- Award-Winning · 1080+ Clients · 45+ Countries
Start a Business in China — WFOE, 25% CIT, HNTE 15%, R&D 200%, World's 2nd Economy
Chinese company formation involves establishing a WFOE (Wholly Foreign-Owned Enterprise) through SAMR (State Administration for Market Regulation) under the Foreign Investment Law 2020. China is the world’s 2nd largest economy (USD 18T GDP, 1.4 billion consumers) and the global manufacturing superpower. Standard CIT is 25%, but High & New Technology Enterprises (HNTE) pay just 15%, small & thin-profit enterprises pay 5%, and Hainan Free Trade Port offers 15% CIT with 0% capital gains tax. R&D super-deduction at 200% is the world’s most generous. The 2024 Negative List has shrunk to just 29 restricted categories — most sectors are 100% open to foreign ownership. Company seals (chops) are legally binding — 5 types with custody governance implications. The Fapiao invoice system is unique globally. 21 Free Trade Zones provide varied incentives. SBI operates in Shanghai. India-China DTAA provides uniform 10% rates. Despite bilateral complexity, China remains the world’s largest manufacturing market. Comply Globally has helped 1,080+ entrepreneurs across 45+ countries.
- By Dr. Anil Gupta, Global Expansion Advisor
- Updated April 2026
- 16 min read
500+
Companies launched
45+
Countries served
4.9
Client rating
+12 today
Founders onboarded
Incorporated in 7 days
Average turnaround time
25%
CIT (HNTE 15%)
200%
R&D Deduction!
$18T
GDP (#2 Global)
1.4B
Consumers
21
Free Trade Zones
Our Services in China
What We Help You With in China
Leverage our expertise for company formation, EXIM, IOR/EOR, visas,
banking, and ongoing compliance in China all through a single point of contact.
Most Popular
Company Formation
Register your China company through the State Administration for Market Regulation (SAMR) and related authorities. We assist with WFOE (Wholly Foreign-Owned Enterprise), Joint Venture (JV), and Representative Office setup across major business hubs like Shanghai, Shenzhen, Guangzhou, and Beijing. Our team handles company name approval, Articles of Association drafting, registered address support, business licence registration, tax registration, bank account opening, and post-incorporation compliance — remotely from India. Minimum registered capital depends on industry and city requirements. 100% foreign ownership is permitted in many sectors through WFOE structures. Average Comply Globally turnaround: 4–8 weeks depending on licence category and jurisdiction. Starting from ₹1,95,000.
Tax & Compliance Advisory
Navigate China’s Corporate Income Tax (CIT), Value Added Tax (VAT), transfer pricing, annual audit requirements, and ongoing bookkeeping obligations with confidence. China’s standard Corporate Income Tax rate is 25%, while High and New Technology Enterprises (HNTEs) may qualify for a reduced 15% rate. VAT generally ranges from 6% to 13% depending on industry classification. We help optimise your cross-border structure using the India–China Double Taxation Avoidance Agreement (DTAA), including withholding tax planning on dividends, royalties, and technical service fees. Our experts also assist with SAFE compliance, invoice management (Fapiao), payroll taxation, and local accounting standards. Source: State Taxation Administration (STA) China.
Most Popular
FEMA & RBI Compliance
We manage BOTH sides simultaneously — China incorporation and Indian FEMA compliance. Our team assists Indian founders with ODI filings through their AD bank, Annual Performance Reports (APR), RBI Foreign Liabilities and Assets (FLA) returns, and foreign remittance documentation. We also support Foreign Tax Credit (FTC) claims under Section 90 and ensure proper reporting of overseas investments under RBI regulations. This dual-country execution capability remains one of our biggest differentiators for Indian businesses expanding into China.
Visas & Immigration
We assist with China business visas, work permits, residence permits, and investor-related immigration processes. Our services cover Z Visas (employment), M Visas (business visits), work permit applications, residence registration, renewals, and employer compliance documentation. China work permits are generally classified into Categories A, B, and C based on qualifications, salary, and experience. We coordinate directly with local authorities and licensed partners to streamline approvals and minimise delays.
EXIM & Logistics
China remains the world’s largest manufacturing and export economy, making it an ideal sourcing and supply-chain hub for Indian companies. We assist with import/export licensing, customs registration, supplier coordination, sourcing support, warehousing, freight forwarding, and IOR/EOR solutions. Our team supports businesses importing from China into India and companies using China as a regional manufacturing or procurement base.
Cross-Border Banking
We support corporate bank account opening with major Chinese and international banks operating in China, including ICBC, Bank of China, China Construction Bank, HSBC, and Standard Chartered. Our team prepares your business documentation, company profile, financial projections, and KYC paperwork required by Chinese banks. Depending on the bank and city, account opening may require video verification or at least one in-person visit by the legal representative.
- 1080+ Clients Served
- 45+ Countries
- 4.7★ Trustpilot
- Avg 4hr Response
- 100% Compliance Record
Why Partner With Comply Globally?
Our 4 Brand Promises — Backed by Results
These are not marketing slogans. They are measurable operational standards tracked
and validated across 1,080+ global client engagements.
