Yes. Foreign investors can establish a Wholly Foreign-Owned Enterprise (WFOE) in most industries and maintain 100% ownership without a Chinese partner.

No. Most industries allow full foreign ownership. However, a few restricted sectors may still require Chinese participation.

The WFOE (Wholly Foreign-Owned Enterprise) is the most popular structure because it gives investors full operational control.

Most companies can be established within 4–8 weeks, depending on the city and business scope.

The required documents may vary depending on the company structure and location. In most cases, foreign investors will need to prepare:

• Valid passport (original passport or notarized/authenticated documents may be required)
• Proposed company name
• Business scope
• Shareholder and director information
• Registered business address in China

In many cases, yes. Most incorporation procedures can be completed remotely through authorized service providers.

China now uses a subscribed capital system. Capital does not always need to be paid immediately.

Yes. A registered company can legally recruit Chinese staff and contribute to social insurance.

Yes. After tax registration, companies can issue official VAT invoices (Fapiao).

Yes. After incorporation, the company can apply for corporate bank accounts with Chinese banks.

A Free Trade Zone is a special economic area that offers streamlined administrative procedures and policies designed to facilitate international business and investment.

The Shanghai Free Trade Zone is one of China’s most established FTZs and remains a preferred choice for multinational corporations, international traders, and financial services companies.

Benefits may include:

• Simplified registration procedures
• Easier customs clearance
• Enhanced cross-border trade support
• Access to pilot policy programs
• Greater operational flexibility

Yes. Hong Kong allows 100% foreign ownership, and there are no nationality restrictions on shareholders or directors. Overseas investors can fully own and manage a Hong Kong company without needing a local partner.
A Hong Kong company can be established with just one shareholder and one director, making it one of the most accessible jurisdictions for international entrepreneurs.

Most Hong Kong companies can be incorporated within 1–3 business days after all required documents are submitted and approved.

The registration process is efficient and can usually be completed remotely without visiting Hong Kong.

Typically, investors need:

• Passport copy
• Proof of address
• Proposed company name
• Shareholder information
• Director information

Additional documents may be required depending on the business structure and banking requirements.

Yes. Every Hong Kong company must appoint a company secretary in accordance with local regulations.

The company secretary is responsible for maintaining statutory records, filing annual returns, and ensuring ongoing compliance with Hong Kong corporate requirements.

Hong Kong does not impose a strict minimum capital requirement.
Most companies are established with:

• HKD 10,000 authorized share capital
• HKD 1 issued share capital
  This makes Hong Kong an attractive jurisdiction for startups and international entrepreneurs.

Yes.Hong Kong companies can apply for:

• Hong Kong corporate bank accounts
• International banking accounts
• Multi-currency accounts

Depending on the bank and business activities, account approval may take anywhere from a few days to several weeks.

Once established, Hong Kong companies can receive international payments from customers worldwide in multiple currencies.

Yes.Many foreign investors use a Hong Kong company as the shareholder of a China WFOE.

Hong Kong is one of the largest sources of foreign direct investment into Mainland China and serves as an important gateway for international businesses entering the Chinese market.

Its legal system, financial infrastructure, and proximity to China make it a preferred holding structure for China market entry.

Yes.Shareholders can be added, removed, or transferred through proper corporate filings.

This flexibility allows companies to bring in investors, restructure ownership, or expand operations as their business grows.

Yes.Hong Kong companies can legally hire both local and international employees.

Businesses that recruit overseas talent may also sponsor employment visa applications where applicable.

All Hong Kong companies must maintain ongoing compliance obligations, including:

• Annual Returns
• Accounting records
• Financial reporting
• Corporate record maintenance

Failure to comply may result in penalties or legal complications.

Hong Kong remains one of the world’s most popular business jurisdictions because it offers:

• Low tax rates
• International banking access
• Strong legal framework
• Global business reputation
• Efficient company formation procedures

These advantages make Hong Kong attractive to entrepreneurs, multinational corporations, and international investors.

Yes.Hong Kong continues to operate a territorial tax system.

