Set up and run your company in mainland China

01 · ChinaMNC

Why mainland China for Kiribati founders

China is one of the world's largest consumer and manufacturing markets, and it sits at the centre of many regional supply chains. For a founder in Kiribati, a mainland presence can put you closer to suppliers, factories, logistics partners and buyers rather than working entirely through intermediaries at a distance.

A locally registered company also makes it easier to hire staff in China, sign contracts with Chinese counterparties, open a corporate bank account and issue invoices in the local system. Many Chinese partners prefer to deal with an entity that is registered onshore, particularly for longer-term supply or distribution arrangements.

There are also practical trade links. Kiribati businesses active in fishing, marine products, shipping services and general trade may find Chinese processing, cold-chain and equipment suppliers relevant. Founders in services, e-commerce or light manufacturing can use a China entity to test the market with a real operating base.

China is not a low-effort market. Language, local compliance and competition are real. The case for registering is strongest when you have a clear commercial reason — a supplier relationship, a customer base, a hiring plan or a distribution agreement — rather than general interest.

02 · ChinaMNC

WFOE, joint venture or representative office

The three structures most often considered by foreign founders are the wholly foreign-owned enterprise (WFOE), the joint venture (JV) and the representative office (RO).

• WFOE: a limited liability company owned entirely by foreign investors. It can carry out permitted business activities, hire staff, invoice customers and remit profits. It is the most common choice for founders who want full control and a real operating business. Capital, scope and sector rules apply.
• Joint venture: a company shared with a Chinese or other partner. A JV can open doors to local networks, licences or land, but it brings shared governance, agreed profit splits and the need for a solid shareholders' agreement and exit terms.
• Representative office: a liaison office that cannot earn revenue directly. It suits market research and coordination, not trading or service delivery.

Your sector matters. Some activities are restricted or require specific approvals, and negative lists set out where foreign investment is limited or prohibited. Check your planned business scope against current rules before choosing a structure, and take advice on capital and governance before signing anything.

03 · ChinaMNC

The five-step registration process

Registration in mainland China generally follows a sequence. Exact procedures and durations differ by city and by sector, so treat this as a planning outline rather than a fixed timetable.

• Step 1 — Define the business. Confirm what the company will actually do, your planned business scope, your ownership structure and your registered capital. Decide the city based on your customers, suppliers and hiring plans.
• Step 2 — Name and scope check. Apply for company name pre-approval through the local market regulation system and check that your intended activities can be listed. Some scopes need pre-approval from sector regulators.
• Step 3 — Prepare and submit documents. Assemble the incorporation file: investor documents, constitutional documents, proof of address, appointment of legal representative and directors, and notarised or legalised papers where required.
• Step 4 — Obtain the licence and registrations. Once approved, collect the business licence, then arrange company seals, tax registration, and social insurance and banking setup as applicable.
• Step 5 — Open accounts and go live. Complete bank account opening, set up bookkeeping and invoicing, and confirm any sector licence before trading. Plan for follow-up filings after launch.

04 · ChinaMNC

Documents to prepare

Document requirements vary by city and by investor type, and Chinese authorities may ask for originals, translations or additional evidence. Build your file early and keep copies consistent across every submission.

• Investor identity and corporate documents: passport copies for individual shareholders, or certificate of incorporation, constitutional documents and shareholder records for corporate investors.
• Notarisation and legalisation: foreign documents often need notarisation and, where applicable, legalisation or an apostille, plus Chinese translation. Confirm the current route with your adviser.
• Company name and scope: proposed names, a clear description of activities and the intended business scope.
• Registered address: a lease or address-use document for the registered office, meeting local requirements.
• Governance: appointment of the legal representative, directors, supervisor and, where relevant, a company secretary arrangement.
• Capital and funding: evidence and statements relating to registered capital and how it will be contributed.
• Applications: the incorporation forms and any sector-specific approvals or licences.

Where a Kiribati company is an investor, expect extra checks on its ownership and good standing. Keep names, addresses and dates identical across all documents to avoid delays.

05 · ChinaMNC

Registered address and business scope

Your registered address is the official location of the company. It must be a real, valid address accepted by the local registration authority, and it is where official notices are sent. Many founders use a serviced office or an incubator address approved for registration; others lease space tied to their actual operations.

The address also affects tax jurisdiction and may affect which incentives or local requirements apply. Check that the landlord can provide the documents the authority requires, and that the address is permitted for your type of activity. If you later move, the change must be registered.

Business scope defines what the company is permitted to do. Write it deliberately: broad enough to cover your near-term plans, specific enough to pass review, and consistent with your licences and contracts. Some activities sit behind a separate permit, and some are restricted for foreign investors. Adding activities later is usually possible but takes time, so map your first two years of intended operations before you file.

Keep the scope aligned with your bank's expectations. Banks review what the company says it does when opening accounts and processing payments, and mismatches can trigger questions.

06 · ChinaMNC

Banking, tax and visas

Banking. Open a corporate RMB account after incorporation, and consider a foreign currency account if you will receive or send cross-border payments. Banks apply their own onboarding and ongoing checks, so prepare ownership information, business rationale, contracts and expected transaction flows. Requirements differ between banks and branches.

Tax. Register with the tax authority and confirm your taxpayer status, invoicing arrangements and filing calendar. China has several tax categories, and rates and rules depend on your activities, location and any incentives available. Cross-border payments may involve withholding and reporting obligations. Engage a local accountant from the start rather than reconstructing records later.

Visas and work permits. Foreign staff generally need a work permit and a residence permit to work in China. Founders often begin with a business visa for meetings and setup, then apply for work authorisation once the entity and role are established. Immigration rules change, so check current requirements with the local exit-entry administration or a qualified adviser before travelling.

Plan banking and immigration alongside registration. Both can become the practical bottleneck after the licence is issued.

07 · ChinaMNC

Common mistakes to avoid

Most problems at this stage are avoidable with a little preparation.

• Choosing a city for convenience. Your registered location should follow your customers, suppliers and talent. A cheaper address in a city far from your real operations can complicate banking, hiring and oversight.
• Copying a business scope. Generic or mismatched scopes lead to rejections, licence gaps and awkward bank conversations. Write yours to fit your actual plans.
• Inconsistent documents. Different spellings, addresses or dates across the investor file are a frequent cause of delay. Standardise before submitting.
• Underestimating capital and funding. Registered capital has implications for contribution and liability. Set it with advice, not by guessing low.
• Ignoring post-registration duties. Bookkeeping, tax filings, annual reporting and social insurance obligations continue after launch. Missing them creates penalties.
• Treating the visa as automatic. Entity registration does not by itself grant the right to live or work in China. Plan immigration separately.
• Skipping local advice. Rules vary by city and change. A local accountant and legal adviser are worth the cost when your capital is at stake.

Start with clear commercial objectives, then build the legal and compliance structure to match them.