If you want to start a business or set up a Chinese company, you must have many questions before even register a Chinese company. In this article, we will talk about things that you should know before setting up a company in China.

Chinese Company Type

In China, they are four key options to choose by Foreigners they are as follows:

  • WFOE It is a limited liability program that stands for Wholly Foreign-Owned Enterprise. Sometimes it is also called as  This type of program is for starting production by foreign firms in China. But this program will get varied from one place to another.
  • JV CompanyIt is a partnership program that stands for Joint Venture This type of program is created between Foreigners and Chinese investors to share their profits and losses in a business.
  • Sales Office– It is an agreement type of program in China. This method useful when a Foreigner needs to increase the control of the workforce.
  • Representative Office– This is a program in which it doesn’t allow a Foreigner in China to conduct or implement business activities.

How To Set Up a Chinese Company (As A Foreigner)?

Find Office For Chinese Company

Choose a well-populated locality.

As I discussed in my previous article (Best 5 Cities in China for your startup Business), select a location where the Government and Industries are centered.

This will be one of the most important things to be followed while starting a Business.

Setting up the Financial Budget

Planning your Financial Budget perfectly for your business makes you successful. Select a secured bank for applying for a loan. Budget plays a vital role while setting up Large-scale industries.

Whereas in the case of Small-scale industries, no need of getting worried about the Financial Budget because investing capital is not an issue.

But people who are planning to start a Large-scale industry should be concerned.

Be careful while hiring your Chinese staff.

Be concern while hiring your employees into the business. Hiring a certified employee helps us to produce a superior-quality product and as well as increases the growth of the industry.

How To Set Up a Chinese Company (As A Foreigner)?

Work with Chinese Employees

The way you treat your employees is very important.

Yes! Of course, we have to treat our employees in a friendly manner instead of hesitating them. It decides to result in Business Growth for your Chinese company.

Assigning and managing the tasks

Being a Chairperson in a company you must assign tasks to your employees in a hierarchical manner. This procedure is Task Management.

Task Management helps us to track the tasks assigned to the employees. By giving offers and promotions to your employees or workforce encourages them to complete their respective tasks efficiently and effectively.

All set! Now Start your Chinese company in this Business Field

Now, this is the phase where you start doing your business. Be confident about what you are doing. Don’t lose any hope in tough situations.

Produce superior-quality products to the public so that there will be high growth in your profession in less period.

Make sure that your result is meeting (reaching) the user-requirements or not.

How To Set Up a Chinese Company (As A Foreigner)?

What Can You Do Next?

Follow these Important Phases after you set up your Chinese company.

  • Gather User-Requirements– After planning your business, gather requirements from the customer.
  • Analyze gathered requirements– Based on their requirements, analyze the time that you can invest.
  • PlanningPlan your financial budget.
  • Designing– Design a rough sketch of your project.
  • Implementing– Implement your design in real-time.
  • Testing– Test your product before you deploy it into the market.
  • DeployingIn this phase, you will release your product into the market.
  • Maintaining-After deploying your product, you should improve your product if necessary, based on the user’s feedback.


Communication with Public

To interact with the public in China you must know the language used by them. People in China communicate with each other in the Chinese language.

After setting up your industry, we need to communicate with the public through Feedback for business purposes.

You should be able to improve your Chinese company based on the user’s feedback.

In this part, we’ll get both positive and negative feedback, so try to take them positively.

It is the most valuable part of your career that helps us to improve our skills.

How To Set Up a Chinese Company (As A Foreigner)?

Extension of your Chinese Business

And then plan for extending your business in the different localities. Improve your machinery in the industry, and produce the best product (improve production).

Give offers, discounts on your products.

Expanding your Chinese business results to gain more profits. Thanks for reading! I hope this article helped you & we can help you register a Chinese company.

Stay tuned for more. And Have a Nice Day.