Company formation in China
The entity type, registered capital and business scope you choose now determine your tax position, approval difficulty and exit options later. We set the company up with that in mind.
Four common vehicles compared
| Type | Liability | Tax treatment | Suited to |
|---|---|---|---|
| Limited liability company有限责任公司 | Limited to capital contributed | Enterprise income tax 25% (5%–10% for qualifying small firms), dividends 20% | Most trading, service and cross-border businesses |
| Individual business个体工商户 | Unlimited personal liability | Individual income tax on business income, 5%–35% | Sole traders, small retail, testing a market |
| Partnership合伙企业 | General partners unlimited; limited partners capped | Pass-through to partners | Professional firms, funds, holding platforms |
| Branch分公司 | Parent company liable | Not a separate taxpayer; consolidated at parent level | Existing companies expanding into Guangzhou |
Small-profit and small-scale taxpayer thresholds change annually; the applicable rate is confirmed for each case.
From name to first invoice
Name & structure
Name check, shareholder and capital structure, registered address confirmed as compliant for the intended business.
Registration
Business scope drafted to match actual operations; licence submitted; business licence issued.
Seals & accounts
Official seals carved and recorded; bank account opened; tax and social insurance onboarding.
Go live
Invoice issuance set up, bookkeeping started, first filing calendar agreed.
Documents for a standard formation
- Shareholder identity documents and shareholding proportions
- Three to five proposed company names in order of preference
- Registered address documents (lease or provider agreement)
- Business scope in plain language
- Legal representative and supervisor appointments
- Registered capital figure and contribution timeline
Understand the problem before you commit
Tell us how you trade, where you sell and how the group is held. You get a written list of issues and realistic options — the first conversation is free.