01 · ChinaMNC
Why consider He County for a foreign-invested company
He County is a county under Ma'anshan City in eastern Anhui, positioned along the Yangtze River corridor. It is not a first-tier commercial center, but it can suit foreign founders whose business involves agriculture, food processing, light manufacturing, or regional distribution. The county’s location provides road connections toward Ma’anshan, Nanjing, and Hefei, and the Yangtze River supports waterborne logistics in the broader region.
For a foreign founder, the main appeal is cost and proximity: office and industrial space in a county typically costs less than in Nanjing or Shanghai, while larger banking, legal, and international transport services are accessible in nearby cities. He County also forms part of Anhui’s integration into the Yangtze River Delta, which has supported industrial relocation and infrastructure development across the region.
That said, He County is not a major international business hub. English-speaking professional services may be limited, and foreign founders should expect to rely on local advisors or staff for registrations, banking, and tax filings. If your customers or suppliers are in the county or nearby, a local entity can make sense; if your business depends on frequent international travel or a large expatriate community, you may prefer Ma’anshan city proper or Nanjing.
02 · ChinaMNC
Entity options: WFOE, JV, or representative office
Foreign investors in China generally choose among a wholly foreign-owned enterprise (WFOE), a Sino-foreign joint venture (JV), and a representative office (RO). For most foreign founders setting up in He County, the WFOE is the most common structure because it allows full foreign ownership, independent control, and the ability to generate revenue and invoice customers.
A WFOE requires a registered capital commitment, a registered address, and a business scope that fits the approved negative list. It can hire staff, open bank accounts, and conduct permitted business activities. A JV may be considered when a local partner brings land, licenses, distribution, or government relationships, but it introduces shared control and requires careful governance documents.
A representative office is simpler but limited: it cannot directly generate revenue and is typically used for market research or liaison. For manufacturing or trading, an RO is usually unsuitable. The right choice depends on your activity, ownership preferences, and long-term plans. Because sector rules and local practices can change, confirm the permitted scope and structure with the local market regulation authority or a qualified advisor before committing.
03 · ChinaMNC
Five-step registration process
Step 1: Name approval and scope check. Prepare several proposed Chinese company names and a draft business scope. Submit for name pre-approval through the local market regulation system. The scope must align with China’s foreign investment negative list and local registration practice.
Step 2: Prepare and notarize documents. Foreign investor documents usually need notarization and, where required, legalization or apostille. This includes the parent company’s registration certificate, board resolutions, and passport copies for legal representatives. Chinese translations may be required.
Step 3: Submit establishment registration. File the foreign-invested enterprise establishment application with the Ma’anshan or He County market regulation authority. Once approved, you receive the business license, which is the company’s legal birth certificate.
Step 4: Post-license filings. Complete company seal carving, tax registration, foreign exchange registration, and social insurance and housing fund registration as applicable. These steps are often handled in parallel or in sequence depending on local workflows.
Step 5: Bank account and capital contribution. Open a basic RMB account and, if needed, a foreign currency capital account. Inject registered capital according to the company’s articles and applicable foreign exchange rules. Engage a local accountant early to avoid compliance gaps.
04 · ChinaMNC
Documents foreign founders typically need
Document requirements can vary by investor type and business scope, but foreign founders should prepare a core set. For a corporate shareholder, this usually includes the certificate of incorporation, articles of association, board resolution approving the investment, and a power of attorney for the local representative. These documents generally require notarization and legalization or apostille, plus Chinese translation.
For individual shareholders, a passport copy is standard, sometimes with notarization depending on local practice. You will also need proposed Chinese company names, a registered address lease or proof of use, and a draft business scope. The legal representative, supervisor, and executive director appointments require identity documents and appointment letters.
Additional materials may include a bank reference letter, proof of ultimate beneficial ownership, and sector-specific approvals if your activity is restricted. Because requirements can differ between the market regulation, tax, and bank stages, keep both originals and scanned copies organized. Do not assume a document accepted at one stage will be accepted at another. A local agent or lawyer can help confirm the current checklist for He County and Ma’anshan.
05 · ChinaMNC
Registered address and business scope
A Chinese company must have a registered address, which is the official location used for service of process and government correspondence. In He County, foreign founders can use a leased office, a coworking space if available, or an industrial park address, depending on the business activity. The address should be commercially zoned and supported by a lease contract and property ownership certificate. Virtual or purely mailbox addresses may not satisfy local inspection requirements.
Business scope is the formal description of permitted activities. It should be written in standard Chinese regulatory language and match your actual operations. For a trading or consulting WFOE, the scope might cover management consulting, technical services, or wholesale and retail of specified products. For manufacturing, it would include production and sales of named product categories. Some activities require pre-approval or additional licenses, such as food, pharmaceuticals, or hazardous materials.
Keep the scope neither too broad nor too narrow. An overly broad scope can trigger extra scrutiny; an overly narrow one may limit invoicing and future expansion. If you plan to add activities later, you can amend the scope, but that involves another filing. Discuss the wording with your local advisor before submission.
06 · ChinaMNC
Banking, tax, and visa basics
After receiving the business license, the company needs a basic RMB bank account for daily operations. Many foreign founders also open a foreign currency capital account for inbound investment. Bank onboarding can take time and often requires the legal representative or authorized signatory to appear in person. Banks may request business documents, lease agreements, and information on beneficial owners. Requirements vary by bank branch, so compare options in Ma’anshan or Nanjing if local branches have limited foreign exchange experience.
On tax, a new company must complete tax registration and determine its taxpayer status. China’s tax system includes corporate income tax, value-added tax, and other levies depending on activity. Bookkeeping and monthly or quarterly filings are mandatory, even if the company has no revenue yet. Engaging a local accounting firm is common for foreign founders who are not familiar with Chinese reporting systems.
For visas, foreign employees typically need a work permit and a residence permit. The process usually involves a medical check, a criminal background check, and employer sponsorship. The legal representative may also need a suitable visa if residing in China. Immigration rules change, so confirm current requirements with the local science and technology bureau and exit-entry administration.
07 · ChinaMNC
Common mistakes to avoid
One common mistake is treating the business scope as a marketing description. Chinese authorities expect standardized wording, and a mismatch between the scope and actual invoices can cause tax or compliance problems. Another is underestimating document formalities: foreign documents that are not properly notarized, legalized, or translated can delay registration by weeks.
Founders also sometimes choose a registered address without confirming zoning or inspection requirements. A lease that looks acceptable to the landlord may not be accepted by the market regulation authority. Similarly, selecting a bank branch without checking its experience with foreign-invested companies can lead to long onboarding delays.
Another frequent issue is ignoring post-registration compliance. A company must file tax returns, maintain accounting records, and complete annual reporting even if it is dormant. Foreign founders who leave China without arranging local representation may miss deadlines. Finally, do not assume that a registration in He County automatically grants visas or work permits; immigration is a separate process. Plan your timeline with buffer and get advice specific to your situation.