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?
