Set up and run your company in mainland China

01 · ChinaMNC

Why China for Polish companies

China is one of the world's largest consumer and industrial markets, with deep supply chains and a broad base of manufacturers, distributors and technology partners. For Polish companies, the opportunity is often not simply selling into China, but building a local presence that supports sourcing, quality control, partnerships and customer service.

A local entity can help you contract with Chinese suppliers, hire staff, invoice customers in renminbi and manage operations on the ground. It also signals commitment to partners and can make it easier to protect brands, manage compliance and respond to market changes.

At the same time, China is not a single market. Rules, customer expectations and competitive conditions vary by region and sector. Founders should validate demand, understand licensing requirements for their activity and budget for the time and cost of setting up properly. A clear commercial rationale, realistic operating plan and reliable local advisers matter more than speed.

02 · ChinaMNC

WFOE, joint venture or representative office

The three structures most often considered by foreign investors are the wholly foreign-owned enterprise (WFOE), the joint venture (JV) and the representative office (RO). Each fits a different purpose.

• WFOE: A limited liability company owned by foreign investors. It can usually conduct permitted business activities, hire employees and invoice customers. It requires registered capital, a registered address and a business scope that fits the planned activity.
• Joint venture: A company shared with one or more Chinese partners. A JV can bring local market access, licences or relationships, but requires careful negotiation of governance, capital contributions, profit sharing and exit terms.
• Representative office: A liaison office that cannot normally earn revenue directly. It suits market research, supplier coordination and liaison, but not direct sales or invoicing.

Choice depends on your activity, sector restrictions, control preferences and long-term plan. Check the current foreign investment rules for your industry before deciding.

03 · ChinaMNC

The five-step registration process

Registration steps vary by city and sector, but most projects follow a similar path.

• 1. Confirm structure and feasibility: Define your business activity, check foreign investment access, choose a city and decide between WFOE, JV or RO. Prepare a commercial plan and budget.
• 2. Reserve the company name: Submit proposed Chinese names for approval through the local market regulation system. Names must follow local rules and avoid restricted terms.
• 3. Prepare incorporation documents: Articles of association, investor documents, proof of address, legal representative details and other filings. Foreign documents often need notarisation, apostille or consular legalisation and Chinese translation.
• 4. Submit and obtain the business licence: File with the local market regulation authority. After approval, arrange company seals and related registrations.
• 5. Complete post-licence steps: Open a bank account, register for tax, handle foreign exchange and customs where relevant, and set up accounting and payroll.

Plan for document preparation and authority review to take time. Avoid relying on promised fixed timelines.

04 · ChinaMNC

Documents to prepare

Document requirements depend on the entity type, city and investor profile, but Polish investors should generally prepare the following.

• Passport copies of directors, legal representative and authorised signatories.
• Certificate of incorporation or equivalent registration documents for corporate investors.
• Notarised or apostilled investor documents, with Chinese translations where required.
• Proof of registered address, such as a lease or property document acceptable to the local authority.
• Proposed Chinese company names and alternative options.
• Articles of association and shareholder resolutions.
• Capital contribution and business scope details.
• Legal representative appointment documents and contact details.

Requirements can change and differ by locality. Ask your local adviser for a current checklist before collecting documents, and keep originals and translations consistent. Errors in names, addresses or capital figures often cause delays.

05 · ChinaMNC

Registered address, business scope and compliance

A registered address is a legal requirement. It must be a premises accepted by the local registration authority for your activity. Many companies use a serviced office or incubator address, but confirm that the address can support your business scope and any required site inspection.

Business scope defines the activities your company may conduct. Write it carefully: too narrow and you may need to amend it later; too broad and authorities may ask for supporting documents or licences. Some activities require pre-approval or special permits, so check before signing a lease or committing to a location.

After registration, keep the company compliant: file annual reports, maintain accounting records, update changes in directors or address, and follow invoicing and foreign exchange rules. A local accountant or corporate services provider can help you maintain filings and avoid penalties.

06 · ChinaMNC

Banking, tax and visas

Opening a corporate bank account usually requires the business licence, company seals, identity documents and sometimes proof of business activity. Banks apply their own due diligence, so be ready to explain your business model, expected transactions and source of funds. Processing can take time.

Tax registration is required after incorporation. The main taxes to understand include corporate income tax, value-added tax and stamp duty, with withholding and payroll obligations depending on your activity. Rates, incentives and filing cycles vary, so obtain advice for your situation.

For foreign staff, work permits and residence permits are typically needed. Eligibility, documentation and processing depend on the role and local rules. Business visas are not a substitute for working in China. Plan visa and payroll arrangements before staff relocate, and allow time for approvals.

07 · ChinaMNC

Common mistakes to avoid

Many difficulties are avoidable with early planning.

• Choosing the wrong entity: A representative office cannot usually invoice customers, and a WFOE may not fit a restricted sector. Match structure to activity.
• Underestimating documents: Missing apostilles, inconsistent translations or outdated investor documents cause delays.
• Ignoring business scope: Activities outside the approved scope can create compliance risk. Include realistic activities and obtain required licences.
• Assuming banking is simple: Bank due diligence can be detailed. Prepare clear explanations of your business and transactions.
• Neglecting post-registration compliance: Tax filings, annual reports and accounting obligations continue after setup.
• Relying on verbal promises: Put partner arrangements, leases and service terms in writing and review them with local counsel.

Build a realistic budget and seek local advice before committing capital or signing long-term contracts.