The first question almost every foreign founder asks is how to set up a legal entity in China. The short answer is that there are three common routes: a Wholly Foreign-Owned Enterprise (WFOE), an Equity or Cooperative Joint Venture (EJV/CJV), and a Representative Office (RO). Each has different capital requirements, scopes of lawful activity and time to open. For most foreign small and medium enterprises, a WFOE is the default, because it gives full control, can issue invoices, and can hire staff directly.
The registration itself is now electronic and largely unified across Sichuan. You prepare a company name, registered address, business scope articles, shareholders and legal representative details, and capital commitment schedule. The Market Regulation Administration reviews the name and issues a unified social credit code, which doubles as your business licence. Then you carve seals, open a basic bank account, register with tax and social insurance, and apply for any industry-specific licences.
Three entity types at a glance
- WFOE (外商独资企业): 100% foreign-owned, can trade, invoice and hire. Suitable for most operating companies. Capital is subscribed, not paid-in upfront, but should be realistic for your scope.
- Equity Joint Venture (合资企业): foreign and Chinese partners hold shares. Required or recommended in restricted sectors; governance is more complex.
- Representative Office (代表处): a non-profit liaison office. Cannot sign contracts or issue invoices. Cheapest to set up but limited to market research and liaison only.
Practical Information
- Address: Chengdu Administration for Market Regulation and the one-stop service hall in each district (Hi-Tech, Tianfu, Wuhou, Jinjiang).
- Transport: Metro Line 1 to Jinianqiao or Line 2 to Chunxi Road for central offices; the Hi-Tech service hall is near Financial City North.
- Opening Hours: 09:00-17:00 weekdays; online 24/7.
- Cost: no government fee for standard registration; agency and legal fees vary widely and depend on entity type and industry licensing. Budget a few thousand to tens of thousands of RMB depending on complexity.
- Tips: prepare five Chinese company names in order of preference; the first three are often already taken. Reserve a registered address early, because the address must be on file before name approval.
For foreign business visitors
Do not attempt the full process alone. A licensed local agent or a small Chinese law firm that focuses on foreign-invested enterprises will save weeks. Bring your passport, a notarised and apostilled certificate of good standing from your home country, a signed articles of association in Chinese, and proof of registered address. Bank account opening is now the bottleneck, not registration: schedule the bank meeting before you leave Chengdu. All numbers and timeframes above are indicative; follow the latest official announcements from the Chengdu Administration for Market Regulation for current rules.
Common pitfalls to avoid
First, do not understate registered capital. The subscribed capital must match your business scope and planned payroll; a WFOE that declares a tiny capital then tries to hire dozens of staff will attract questions. Second, do not use a virtual registered address shared by thousands of companies. Banks now reject such addresses on real-site verification, and tax will flag you. Third, do not delay seal carving and tax registration: you need both before you can invoice. Fourth, do not assume that a representative office can sign commercial contracts; it cannot, and doing so is a common and costly mistake. Finally, do not forget annual reporting. Every WFOE must file an annual report to the Market Regulation Administration and a separate foreign-investment report; missing one triggers an abnormal-business list that is painful to remove. A reputable agent handles all of this for a small annual fee and is worth every yuan during the first year.
