China

Accepted Answer

No. Trademark rights are territorial. A trademark registered overseas is not automatically protected in China. A separate China trademark registration is needed.

Question 26

Where can I check the Foreign Investment Negative List

Accepted Answer

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.

Question 27

How can I keep costs low when entering China

Accepted Answer

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.

Question 28

How far in advance should I plan

Accepted Answer

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.

Question 29

Can sensitive nationalities open a bank account

Accepted Answer

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.

Question 30

Does trademark registration guarantee approval

Accepted Answer

No. Trademark applications may not be approved. Kerui provides guidance through the partner-execution process and recommends a trademark search before filing.

Question 31

What if someone registers my brand first in China

Accepted Answer

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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