Registering a company in China is the first step for many entrepreneurs embarking on their business journey. With continuously optimized policies, the company registration process in 2025 has become more convenient, though it still involves multiple steps and considerations.
In China, common company types include the following, each suited to different business needs:
Limited Liability Company (LLC): Shareholders have limited liability, and the registration threshold is low. Under the 2025 new regulations, the special restriction on “one-person LLCs” has been lifted. Now, one individual can establish multiple one-person companies, further lowering the barrier to entrepreneurship!
Joint Stock Limited Company: Suitable for large enterprises or companies planning to go public. The minimum registered capital is RMB 5 million, with 2–200 shareholders.
Sole Proprietorship: Owned by a single natural person who bears unlimited liability. Ideal for individual operators.
Partnership: Divided into general partnerships and limited partnerships, commonly used by professional service firms or startup teams.
Wholly Foreign-Owned Enterprise (WFOE): Designed for foreign investors to establish independent legal entities in China.
Choosing the right company type directly impacts taxation, legal liability, and future development. It is advisable to align the decision with your business model.
Determine and Approve the Company Name
The company name must comply with regulations, typically structured as “Region + Brand Name + Industry + Organizational Form.”
Prepare Registration Materials
Required documents include identification of the legal representative and shareholders, proof of registered address, registered capital, and business scope. Foreign-invested enterprises must additionally provide notarized and authenticated overseas investment documents.
Submit Business Formation Application
Submit materials online or offline to the market supervision authority. Upon approval, collect the business license and company seals.
Open a Bank Account
After obtaining the business license and seals, open a corporate account at a bank.
Tax Registration
File for tax registration on the electronic tax platform, determine tax categories, and apply for invoices.
Register for Social Insurance and Housing Fund
Companies must register for social insurance and housing provident funds for employees to ensure compliance.
Note: Under the 2025 new regulations, registered capital must be fully paid within 5 years! Avoid setting excessively high registered capital, as it may lead to high stamp duty and financial pressure during the payment phase.
The year 2025 brings significant changes to company formation in China:
Registered Capital Must Be Fully Paid Within 5 Years
The new Company Law stipulates that for companies registered after January 1, 2025, shareholders must fully pay their subscribed capital within 5 years. For example, a company established in June 2025 must complete payment by June 2030. Failure to comply may result in fines ranging from RMB 50,000 to 200,000!
Extended Tax Incentives for Small and Micro Enterprises
In 2025, small and micro enterprises continue to enjoy numerous benefits:
– A 5% corporate income tax rate on annual profits below RMB 3 million.
– VAT exemption for small-scale taxpayers with monthly sales below RMB 100,000.
– Additional policies, such as halved resource tax and urban construction tax, are extended until the end of 2027.
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Tannet Group Limited is in its sixth five-year development plan stage, and setting the upcoming two five-year plans. Tannet has been always devoted to providing with business solutions for investors all across the world. Should you have further inquiry, please feel free to contact Tannet at 86-755-82143181, email to anitayao@citilinkia.com, visit our website https://tannet-group.net/.
