Establishing Business

Special Administrative Measures for the Access of Foreign Investment (Negative List) and Catalogue of Industries for Encouraging Foreign Investment

Hong Kong enterprises investing in the Mainland should make reference to the Special Administrative Measures for the Access of Foreign Investment (Negative List) and Catalogue of Industries for Encouraging Foreign Investment promulgated by the National Development and Reform Commission (NDRC) and Ministry of Commerce (MOC) to determine whether the proposed form of investment is classified as "prohibited", or whether special administrative measures apply. For investment outside the areas specified in the negative list, Hong Kong enterprises enjoy the same access conditions as the domestic enterprises.

For investing in the China (Shanghai) Pilot Free Trade Zone (FTZ) (including Lin-gang Special Area), China (Zhejiang) Pilot FTZ, China (Shandong) Pilot FTZ, China (Jiangsu) Pilot FTZ, and China (Anhui) Pilot FTZ please refer to the Circular on the Special Administrative Measures (the Negative List) on Foreign Investment Access to the FTZs and the framework plans for FTZ and related opening measures. For details, please refer to the websites of NDRC, MOC and the FTZs:

https://en.ndrc.gov.cn/
http://english.mofcom.gov.cn/
https://www.pudong.gov.cn/china-shftz/
https://www.lingang.gov.cn/html/website/lg/index.html
http://china-zsftz.zhoushan.gov.cn/
http://swt.jiangsu.gov.cn/col/col79303/index.html
http://commerce.shandong.gov.cn/ftz/
http://english.ah.gov.cn/

Preferential Treatments for Hong Kong Investors in the Mainland

The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) is the first free trade agreement concluded by the Mainland and Hong Kong. It covers trade in goods, trade in services, investment and economic and technical cooperation. Eligible Hong Kong enterprises are able to enjoy preferential access to the Mainland market.

For details, please refer to the website of the Hong Kong Trade and Industry Department (TID):
https://www.tid.gov.hk/english/cepa/index.html

Workflow for Establishing Business in the Mainland

• First Step: Pre-approval of Company Name

  Before applying for registration of the business, pre-approval should be obtained for registration of the company name. Please refer to the respective links below:
  • Shanghai - Applicants can submit the company name to the market supervision department for approval when applying for registration.
    http://fw.scjgj.sh.gov.cn/nameqry/toCheckNameIndex.action
  • Zhejiang Province - Application can be done online (through the administrative service website of Zhejiang Province) or at the municipal administrative service centers
    https://www.zjzwfw.gov.cn/zjservice/item/sjdh/detail.do?eventType=2&id=97751615263473665&webId=1
  • Jiangsu Province -
    https://ydzt.jszwfw.gov.cn/api-gateway/jpaas-jsearch-web-server/search?serviceId=7a56d61aa8cc43b4a1b0f3e293026596&websiteid=320000000000000&cateid=8c28800b632d4589ada07c8200253190&q=%E4%BC%81%E4%B8%9A%E5%90%8D%E7%A7%B0
  • Anhui Province -
    https://www.ahzwfw.gov.cn/bog-bsdt/static/regionalOffice.html
  • Shandong Province -
    http://amr.shandong.gov.cn/col/col76474/index.html

• Second Step: Application for Approval

  Afterwards, approval should be obtained from the Mainland authorities responsible for foreign investments.
  • Shanghai -
    http://english.shanghai.gov.cn/nw46905/index.html
  • Zhejiang Province - Application can be done online (through the administrative service website of Zhejiang Province) or at the municipal administrative service centers
    https://www.zjzwfw.gov.cn/zjservice/item/detail/index.do?impleCode=ff8080815d551320015d58db864100392331620000000&webId=1
  • Jiangsu Province -
    http://www.jszwfw.gov.cn/jszwfw/bscx/itemlist/fr_index.do?webId=1&themid=B201&deptid=#fw_jump
  • Anhui Province -
    http://tzxm.ahzwfw.gov.cn/tzxmspweb/tzxmweb/pages/portal/main_page/work_page.jsp
  • Shandong Province -
    http://zwfw.sd.gov.cn/sdzw/dept/items/dept_index.do?orgcode=SD370000SW

• Third Step: Business Registration

  The next step is to apply to the relevant local administration for industry and commerce for business registration, in accordance with the type of investment as set out below.
  For details, please refer to the Chinese Version.
  1. Wholly Foreign-Owned Enterprise
     
