FAQ
Everything founders ask in the first call
Grouped by the decision you are making right now. If your question is not here, send it — we answer in writing.
- 4Groups
- 20 minFirst call
- 1 dayReply time
01
Choosing a structure
WFOE or representative office?
If you will invoice a Chinese client, collect payment, or hire staff directly, you need a WFOE. An RO cannot invoice, cannot receive RMB revenue and must hire staff through a dispatch agency. It only makes sense for pure market research.
Do I need a Chinese partner?
Only in the sectors on the negative list. For consulting, software, trading and most services, 100% foreign ownership is allowed and is the norm.
Can I register before I have an office?
No. The address is part of the application and it must be a real commercial premises with a lease and a property certificate. Our offices solve this on day one.
How much capital should I put in?
Enough to look credible to the bank and to fund the first year. There is no legal minimum in most sectors, but RMB 100,000–500,000 is a normal range for a service company that will sponsor foreign staff.
Can you help outside Shanghai?
Yes, through partner desks in Beijing, Guangzhou, Shenzhen, Hangzhou, Ningbo, Chengdu, Changsha, Nanjing, Suzhou, Chongqing and Hong Kong, China. Shanghai is our own office and our own filing team; elsewhere you get a named person and their own quote, and we take no commission on the introduction.
02
Visas and people
Can I work on a tourist visa?
No. Working on a tourist or business visa is illegal employment, and it is checked. The fine falls on the company as well as the individual.
Does my degree have to be in the same field?
It should relate to the position, or your work experience should. A marketing degree for a marketing manager is fine; a marketing degree for a software engineer invites a refusal.
Can I hire Chinese staff immediately?
Yes, once the company has a licence and a social insurance account. Payroll, individual income tax and social insurance all start from the first employee.
What is the minimum salary for a foreign employee?
There is no single national figure. Shanghai practice expects at least the local average wage, and the category test looks at the salary against the position. We advise on the figure before you sign a contract.
03
Trading and tax
Do I need a special licence to export?
No — the operator filing was abolished at the end of 2022. You need the trade scope, the customs record, the e-port card and the FX listing.
How much VAT can I recover?
Up to 13% of the purchase value, depending on the HS code. Not all goods qualify at 13%; some are 9%, some are exempt.
Can I offset the refund against my corporate income tax?
No. The refund is VAT, and it is not taxable income. Corporate income tax is calculated on your profit separately.
What happens if my supplier cannot issue a VAT invoice?
Then there is no refund. This is the single biggest reason small exporters recover nothing — the price looked better without the invoice.
04
Living and staying
Can I get permanent residence?
It exists, and it is difficult: usually after four to six years of continuous residence with a high salary and tax record, or through a significant investment. Plan it as a long game.
Can my family join me?
Spouse and children under 18 can hold S1 visas and residence permits for family reunion, tied to the length of your permit.
Do I pay tax on worldwide income?
If you are a tax resident (183 days or more in a calendar year), yes in principle. There are treaty reliefs and expatriate allowances — this needs proper advice, not a website.
What if I want to close the company?
Deregistration takes 2–4 months if the company is clean, longer with unpaid tax or unresolved imports. Do the annual filings every year and closing stays cheap.
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