China is one of the most dynamic economies in the world. It produces everything from microchips to furniture, and for many Russian companies, the natural step is to operate directly without intermediaries.
Having an office in China gives a company full control over the process – from choosing suppliers to assessing product quality. It allows hiring employees legally and managing HR policies independently. A legally registered structure also allows issuing fapiao – Chinese invoices, which are necessary for settling accounts with corporate clients and partners within the country.
Moreover, a registered company gains the opportunity to participate in tenders and government programs, opening access to large contracts and reducing dependency on intermediaries. This format of presence helps establish a foothold in the market and build transparent, long-term relationships with Chinese counterparts.
Formats of Presence
Before registering a business in China, it’s essential to determine the format of presence – this affects the rights and obligations of the company. Below is a comparison of the main options:
- Used for market testing: Allows for legal employee hiring through a local provider and renting a legal address.
- Revenue cannot be generated, and activities are limited to marketing and market research.
The choice depends on the company’s strategy. If the goal is to enter the market with sales and customers, it’s better to register a full company. If you need to test demand or build initial connections, a virtual office or representative office may suffice.
How to Open Your Own Office
Registering a company in China is a straightforward process when done step by step. It requires attention to detail in documentation and understanding local requirements, but with proper preparation, it can be done without complications.
Important! Mistakes at this stage can result in registration rejection or fines, so it's better to double-check documents with local authorities and consult an expert if necessary.
The main steps are as follows:
- Determine the business format: The structure of the company and the size of the authorized capital depend on the goal (trade, services, or consulting).
- Prepare documents: Register the name with SAMR, draft the company charter in Chinese, and confirm the legal address in a commercial property.
- Complete the registration: After submitting the documents, the company receives a business license within 30-45 days.
- Finalize elements: Register for taxes, open bank accounts, and create a company seal to complete the process.
After these steps, the company can officially operate in China: hire employees, sign contracts, and issue fapiao. This approach allows starting activities legally without excessive bureaucracy.
Requirements for Office Space
The choice of premises impacts not only comfort but also the legality of registration. Chinese authorities strictly inspect legal addresses.
To avoid mistakes, consider the following:
- Rent commercial premises – a residential address will not work.
- The rental agreement must be registered with local authorities.
- In Shanghai and major cities, centralized addresses are allowed if the activity is not related to production.
The average rental cost for a Grade A office in Shanghai is around 210 yuan/m² per month, while in Shenzhen, it is approximately 156 yuan.
These data help estimate the budget and understand where to open an office more cost-effectively.
Taxes and Accounting
The Chinese taxation system is transparent but requires discipline. Foreign companies must understand the key tax rates and rules.
Here are the key figures of the tax system:
- VAT: 6% – services (consulting, IT), 9% – transport, 13% – goods.
- Corporate Income Tax (CIT): 25%.
- Social Security Contributions: Paid for each employee.
- Fapiao: Electronic invoices, without which it’s impossible to legally work with Chinese clients.
Accounting is done by a licensed specialist. Monthly reports are submitted digitally – without this, the company will not be able to pay taxes correctly.
Personnel and Visas
Once the company is registered, you can hire employees. It’s important to comply with Chinese labor laws.
The main rules are:
- Foreigners work under a Z visa.
- Chinese employees are hired directly or through an EOR provider.
- For representative offices, hiring is only possible through accredited agencies.
Compliance with these rules ensures legal operation and simplifies obtaining permits for foreign staff.
Legal and Regulatory Features
Business regulation in China is updated every year. In 2024-2025, important changes affecting office registration came into force. These changes are related to the updating of China’s economic policies and the simplification of procedures for foreign investors.
Key points:
- New Company Law edition – the capital contribution deadline is extended to 5 years.
- Currency control has been relaxed, and advance expense accounts are allowed.
- From 2025, the electronic fapiao system will be mandatory.
- The PIPL law regulates the export of personal data.
Understanding these norms will help avoid mistakes and delays during company registration.
How to Choose a City for Your Office
The choice of region affects taxes, rent costs, and the labor market. Different cities offer different advantages.
The most popular business centers are:
- Shanghai – financial hub, suitable for consulting, IT, and logistics.
- Shenzhen – technology and manufacturing cluster.
- Guangzhou – import-export, trade.
- Hangzhou – e-commerce and IT.
Before choosing a city, consider not only the infrastructure but also the business environment – this will impact the success of your project.
Q&A: Frequently Asked Questions
- Can I open an office in China remotely?
- Yes, through a local representative. Personal presence is required only when opening a bank account.
- How long does registration take?
- Usually 30-45 days, if documents and the address are prepared in advance.
- Do I need a Chinese partner?
- No, foreigners can open a WFOE with 100% foreign capital.
- What taxes are paid?
- Corporate income tax – 25%, VAT – from 6 to 13% depending on the type of activity.
- Can I operate without a physical office?
- Yes, but only in the form of a virtual office – without the right to earn income in China.
Conclusion
Opening your own office in China requires attention to detail and precise calculations. The key is to choose the right form, address, and partners.
Having an office in China is not just a "point of presence." It’s an investment in stability and trust in the largest market in Asia.