Starting a business in China
Legal Forms of Companies
- Wholly foreign-owned enterprise (WFOE)
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Number of partners: One juridical person or one or more shareholders.
Entity owned 100% by foreign interests that have the same rights as a local company.
Capital (max/min): Minimum varies according to the sector of activity.
Shareholders and liability: Limited to the amount of contributions.
- Equity Joint Venture (EJV)
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Number of partners: Minimum of one Chinese entity and minimum one foreign entity.
Capital (max/min): No minimum capital required, but at least 25% must originate from foreign investors.
Shareholders and liability: Limited to the amount of contributions.
- Co-operative Joint Ventures (CJV)
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Number of partners: Minimum of two partners: one Chinese entity and one foreign entity.
Capital (max/min): No minimum capital required.
Shareholders and liability: Limited to the amount of contributions.
- Foreign Investment Joint Stock Company (JSC)
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Number of partners: Minimum two partners.
Capital (max/min): Minimum capital needed: CNY 5 million if domestic capital, CNY 30 million if foreign capital.
Shareholders and liability: Each shareholder contributes the same amount to the share capital and is linked to the company by its share of the share capital.
- Holding
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Number of partners: Minimum one partner.
Capital (max/min): Minimum capital USD 30 million.
Shareholders and liability: Each shareholder contributes the same amount to the share capital and is linked to the company by its share of the share capital.
Business Setup Procedures
Setting Up a Company |
China |
East Asia & Pacific |
Procedures (number) |
4.0 |
7.3 |
Time (days) |
8.5 |
29.7 |
Source: Doing Business - Latest available data.
- The Competent Organisation
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Ministry of Commerce
- For Further Information
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Doing Business: China, to learn about procedures to start a business in China
Financial Information Directories
Dun & Bradstreet - Worldwide directory with financial information on businesses
Kompass China - Business directory for China
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Latest Update: July 2024