Day 0
Licence and books
The unified code on the licence is also the tax number. Within 15 days, set up the accounting books; returns are due from the following month, even nil ones.
If missed: up to RMB 2,000; in serious cases, RMB 2,000–10,000

Apostille instead of legalisation
Since 7 November 2023, China has been a party to the Hague Convention: for documents from member countries, an apostille is enough. Not for documents from the UAE: the UAE is not a party to the convention, so consular legalisation is required.
Company Registration in the UAE and Abroad
A company in mainland China is needed when the business operates inside the country: a warehouse, staff, sales to Chinese clients in yuan. It is a full legal entity with its own address, capital, accounting and monthly reporting. If the task is purchasing and paying suppliers, we’ll be honest and suggest a simpler route.
In short
A company in mainland China is registered in 3–7 days once the full document set is ready: the package is from €2,880, and the registered address from €1,440 a year. The registered capital is paid in within 5 years; the standard corporate income tax rate is 25%, effectively 5% for small enterprises.
Checked 18 October 2026 · Kermen Tserenkeeva
Cost of a mistake
Licence revoked
If the company has not started operations within 6 months of registration without a valid reason, the registrar may revoke its business licence.
How to avoid itA 100% foreign-owned company is an ordinary Chinese legal entity with a real address, capital and monthly reporting. It makes sense when the money is earned inside China.
A WFOE is an LLC
Since 2020, foreign-invested companies have been registered under the general company law; WFOE is the familiar name. Only industries on the negative list are restricted.
The address must be real
The registered address must be real premises suitable for registration. Virtual addresses are not accepted everywhere; the rules depend on the city and district. The address is paid for separately.
Capital within five years
Under the Company Law as amended in 2024, an LLC’s registered capital must be paid in full within 5 years. The declared amount is the founder’s obligation, not a formality.
Reporting every month
Tax returns are filed monthly or quarterly, even nil returns. The annual report is due by 30 June, and with staff, social insurance is added.
Expert tip
We start with the question “why”: for purchasing and export, a Hong Kong company or an NRA account is usually enough. A Chinese company pays off when there are sales, a team or a warehouse in China.
Kermen TserenkeevaSenior Lawyer · Company registrationWho it suits
A good fit if
Consider something else if
Comparison
Prices are our “from” packages; bank terms reflect our practice as of October 2026. The decision to open an account rests with the bank.
3–4 weeks
usually, counted from your documents; tokens take about 2 more weeks
—
Not in China
your company reports in its own country
No
Click an option to highlight it across every parameter
Benefits
Let’s discuss the details
For purchasing and export, it is most often replaced by a Hong Kong company with an NRA account. Describe what you will do in China — we’ll compare both options by costs and obligations.
Process
Every step is visible in the client portal: what’s happening now and whether we need anything from you.
Steps on your side: 1 of 7
We analyse the model: sales, staff, warehouse. We compare it with a Hong Kong company and an NRA account. If China is needed, we choose the city and district and check the activity against the negative list and licensing requirements.
Step 1 of 7
We analyse the model: sales, staff, warehouse. We compare it with a Hong Kong company and an NRA account. If China is needed, we choose the city and district and check the activity against the negative list and licensing requirements.
Company calendar
Amounts are under PRC law as of October 2026. The authority usually orders the breach to be corrected by a deadline, and the size of the fine depends on how serious it is.
Day 0
The unified code on the licence is also the tax number. Within 15 days, set up the accounting books; returns are due from the following month, even nil ones.
If missed: up to RMB 2,000; in serious cases, RMB 2,000–10,000
6 months
If the company has not started operations within 6 months of registration without a valid reason, the registrar may revoke the licence — unless the business has been formally suspended.
If missed: revocation of the business licence
Every month or quarter
15 days after the month or quarter
VAT and corporate income tax prepayment
Returns are filed even with zero revenue. The tax office sets the period: monthly under the general regime, quarterly for small-scale taxpayers.
If missed: up to RMB 2,000; in serious cases, RMB 2,000–10,000; late payment — 0.05% a day
By the 15th of the following month
Tax on staff salaries
The company withholds tax from payments to staff, remits it and files a report on each recipient.
If missed: up to RMB 2,000; in serious cases, RMB 2,000–10,000
Every year
By 31 May
Annual corporate income tax reconciliation
For the previous calendar year, within 5 months of its end: the year’s result is reconciled with the prepayments, and the difference is paid or refunded.
If missed: up to RMB 2,000; in serious cases, RMB 2,000–10,000; late payment — 0.05% a day, unpaid tax without a return — from 50% to five times the tax
1 January – 30 June
Annual report and investment report
A single filing for the previous year in the state information disclosure system. A company set up this year files for the first time next year.
If missed: the register of non-compliant companies; if the investment report is not corrected within 20 working days of a demand — RMB 100,000–500,000
On specific events
30 days from the employee’s start date
Social insurance and housing fund