In general, profits generated outside Hong Kong may not be subject to Hong Kong profits tax, depending on the specific facts and circumstances of the business.

This tax structure remains one of the key reasons many international businesses choose Hong Kong.

Yes.Hong Kong companies can conduct business with customers, suppliers, and partners worldwide.

Many international trading companies, e-commerce businesses, and consulting firms use Hong Kong entities to manage their global operations.

Yes.Hong Kong companies can legally own:

• Trademarks
• Patents
• Copyrights
• Overseas company shares
• International investments
• Overseas real estate

For this reason, many businesses use Hong Kong companies as international holding structures.

Hong Kong is particularly attractive for:

• International Trade
• E-commerce
• Consulting
• SaaS Businesses
• Technology Companies
• Investment Holding
• Sourcing & Procurement

The combination of low taxation, global banking access, and international credibility makes Hong Kong suitable for a wide range of business models.

Startups choose Hong Kong because it offers:

• Fast incorporation
• Flexible ownership structures
• International credibility
• Global payment access
• Strong legal protection

These benefits allow founders to establish and scale businesses efficiently in international markets.

Common mistakes include:

• Choosing the wrong business structure
• Ignoring annual compliance requirements
• Opening a company without banking preparation
• Poor accounting and record keeping

Working with experienced corporate service providers can help businesses avoid these common issues and maintain compliance.

A China Work Visa, commonly known as a Z Visa, allows foreign nationals to legally enter China for employment purposes. After arriving in China, the visa must typically be converted into a residence permit before the holder can legally work and reside in the country.

Yes. Foreign nationals can legally work in China if they obtain a valid work permit and residence permit sponsored by a qualified employer or their own registered company.

Yes. In most cases, your employer must first obtain a Foreigner’s Work Permit Notice before you apply for the Z Visa at a Chinese embassy or consulate.

The entire process usually takes between 4 and 8 weeks, depending on the city, industry, document preparation, and government processing times.

Yes. Many foreign entrepreneurs establish a Wholly Foreign-Owned Enterprise (WFOE) in China and apply for a work permit through their own company.

Typical documents include a valid passport, degree certificate, employment contract, work permit notice, criminal record check, and medical examination report.

For most standard work permit applications, a bachelor’s degree and at least two years of relevant work experience are required. However, exceptions may apply for senior executives, investors, and highly skilled professionals.

No. Working on a tourist visa, business visa, or other unauthorized visa categories is illegal and may result in fines, deportation, or future visa restrictions.

Yes. Spouses and children may apply for dependent visas and residence permits to accompany eligible foreign workers.

Not automatically. A dependent visa does not provide work authorization. Your spouse must obtain their own work permit and residence permit if they wish to work legally.

A Work Visa allows entry into China for employment purposes. A Work Permit is the official authorization that allows a foreigner to work legally after arriving in China.

The initial visa is typically for entry purposes. After arrival, it is converted into a residence permit, which is usually valid for one year and can be renewed.

Yes. However, your current work permit must be canceled or transferred, and your new employer must sponsor a new work permit application.

The strongest demand is currently found in:

• Artificial Intelligence
• Semiconductor Manufacturing
• Healthcare
• International Trade
• Education
• Renewable Energy
• Advanced Manufacturing

Yes. Foreign investors who actively manage a registered Chinese company may qualify for a work permit and residence permit.

China does not currently have a dedicated startup visa similar to some countries. However, entrepreneurs can establish a company and obtain a work permit through their business operations.

Foreign nationals who meet certain investment, employment, or residency requirements may be eligible to apply for permanent residency, commonly known as the China Green Card.

China classifies foreign workers into three categories: A, B, and C.

Class A is designed for highly skilled professionals, senior executives, and top talent. Applicants in this category often enjoy simplified procedures and faster approvals.

Popular cities include:

• Shanghai
• Shenzhen
• Suzhou
• Hangzhou
• Chengdu
• Guangzhou

These cities offer strong international communities, modern infrastructure, and convenient business environments.

Yes. A legally registered WFOE can sponsor work permits and residence permits for qualified foreign employees and company executives.