Speed of Action
We respond within 4 hours. Our experienced China market-entry specialists coordinate incorporation, compliance, banking, and documentation efficiently across multiple jurisdictions.
Fast-track structures available for selected business activities and free-trade zones.
Accuracy & Competence
Zero compliance failures across 1,080+ engagements. Every filing, application, and compliance submission is reviewed by dedicated India and China specialists before processing.
100% filing accuracy · 4.7★ client satisfaction rating
Ease of Doing Business
One point of contact for everything — China company formation and Indian FEMA compliance managed together without vendor fragmentation.
Single Point of Management · 45+ countries
Cost Competitiveness
Transparent and all-inclusive pricing with zero hidden charges. Our fees are consistently 30–40% lower than traditional consulting and Big 4 advisory firms for comparable execution scope.
China company setup solutions tailored for startups, SMEs, traders, and manufacturers.
“Initially, I assumed their promises were standard marketing language but after working with them, I was genuinely impressed by their speed, professionalism, and understanding of both Indian and Chinese compliance requirements.”
India China Import Business
TAX FRAMEWORk
What Is the Corporate Tax Rate in China?
China’s standard Corporate Income Tax rate is 25%
According to China’s State Taxation Administration (STA), resident enterprises are generally taxed at a flat 25% Corporate Income Tax (CIT) rate on worldwide income. Qualified High and New Technology Enterprises (HNTEs) may enjoy a reduced 15% CIT rate, while certain small and low-profit enterprises can access preferential tax treatment subject to eligibility thresholds. China levies Value Added Tax (VAT) ranging from 6% to 13% depending on the nature of goods and services. Under the India–China DTAA, withholding tax rates on dividends, royalties, and interest can be reduced subject to treaty eligibility and beneficial ownership conditions. China also maintains strict transfer pricing, substance, and foreign exchange reporting requirements under SAFE and STA regulations.
Singapore vs UAE vs Hong Kong vs India — Tax Comparison
| Factor | 🇸🇬Singapore | 🇦🇪UAE | 🇭🇰Hong Kong | 🇮🇳India |
|---|---|---|---|---|
|
CIT Rate
|
17% (eff. 4.25% startups) | 9% | 8.25 / 16.5% | 25.17% |
|
Capital Gains Tax
|
0% | 0% | 0% | 10–20% |
|
Dividend WHT
|
0% (one-tier system) | 0% | 0% | 10% (DDT abolished) |
|
VAT / GST
|
9% | 5% | 0% | 18% (avg GST) |
|
DTAA with India
|
Yes — 10–15% | Yes — 10% | Yes — 5% | N/A |
|
Ease of Doing Business
|
#1 Global | Top 20 | Top 5 | #63 |
|
Startup Exemption
|
0–4.25% for 3 years | Free zone options | 50% relief yr 1–2 | Startup India (limited) |
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Frequently Asked Questions
Starting a Business in China
Yes. Foreign investors can establish a Wholly Foreign-Owned Enterprise (WFOE) in many sectors under China’s Foreign Investment Law. The 2024 Negative List has reduced restrictions significantly, and most industries now permit 100% foreign ownership subject to licensing and regulatory approvals.
- WFOE (Wholly Foreign-Owned Enterprise): Full foreign ownership with operational and invoicing rights.
- Joint Venture (JV): Partnership with a Chinese entity, commonly used in regulated sectors.
- Representative Office (RO): Non-revenue-generating presence used for liaison, sourcing, or market research activities.
The ideal structure depends on your business activity, licensing needs, and long-term China strategy.
China company formation generally takes around 4–8 weeks depending on the city, business scope, industry approvals, and banking timelines. Free Trade Zones (FTZs) may offer faster processing for selected industries.
China’s standard Corporate Income Tax (CIT) rate is 25%. However.
- High & New Technology Enterprises (HNTEs): 15%
- Small and low-profit enterprises: preferential reduced rates
- Hainan Free Trade Port: 15% CIT and potential 0% capital gains tax incentives
China also offers one of the world’s most attractive R&D super-deduction schemes at up to 200%.
A Fapiao is China’s official government-controlled tax invoice system. Businesses must issue and manage Fapiaos for sales transactions, VAT reporting, and expense deductions. Proper Fapiao compliance is critical for tax audits, bookkeeping, and business operations in China.
Yes. Company chops in China are legally binding and often carry the same authority as a signature. Businesses typically maintain multiple chops including company seal, financial seal, invoice seal, and legal representative seal. Proper custody and governance of chops is extremely important for operational control and fraud prevention.
Yes. The India China DTAA helps reduce withholding tax on dividends, royalties, and interest payments, generally to around 10% subject to treaty eligibility and beneficial ownership requirements.
China remains.
- The world’s 2nd largest economy
- The global manufacturing hub
- A massive consumer market with 1.4 billion people
- A key sourcing and supply-chain destination
- Home to 21 Free Trade Zones and advanced industrial ecosystems
For manufacturers, exporters, technology companies, sourcing businesses, and cross-border traders, China continues to offer unmatched scale and infrastructure.
Ready To Expand Your Business Into China?
1,080+ entrepreneurs and companies have expanded globally with Comply Globally.
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