Each employee is registered with social insurance and the housing fund, and contributions are paid monthly; an employee’s waiver of social insurance is invalid.
If missed: if not corrected on time: social insurance — 1–3 times the contributions, housing fund — RMB 50,000–300,000; late social insurance contributions — 0.05% a day
20 working days after the contribution
Capital contributions are public
Details of each contribution are published in the information disclosure system. The full declared capital is paid in within 5 years of registration.
If missed: for the founder, if not paid in on time — RMB 50,000–200,000, in serious cases 5–15% of the unpaid amount; for the company, if not published — RMB 10,000–50,000
Documents
For registration — from the founder and director
If the founder is a company
On the company in China
For the bank account
Timing and budget
Registration is the smaller part of the cost. A company in China requires accounting, an address and reporting every month, and the registered capital must be paid in within 5 years.
Tax incentives
Incentives are not granted automatically: small enterprise status is tested on the full-year results, and the company supports the tax treaty rate with its own documents.
What it gives: effectively 5% instead of 25%: 25% of profit is taxable, at a 20% rate
Condition: annual profit up to RMB 3 million, up to 300 staff, assets up to RMB 50 million
Does not cover: industries the state restricts or prohibits
What it gives: 50% off: stamp duty, property tax, land use tax, urban construction tax, resource tax, farmland occupation tax, education surcharges
Condition: the company is a small enterprise or a small-scale VAT taxpayer
Does not cover: stamp duty on securities transactions and water resource tax
What it gives: simplified VAT at 1%
Condition: small-scale taxpayer with revenue up to RMB 5 million a year
Does not cover: sale and lease of real estate, transfer of land rights
What it gives: no VAT at all
Condition: a small-scale taxpayer’s revenue is below RMB 100,000 a month or below RMB 300,000 a quarter
Does not cover: companies under the general VAT regime
The thresholds are strict: profit above RMB 3 million means 25% tax on the entire profit; revenue that reaches the VAT threshold means VAT on the period’s entire revenue. Staff and assets are measured as the quarterly average for the year.
What it gives: 5% instead of 10% withholding tax on dividends
Condition: the Hong Kong company is the beneficial owner of the income and directly holds at least 25% of the capital
Does not cover: structures where obtaining the benefit is one of the main purposes
What it gives: 7% instead of 10% withholding tax on dividends
Condition: the recipient is the beneficial owner of the income and a UAE tax resident
What it gives: no withholding tax on the dividends while the money stays invested
Condition: the profit goes straight into a capital increase, a new company or a stake bought from an unrelated seller in China — without passing through other accounts
Does not cover: industries prohibited for foreign investment, and buying listed shares other than strategic investments
What it gives: 10% of the reinvested amount is credited against withholding tax on future income from that company; where the treaty rate is below 10%, at that rate: 5% for Hong Kong, 7% for the UAE
Condition: an industry in the catalogue of those encouraged for foreign investment, the money goes directly from the Chinese company’s account, and the investment is held for at least 5 years
Does not cover: buying listed shares, other than strategic investments
Dividends are paid from profit after tax, after covering prior-year losses and allocating 10% to the reserve fund while it is below 50% of capital. The recipient determines its own entitlement to the treaty rate and keeps the documents, including proof of residence: the tax office checks them later.
Getting it right
Click a card to see how to do it right · 0 of 8 open
01 What people often do
Opening a company in China just to get an account for paying suppliers.
02 What people often do
Declaring a large registered capital “to look solid”.
03 What people often do
Registering the company at a cheap virtual address.
04 What people often do
Not filing returns while there is no turnover.
05 What people often do
Certifying the passport in the UAE and counting on an apostille.
06 What people often do
Agreeing with staff that they will work without social insurance.
07 What people often do
Skipping the annual report because it’s the company’s first year.
08 What people often do
Registering a company “for later” and not starting operations.
FAQ
Kermen Tserenkeeva — Company registration
A Hong Kong company works with China and the world from outside: it trades, pays suppliers, holds accounts. A company in mainland China works inside the country: it sells to Chinese clients, hires people, issues fapiao. But it comes with an address, capital, accounting and monthly returns.
Deadlines, amounts and rules are based on these sources as of the check date. Rules change: check with us before deciding.
Often goes with this

China
An NRA account with a Chinese bank without a company in China — for paying Chinese suppliers and receiving revenue.

China
After registration — returns every month or quarter even with zero revenue, the annual tax reconciliation and the annual report: China company support.

Hong Kong
If the business is buying in China and selling to other countries: a Hong Kong company is simpler and cheaper to maintain.
Next step
Tell us what the company will do in China: sell, hire, store goods or manufacture. We’ll compare it with a Hong Kong company and an NRA account, and if China is the right choice, we’ll find an address, prepare the documents and handle registration.
Kermen TserenkeevaSenior Lawyer · Company registration