The most common route is to establish a WFOE, obtain the necessary business licenses, and apply for a work permit through the company.

China continues to attract entrepreneurs because of its:

• Large consumer market
• Manufacturing ecosystem
• Strong supply chains
• Growing technology sector
• Access to global trade opportunities

Yes. Foreign-owned companies are subject to the same tax regulations as domestic companies and must comply with Chinese tax filing and reporting requirements.

Yes. Every registered company in China must maintain accounting records and submit tax filings, regardless of whether it generates revenue.

Yes. Even if a company has no business activity, it is generally required to submit zero-tax filings and maintain compliance with local tax authorities.

Failure to file taxes may result in fines, penalties, abnormal business status, restrictions on legal representatives, and difficulties when renewing licenses or closing the company.

Most companies are required to submit monthly, quarterly, and annual tax reports depending on their business activities and tax registration status.

The standard Corporate Income Tax (CIT) rate is 25%. However, qualified High and New Technology Enterprises (HNTEs) may enjoy a reduced rate of 15%.

Value-Added Tax (VAT) is a consumption tax applied to the sale of goods, services, and imports. VAT rates vary depending on the industry and transaction type.

The most common VAT rates are:

13% for goods and manufacturing

9% for transportation and construction

6% for modern services and consulting

Specific rates depend on the business sector.

Yes. Certain exporters and qualifying businesses may apply for VAT rebates or refunds under applicable regulations.

A Fapiao is an official tax invoice issued through China’s tax system. It serves as proof of a transaction and is often required for accounting and tax deduction purposes.

Yes. After completing tax registration and obtaining approval from tax authorities, a company can issue official invoices.

Companies should maintain:

• Financial statements
• Tax records
• Payroll records
• Bank statements
• Contracts
• Invoice records

These documents are important for audits and compliance reviews.

Many foreign-invested companies are required to undergo annual financial reporting procedures and submit annual compliance reports to relevant authorities.

Bookkeeping involves recording financial transactions, while tax filing involves reporting taxable activities and paying taxes to government authorities.

Although possible, most foreign investors choose professional accounting firms because Chinese tax regulations are complex and frequently updated.

A trading company may be subject to:

• Corporate Income Tax
• Value-Added Tax
• Surcharges
• Employee-related taxes and contributions

Consulting companies typically pay:

• Corporate Income Tax
• VAT on service income
• Employee-related taxes

Yes. Employers are generally responsible for withholding individual income tax and making required social insurance contributions.

Individual Income Tax is a tax imposed on employee income. Employers are generally responsible for withholding and remitting the tax on behalf of employees.

Foreign employees working in China may be subject to Individual Income Tax depending on their residency status, income source, and applicable tax treaties.

Several cities actively attract foreign investment through incentives and subsidies, including:

• Shanghai
• Shenzhen
• Suzhou
• Ningbo
• Chengdu

Benefits may include office rent subsidies, R&D grants, talent incentives, and reduced tax burdens for qualifying businesses.

An HNTE is a government-recognized technology company that may qualify for tax incentives, including a reduced Corporate Income Tax rate of 15%.

Government support is often available for:

• Artificial Intelligence
• Biotechnology
• Semiconductor Manufacturing
• Renewable Energy
• Advanced Manufacturing
• Robotics

Suzhou offers strong industrial parks, government support programs, R&D incentives, and proximity to Shanghai’s talent and financial resources.

Yes. Depending on the location and industry, companies may qualify for grants related to investment, innovation, talent recruitment, exports, and research activities.

Transfer pricing refers to transactions between related companies. Businesses with international operations may need to comply with transfer pricing regulations and documentation requirements.

Yes. Qualified companies may enjoy additional deductions for eligible research and development expenses.

Suzhou, Dongguan, Ningbo, and several development zones across China frequently offer incentives for advanced manufacturing projects.

China provides access to skilled engineers, large consumer markets, government support programs, and innovation-focused industrial clusters.

For many industries, yes. While tax rates are not the lowest globally, companies often benefit from market access, supply chain advantages, government incentives, and industry-specific support policies.

