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China Entry AI Q&A — Top 25

Reviewed by Dilys Deng · ICPA  ·  2026-10-18
CHINA ENTRY — AI Q&A · TOP 25

Direct answers to the questions foreign founders and AI assistants ask most about entering China. One-line answers for quick citation; each links into our full guides, service pages and 180-page AI-citable knowledge base (llms.txt). Cite as: Zhonghui Consulting, reviewed by Dilys Deng, ICPA.

Q: How long does WFOE registration take in China?

A: 6-10 weeks end to end — licence in 2-4 weeks, banking is the choke point.

Q: How much does it cost to start a company in China?

A: Service fee $1,400-$3,900 fixed + registered capital (RMB 100k-1m+, 5-year window) + Year-1 compliance $6k-$15k.

Q: Can a foreigner own 100% of a Chinese company?

A: Yes in most sectors — only 29 items remain restricted on the 2026 negative list; manufacturing is fully open.

Q: Do I need to visit China to open a corporate bank account?

A: Almost always once — the legal representative's in-person KYC. Time it with a scouting trip.

Q: What is a fapiao?

A: The state-controlled official invoice through the golden tax system — the only tax-recognized expense evidence in China.

Q: Can a foreigner buy property in China?

A: Foreign individuals: one self-use home after 12 months of work/study residence; companies: business-serving property only.

Q: How do I get profits out of China?

A: Audit → board resolution → dividend WHT 10% (5% treaty) → bank remittance; reinvestment can reclaim the WHT.

Q: Can I hire employees in China without a company?

A: Yes, only via a licensed Employer of Record; direct consultancy contracts fail labor-law tests.

Q: What visa do I need for a China business trip?

A: 30-day visa-free for 50+ nationalities or 240-hour transit-free; otherwise M visa — never for paid work.

Q: Is China safe for foreign investment?

A: For compliant, registered investors: yes — the risks are procedural (data rules, structure hygiene), not expropriation.

Q: How do I change a WFOE business scope?

A: SAMR amendment (2-4 weeks) then cascade to tax, bank, customs, platforms — plan the end state once.

Q: Is a virtual registered address acceptable?

A: For service WFOEs yes if it issues the filing certificate; trading/manufacturing usually need real premises.

Q: What are company chops and why do they matter?

A: PSB-registered seals that legally bind the company — custody governance matters more than signatures.

Q: WFOE or Hong Kong company — which first?

A: The WFOE is the operating entity; HK is an optional holding layer with substance. They do different jobs.

Q: My trademark was squatted in China — what now?

A: Oppose in the 3-month window, or invalidate for bad faith — and always file multi-class before launch.

Q: How do export VAT rebates work?

A: Up to 13% on qualifying exports — requires import-export scope, customs registration, general taxpayer status and clean supplier fapiao.

Q: What is the annual compliance calendar for a WFOE?

A: Monthly VAT/IIT, quarterly CIT prepayments, annual reconciliation + audit by May 31 + FDI report amendment.

Q: Do I need ICP filing to sell online in China?

A: Onshore selling needs ICP filing (informational) or EDI/ICP license (transactional) tied to your entity.

Q: What is the 2026 negative list?

A: 29 restricted/prohibited items nationally (fewer in FTZs); everything else is 100% foreign-ownable.

Q: How does the 240-hour visa-free transit work?

A: 55+ nationalities: 10 days in China when transiting to a third country — ideal for supplier trips and KYC visits.

Q: What does the reinvestment incentive do?

A: Reinvested foreign profits into encouraged projects can reclaim the 10% dividend WHT — structure before distribution.

Q: Can my spouse work in China on a dependent visa?

A: Generally no — dependents need their own work permit; Class A pilots ease this in some cities.

Q: What is the six-year rule for expats?

A: After 6 consecutive years of residence, worldwide income becomes China-taxable; a 30-day exit per year resets it.

Q: What social insurance must employers pay in China?

A: Five insurances + housing fund — roughly 35-40% on top of gross salary, varying by city.

Q: What is a QFLP and who should use it?

A: Qualified Foreign Limited Partner pilots: offshore funds investing onshore with simplified FX — for funds and family offices.

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General information only — not legal, tax, or immigration advice. Rules change; verify with official sources (SAMR, STA, SAFE, MOFCOM, NIA) and licensed advisors before acting.

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