     • Shanghai -
       http://zwdt.sh.gov.cn/govPortals/bsfw/findBsfw.do?_organName_=&_organCode_=&_organType_=&_itemId=SH00SH310100717002&_itemType=%E5%AE%A1%E6%89%B9&_stSubitemId=0c72a93b-473b-4747-bc16-d38ecfd25f00
     • Zhejiang Province - Application can be done online (through the administrative service website of Zhejiang Province ) or at the municipal administrative service centers
       http://www.zjzwfw.gov.cn/zjservice/item/detail/index.do?localInnerCode=b768fd25-bb16-41a0-bc6b-f01a396e862e&webId=1&eventType=2
     • Jiangsu Province -
       https://ydzt.jszwfw.gov.cn/api-gateway/jpaas-jsearch-web-server/search?serviceId=7a56d61aa8cc43b4a1b0f3e293026596&websiteid=320000000000000&cateid=8c28800b632d4589ada07c8200253190&q=%E5%A4%96%E5%95%86%E6%8A%95%E8%B5%84%E5%90%88%E4%BC%99
     • Anhui Province -
       https://www.ahzwfw.gov.cn/bog-bsdt/static/workProcess/components/servicesList.html?subjecttype=C&parentItemtypeName=%u4F01%u4E1A%u5F00%u529E&itemtypeName=%u8BBE%u7ACB%u767B%u8BB0&itemtypeType=GBDFFRQYKB&itemtypeCode=10
     • Shandong Province -
       http://www.shandong.gov.cn/api-gateway/jpaas-jiq-web-sdywtb/front/item/fr_index
  2. Individually Owned Stores
     Under CEPA, Hong Kong permanent residents with Chinese citizenship may set up individually owned stores in the Mainland without being subject to the approval procedures applicable to foreign investments save for some conditions. For details, please refer to the websites of the Hong Kong TID and relevant Mainland authorities.
     • TID -
       http://www.tid.gov.hk/english/cepa/tradeservices/ownedstores.html
     • Shanghai -
       http://zwdt.sh.gov.cn/govPortals/bsfw/item/bd6ae1ec-a458-43a2-b910-121b8615497e
     • Zhejiang Province - Application can be done online (through the administrative service website of Zhejiang Province) or at the municipal administrative service centers
       https://www.zjzwfw.gov.cn/zjservice/item/sjdh/detail.do?regionId=330000&eventType=2&id=97751615263473665&webId=1&sy=
     • Jiangsu Province -
       https://ydzt.jszwfw.gov.cn/api-gateway/jpaas-jsearch-web-server/search?serviceId=7a56d61aa8cc43b4a1b0f3e293026596&websiteid=320000000000000&cateid=8c28800b632d4589ada07c8200253190&q=%E4%B8%AA%E4%BD%93%E5%B7%A5%E5%95%86%E6%88%B7
     • Anhui Province -
       https://www.ahzwfw.gov.cn/bog-search-web/pages/search-results.do?xzqh=340000000000&searchWord=%E4%B8%AA%E4%BD%93%E5%B7%A5%E5%95%86%E6%88%B7
     • Shandong Province -
       http://www.shandong.gov.cn/api-gateway/jpaas-jiq-web-sdywtb/front/item/fr_index
  3. Foreign-Invested Partnership Enterprise
     
     • Shanghai -
       http://zwdt.sh.gov.cn/govPortals/bsfw/item/9e8c5bce-74c2-474d-93f6-02e0d5d68753
     • Zhejiang Province - Application can be done online (through the administrative service website of Zhejiang Province) or at the municipal administrative service centers
       http://www.zjzwfw.gov.cn/zjservice/item/detail/index.do?localInnerCode=7ce76fef-0362-46f0-bd1a-1cf01d184212&webId=1&eventType=2
     • Jiangsu Province -
       https://ydzt.jszwfw.gov.cn/api-gateway/jpaas-jsearch-web-server/search?serviceId=7a56d61aa8cc43b4a1b0f3e293026596&websiteid=320000000000000&cateid=8c28800b632d4589ada07c8200253190&q=%E5%A4%96%E5%95%86%E6%8A%95%E8%B5%84%E5%90%88%E4%BC%99
     • Anhui Province -
       https://www.ahzwfw.gov.cn/bog-bsdt/static/workProcess/components/applicationMaterial.html?ssqdId=2c90d0f06dcafe67016dd79ed61264e3&ssqdCode=7110d841591d4f2a97e781e35443d615&typeSipe=nameSkip
     • Shandong Province -
       http://www.shandong.gov.cn/api-gateway/jpaas-jiq-web-sdywtb/front/item/fr_index
  4. In addition, Hong Kong residents or enterprises investing in the Yangtze River Delta region (including Shanghai Municipality, Jiangsu Province, Anhui Province, and Zhejiang Province) can access the associated government services through the website of "Network of All Services of Yangtze River Delta". For details, please visit: http://csj.sh.gov.cn/govService

 
For further details, please refer to the Chinese Version.

Taxation

For foreign enterprises or individually owned stores, please refer to the relevant websites below.

• Shanghai -
  http://shanghai.chinatax.gov.cn/
• Zhejiang Province -
  http://zhejiang.chinatax.gov.cn/
• Jiangsu Province -
  https://etax.jiangsu.chinatax.gov.cn/
• Anhui Province -
  http://anhui.chinatax.gov.cn/
• Shandong Province -
  http://shandong.chinatax.gov.cn/#

Main Categories of Taxes for Foreign Invested Enterprise

• Value Added Tax (VAT) - Applicable to activities with an value-added element. For details, please refer to the website of the State Administration of Taxation: http://www.chinatax.gov.cn/eng/home.html
• Corporate Income Tax (CIT) - Applicable to Mainland enterprises or organisations (except sole proprietorships and partnerships) deriving income from operation of business. The rates may vary depending on the types of industries and the business.
• Individual Income Tax (IIT) - Applicable to individuals residing in China for one year or more and earning income from the Mainland or abroad; and individuals without residence or residing for less than one year in the Mainland and earning income in the Mainland.
• For details, please visit the following website -
  http://www.chinatax.gov.cn/eng/home.html

 
For further details, please refer to the Chinese Version.

