1. Can Foreigners Start a Business in China?

Yes! Foreigners can legally register and operate businesses through structures like:

• Wholly Foreign-Owned Enterprise (WFOE)
• Joint Venture
• Representative Office

Most expats prefer a WFOE for full control.

2. Choosing the Right Business Type

Popular options for foreigners:

• Consulting & education services
• Sourcing, logistics, and trade
• Food & beverage
• E-commerce & digital marketing
• Manufacturing

Make sure your industry is on China’s “encouraged” or “permitted” list.

3. Steps to Register a Business

• Decide on your business scope and name
• Find a physical address for your office
• Apply for business license
• Register for taxes and get your company seal
• Open a business bank account
• Apply for work permits if hiring foreigners

Tip: Use service providers like Ubuntu Consult or others listed on Hafrik for support.

4. Challenges to Expect

• Language barrier (contracts, regulations are in Mandarin)
• Local bureaucracy
• Bank processes can be slow
• Internet restrictions
• Licensing for food, health, or trading industries can be strict

5. Key Business Apps & Tools

• WeChat Business
• Alipay Business Account
• 1688 & Taobao for sourcing
• QCC for company lookups
• Hafrik Business Pages to promote your brand to other foreigners

6. Understanding Taxes & Accounting

• Hire a licensed accountant (monthly filings required)
• Keep proper records
• Common taxes: VAT, income tax, corporate tax
• Most small businesses pay VAT around 3–6%

7. Build Guanxi (关系)

“Guanxi” means connections.

• Build relationships with local suppliers, clients, and community leaders
• Show respect for local customs and business etiquette
• Attend networking events and business expos

Final Advice:

Don’t go in blind. Learn the system, stay legal, and use local knowledge and partners to your advantage. China rewards persistence, respect, and innovation — if you’re ready, Hafrik is here to support you all the way.

Shall we move on to the next one?