Foreigners can register companies in China

When foreigners are engaged in business activities in China to receive payments, they need a bank account with a domestic company for legal transactions (no salary income is involved here), so it is reasonable and necessary to set up a company in China. Foreigners registering a company in China fall into the following main categories.

1. Foreigners entering China on a business visa (M) and having a long-term relationship with a Chinese company

If a foreigner has already registered a company in China and is operating legally and normally, he or she can apply for a visa in the capacity of a legal representative and use the domestic company account for transactions.

2. Foreigners with student visas who need to collect money when they intend to start a business in China

The law states that a person on a student visa cannot work for pay. If the applicant states 'start a business' on the student visa, there is a buffer period of 1-3 months before the company is registered and fees can be legally charged without converting to a work visa.

3. Foreigners who are currently on a work visa and work with other companies

Once you have signed an employment contract with a company and obtained a work visa, you cannot work for another company as an employee and it is illegal to receive income from another company in this way.

However, a company registered as an independent individual can enter into contracts with other companies and make a profit (in which case the expatriate cannot hold a visa as a legal person in his or her own company).

4. Foreigner company registration process in China

Foreigners wishing to register a company will need to prepare the capital, and the company will need to have one eligible legal entity, one shareholder and one supervisor.

The steps to register a company are as follows：

1) Complete the Registration of Companies Information Form

2) Address audit, name verification

3) Signing of business documents

4) Signing and mailing of business documents

5) Seal engraving (official seal, corporate seal, etc.)

6) Awaiting business licence and official seal

7) Bank account opening, tax approval, etc.