The most common mistake is assuming that inactive companies do not need accounting or tax filing. Even dormant companies generally have compliance obligations.

No. Companies usually need to complete tax clearance procedures before they can legally close or deregister.

Professional accounting firms help businesses:

• Maintain compliance
• Reduce tax risks
• Prepare financial reports
• Handle audits
• Manage communication with tax authorities

A China sourcing service helps overseas buyers identify reliable suppliers, negotiate prices, manage production, conduct quality inspections, and arrange international shipping. It reduces risks and improves purchasing efficiency.

Many buyers use sourcing agents because they may not speak Chinese, understand local business practices, or have the resources to visit factories. A professional sourcing partner helps bridge these gaps.

Yes. GEI assists businesses in identifying qualified manufacturers, verifying suppliers, negotiating pricing, and managing procurement projects across multiple industries.

The most effective approach is to evaluate suppliers based on:

• Business licenses
• Factory audits
• Export experience
• Certifications
• Production capacity
• Customer references

Verification methods include:

• Checking the business license
• Reviewing company registration records
• Conducting factory audits
• Confirming export history
• Verifying certifications

A factory audit is an on-site assessment of a supplier’s operations, production capabilities, quality control systems, and compliance standards before placing orders.

Factory audits help buyers:

• Confirm the supplier is a real manufacturer
• Evaluate production capacity
• Assess quality management systems
• Reduce procurement risks

Yes. GEI can assist with supplier verification, factory inspections, production monitoring, and quality control services throughout China.

Quality inspection involves checking products before shipment to ensure they meet agreed specifications, quality standards, and packaging requirements.

Pre-shipment inspections help identify defects before products leave the factory, reducing costly returns and customer complaints.

China remains one of the world’s largest manufacturing hubs due to:

• Competitive pricing
• Extensive supply chains
• Skilled workforce
• Large production capacity
• Efficient export infrastructure

Yes. Despite rising labor costs, China remains highly competitive because of its mature supply chains, manufacturing expertise, and ability to scale production quickly.

Shenzhen is home to a dense network of technology companies, electronics manufacturers, engineers, and suppliers, making it one of the world’s most innovative hardware ecosystems.

Popular categories include:

• Electronics
• Machinery
• Furniture
• Consumer Goods
• Medical Devices
• Textiles
• Industrial Equipment
• Renewable Energy Products

Buyers can reduce costs by:

• Purchasing directly from manufacturers
• Consolidating orders
• Negotiating payment terms
• Optimizing logistics
• Conducting supplier comparisons

MOQ stands for Minimum Order Quantity, which is the smallest order volume a supplier is willing to produce.

Many factories accept smaller orders, particularly for sample production and new product development. However, pricing may be higher for low-volume purchases.

Common payment methods include:

• Bank Transfer (T/T)
• Letter of Credit (L/C)
• Alibaba Trade Assurance
• International Payment Platforms

Partial advance payments are common in international trade. Buyers should verify suppliers carefully before making payments.

Common mistakes include:

• Choosing suppliers based solely on price
• Skipping factory verification
• Ignoring quality inspections
• Poor contract management
• Failing to protect intellectual property

China offers a unique combination of manufacturing capacity, logistics infrastructure, skilled labor, and integrated supply chains that are difficult to replicate elsewhere.

High-growth sectors include:

• Electric Vehicles (EV)
• Battery Technology
• Renewable Energy
• Medical Devices
• Robotics
• Artificial Intelligence Hardware

China generally offers stronger supply chains, higher production capacity, and better technical expertise, while Vietnam may offer lower labor costs in certain industries.

China usually provides more mature manufacturing ecosystems and export infrastructure, while India offers advantages in specific sectors such as pharmaceuticals and software services.

Yes. Businesses can protect trademarks, patents, copyrights, and trade secrets through proper registration and legal agreements.

Yes. Trademark registration should ideally be completed before engaging suppliers to better protect your brand and intellectual property.

Yes. GEI can assist with supplier communication, contract negotiation, pricing discussions, and procurement management.

