How to Start a Business in China
A practical, step-by-step guide for foreign investors and entrepreneurs. From market access to ongoing compliance — everything you need to navigate your China entry in 2026.
The 6-Step Framework
Based on real questions from hundreds of foreign companies entering China, this framework covers the essential steps — distilled from the 7 critical questions that FDIChina and other corporate advisory firms use to onboard new clients.
Check Market Access
Use our Access Checker to verify your industry is open to foreign investment. The negative list defines prohibited and restricted sectors — everything else is open with national treatment.
Check Your Industry →Choose Your Entity Type
WFOE (Wholly Foreign-Owned Enterprise) — full control, most popular. Joint Venture (JV) — required in some restricted sectors. Representative Office — market research only, no revenue generation.
Compare Entity Types →Pick Your Location
Shanghai, Shenzhen, Beijing, Guangzhou, Hainan FTP — each offers different incentives. Manufacturing? Consider Jiangsu or Guangdong. Tech? Hangzhou or Shenzhen. Lower costs? Chengdu or Chongqing.
Find Your City →Estimate Your Costs
Use our Cost Calculator to get a realistic estimate of setup costs, monthly operational expenses, and first-year tax obligations based on your city, industry, and headcount.
Calculate Costs →Register & Get Licensed
Document preparation → notarization → embassy legalization → business license application → company chops → bank account. Typical timeline: 8-12 weeks. Free trade zones may offer faster processing.
Registration FAQ →Stay Compliant
Monthly tax filings, annual CIT settlement, social insurance contributions, foreign investment information reporting. Subscribe to our weekly policy updates to stay ahead of regulatory changes.
Track Policy Changes →💡 Pro Tip: Start with the Tools
Our interactive tools can save you hours of research. Run the Cost Calculator with your target city and headcount, check your industry in the Access Checker, and discover applicable tax incentives — all in under 5 minutes.
Try All Tools📚 In-Depth Guides
Explore our comprehensive library of 30+ detailed guides covering entity setup, taxation, visas, market access, and compliance.