Hiring Employees

Labor law and regulations in the Mainland

The "Labor Contract Law of the People's Republic of China" (Labor Contract Law) is the primary source of labor law in the Mainland. Foreign invested enterprises should hire employees in accordance with the Labor Contract Law.

About Labor Dispatch

There are relevant laws relating to labor dispatch arrangements. For details, please refer to the Chinese Version.

Hiring of Taiwan, Hong Kong, Macao and Foreign Residents

For applications of the required permits, please refer to the links set out below.

• Shanghai -
  https://gaj.sh.gov.cn/shga/wzXxfbGj/getWsbsWgr
• Zhejiang Province -
  http://kjt.zj.gov.cn/art/2018/11/13/art_1228971519_40906410.html
• Jiangsu Province -
  http://gat.jiangsu.gov.cn/art/2018/8/29/art_6361_7799900.html
• Anhui Province -
  https://mp.weixin.qq.com/s/ZxAZ9dbP0bkEDM7vEyrEpg
• Shandong Province -
  http://sd.dzwww.com/sdnews/201808/t20180830_17787058.htm?from=groupmessage

For hiring of foreigners, please refer to the following websites -

• Shanghai -
  http://zwdt.sh.gov.cn/govPortals/bsfw/findBsfw.do?_itemId=SH00SH310100192015&_itemType=%E5%AE%A1%E6%89%B9&_stSubitemId=1c26173b-a509-4e5b-b3fb-870f8d5381a4#work-apply-data
  
  http://zwdt.sh.gov.cn/govPortals/bsfw/item/fab22231-edae-53a1-3d9b-49fb75ffc17f
• Zhejiang Province -
  http://www.zj.gov.cn/art/2013/5/21/art_9811_61.html
• Jiangsu Province -
  http://en.jiangsu.gov.cn/art/2017/5/12/art_54122_6324268.html
  
  http://www.jszwfw.gov.cn/jszwfw/bscx/itemlist/bszn.do?webId=1&iddept_yw_inf=113200000140003784200010600400001&ql_kind=01&iddept_ql_inf=1132000001400037842000106004000
• Anhui Province -
  https://www.ahzwfw.gov.cn/bsdt/workService/public-service-detail.do?code=142bb3d6bedb4a759efd63da798a8eed&version=1
• Shandong Province -
  http://www.sdtb.gov.cn/art/2018/8/21/art_118539_8640394.html

Labor Cost

Annual Minimum Wage

An annual minimum wage is applicable for each municipality and province. Please refer to the below websites of the relevant local authorities on human resources and social security for details.

• Shanghai -
  http://rsj.sh.gov.cn/tgzzlgl_17309/20210628/t0035_1400413.html
• Zhejiang Province -
  http://rlsbt.zj.gov.cn/art/2018/7/3/art_1389547_19038462.html
• Jiangsu Province -
  http://jshrss.jiangsu.gov.cn/art/2021/7/28/art_77279_9953183.html
  
  http://jshrss.jiangsu.gov.cn/art/2021/7/28/art_77261_9953188.html
• Anhui Province -
  http://hrss.ah.gov.cn/index.html
• Shandong Province -
  http://www.shandong.gov.cn/art/2021/9/27/art_107870_114496.html

Social Securities and Housing Provident Fund

Foreign invested enterprise should make applications for social securities and housing provident fund for its staffs within 30 days of their initial employment. Please refer to the websites of the relevant local authorities for details, or call 12333 for enquiries.

Regarding social security for foreign employees, please refer to the following link:
http://www.mohrss.gov.cn/SYrlzyhshbzb/shehuibaozhang/zcwj/SHBZzonghe/201109/t20110926_86914.html

 
For further details, please refer to the Chinese Version.

Intellectual Property

Types of intellectual property in the Mainland include trademark, patent, copyright, and business secrets. There are relevant laws and regulations on protection of intellectual property rights, intellectual property rights infringement and intellectual property rights dispute.

Trade Mark

For applications for trademark registration and related issues, please visit the website of Trademark Office of China National Intellectual Property Administration:
https://sbj.cnipa.gov.cn/sbj/index.html

Patent

For applications for patent and related issues, please visit the website:
https://english.cnipa.gov.cn/

Copyright

For copyright matters, please visit the website:
http://en.ncac.gov.cn/

Business Secrets

For violation of its trade secrets, Hong Kong enterprise may request an administrative remedy from the local administration for industry and commerce or file a lawsuit with the People's Court.

 
For further details, please refer to the Chinese Version.