Yes. GEI can provide end-to-end sourcing support, including supplier search, factory verification, quality inspections, logistics coordination, and procurement consulting.

Global Eastern Investment is a professional business consulting and corporate service provider specializing in helping foreign investors establish, manage, and expand their businesses in China and Hong Kong. The company provides one-stop solutions covering company formation, accounting, tax compliance, work permits, business licensing, sourcing support, and market entry services.

Global Eastern Investment has been assisting international clients with business expansion and investment solutions in China for over 10 years. Throughout the past decade, we have successfully supported entrepreneurs, investors, and companies from around the world with company registration, visa services, accounting and tax compliance, business consulting, and market entry strategies. Our experienced team is committed to providing professional, efficient, and reliable support to help clients establish and grow their businesses in China with confidence.

Global Eastern Investment offers a comprehensive range of services, including:

• China Company Registration
• WFOE Formation
• Hong Kong Company Registration
• Accounting & Tax Services
• China Work Permit Applications
• Residence Permit Support
• Business Licensing
• Bank Account Opening Assistance
• China Sourcing & Procurement Services
• Market Entry Consulting

Global Eastern Investment provides a one-stop business solution for foreign investors.

Clients benefit from:

• Local expertise
• Multilingual support
• Regulatory compliance guidance
• End-to-end project management
• Long-term business support

No.Global Eastern Investment supports businesses of all sizes, including:

Entrepreneurs

Startups

Small and Medium-Sized Enterprises (SMEs)

International Trading Companies

Multinational Corporations

Global Eastern Investment works with clients worldwide, including businesses and investors from:

• United States
• Canada
• United Kingdom
• Australia
• Germany
• France
• Singapore
• United Arab Emirates
• Saudi Arabia
• India
• South Africa
• and many other international markets.

Yes.Global Eastern Investment assists foreign investors throughout the entire market-entry process, from company registration and compliance planning to hiring, licensing, taxation, and operational setup.

Yes.Global Eastern Investment provides support for:

• Work Permit Applications
• Residence Permit Applications
• Visa Renewals
• Work Permit Transfers
• Entrepreneur Visa Solutions
• for foreign business owners and employees.

Yes.Global Eastern Investment helps clients establish Hong Kong companies and provides ongoing support for compliance, accounting, company secretary services, and banking assistance.

Yes.The company offers:

• Bookkeeping
• Tax Filing
• Payroll Services
• Annual Compliance Support
• Tax Advisory Services

Yes.The company assists clients with corporate banking applications and preparation of required documentation for financial institutions.

Yes.Global Eastern Investment assists overseas buyers with:

• Supplier Search
• Factory Verification
• Procurement Management
• Quality Inspection
• Supply Chain Coordination
• to help reduce sourcing risks.

Yes.Global Eastern Investment specializes in WFOE formation and provides support throughout the registration process, including company setup, tax registration, compliance, and operational planning.

The company has experience supporting businesses across multiple sectors, including:

• International Trade
• E-commerce
• Technology
• Consulting
• Manufacturing
• Healthcare
• Logistics
• Education

Yes.The company assists with various business licenses and permits depending on industry requirements, helping clients remain compliant with local regulations.

Support continues after incorporation and may include:

• Accounting
• Tax Filing
• Payroll Services
• Compliance Management
• Work Permit Renewals
• Business Expansion Support

Yes.Every business has different objectives, industries, and operational requirements. Global Eastern Investment develops tailored solutions based on the client’s investment goals and business model.

Yes.The company evaluates factors such as:

• Industry policies
• Government incentives
• Talent availability
• Supply chain resources
• Operational costs

to help investors select the most suitable location for their business.

Global Eastern Investment combines company formation, accounting, immigration support, compliance management, and sourcing services into a single integrated solution.

This approach simplifies market entry and helps clients reduce coordination costs across multiple service providers.

You can contact Global Eastern Investment to discuss your business objectives, investment plans, or market-entry strategy. The team will assess your needs and recommend the most suitable solution for your business expansion in China or Hong Kong.