Set up and run your company in mainland China

01 · ChinaMNC

Why consider mainland China from Armenia

For Armenian founders, China is usually interesting for one of three reasons: sourcing and quality control of goods, access to manufacturing and component supply, or selling into a very large consumer and business market. An Armenian trading company can often work with Chinese suppliers through agents, but a locally registered entity gives you a legal presence to sign contracts, hire staff, open bank accounts and handle customs and tax matters directly.

China is not a single uniform market. Costs, registration practice, incentives and available talent differ sharply between cities and provinces. A founder selling consumer goods online faces different requirements from one setting up a sourcing office or a small manufacturing operation. Before choosing a structure, define your commercial activity precisely: what you will sell or buy, to whom, from where, and who will run the entity on the ground.

Armenian companies also benefit from considering China within a wider regional strategy, including trade with other Eurasian markets. Think about whether the Chinese entity is a cost centre, a sales hub, or a procurement base, because that decision shapes the capital, staffing and accounting you will need from day one.

02 · ChinaMNC

WFOE, joint venture or representative office

The three structures most often discussed with Armenian founders are the wholly foreign-owned enterprise (WFOE), the joint venture (JV) and the representative office (RO).

• WFOE: a Chinese limited liability company owned entirely by your Armenian company or by you as a foreign individual. It can carry out the business activities listed in its approved business scope, invoice customers, hire staff and remit profits. It requires registered capital, a registered address and proper accounting.
• Joint venture: a company shared with a Chinese partner. It can be useful where local licences, land, distribution or government relationships matter, but it requires a clear shareholders' agreement, governance rules and exit mechanics. Choose your partner carefully and document everything.
• Representative office: a non-profit liaison office. It may not engage in direct revenue-generating business in most cases, but it can support market research, coordination and quality control. It is simpler in some respects but limited in what it can do.

The right choice depends on whether you need to invoice locally, hold licences, employ staff directly, or simply maintain a presence. In regulated sectors, the permitted structure may be restricted, so check industry rules before deciding.

03 · ChinaMNC

A five-step registration process

Exact steps and order vary by city, but most foreign-invested company registrations follow a similar path.

• Step 1 — Plan and check: confirm the activity, city, business scope and whether your industry is on a restricted or encouraged list. Decide on legal representative, supervisors and capital.
• Step 2 — Reserve the name and prepare documents: submit a proposed Chinese company name, then prepare incorporation documents, including charter, shareholder resolutions and proof of the foreign investor's existence, usually with notarisation and legalisation or apostille as required.
• Step 3 — File for establishment: submit the application to the local market regulation authority and obtain the business licence. Foreign investment information reporting is generally handled in the same phase.
• Step 4 — Post-licence registrations: arrange company seals, tax registration, bank account opening, foreign exchange registration and, where relevant, customs registration.
• Step 5 — Start operating compliantly: set up bookkeeping, invoicing, payroll and statutory reporting, and arrange work permits and residence permits for foreign staff.

Allow realistic time for document legalisation, translation and bank due diligence; these are often the slowest parts.

04 · ChinaMNC

Documents Armenian founders usually need

Requirements differ by city and by authority, but a typical file for an Armenian shareholder includes the following. Confirm the current list with your local adviser before sending originals.

• Investor documents: certificate of incorporation or registration of the Armenian company, statutes, and a registry extract, generally notarised and legalised or apostilled, with Chinese translation where required.
• Identification: passports of directors, legal representative, supervisors and shareholders, plus proof of address where requested.
• Corporate decisions: board or shareholder resolutions approving the investment, appointing the legal representative and authorising signatories.
• Incorporation papers: proposed Chinese company name, registered address lease or proof of premises, articles of association, and the business scope wording.
• Financial and banking: bank reference or proof of funds where requested, and details of the capital contribution plan.

Documents issued in Armenian or other languages usually need certified Chinese translation. Keep several sets of originals and scans, and check validity dates on passports and certificates. Inconsistent names or addresses across documents are a common cause of delay.

05 · ChinaMNC

Registered address, business scope and licences

Every Chinese company needs a registered address, which must generally be a real commercial premises suitable for the registered activity. Some cities allow virtual or shared addresses for certain activities, while others require a lease and site inspection. Before signing a lease, check that the property can be used for company registration and that the landlord can provide the documents the authority expects.

Business scope is the formal list of activities your company may conduct. It should be written to cover what you actually plan to do, now and in the near term, using standard wording. Activities on the negative list for foreign investment, or those needing special permits such as food, logistics, education or financial services, require additional approvals before you can trade.

For an Armenian sourcing or trading company, the scope will typically include wholesale, retail, import and export, and related consulting. If you plan to sell directly to consumers online, check whether e-commerce and platform obligations apply. Keep the scope realistic: overly broad wording can trigger questions, and adding activities later means a change registration.

06 · ChinaMNC

Banking, tax and visas in practice

Opening a corporate bank account in China has become more thorough. Banks typically want to see the business licence, seals, identification of the legal representative and beneficial owners, and evidence of the company's business purpose. Some founders are asked to attend in person; video or remote options depend on the bank and branch. Plan capital contributions and foreign exchange through the proper registered channels.

On tax, the main considerations are corporate income tax, value-added tax and invoicing through the official system, plus monthly or quarterly filings. Small companies often benefit from simplified accounting, but professional bookkeeping is essential from the start. Transfer pricing, withholding and permanent establishment questions arise if your Armenian company and the Chinese entity trade with each other, so keep intercompany agreements and pricing documented.

For staff, foreign employees generally need a work permit and a residence permit; the employer must be properly registered and able to sponsor them. Armenian nationals should check the current visa and entry rules before travel, as these change. Budget for payroll, social insurance obligations where applicable, and local HR support.

07 · ChinaMNC

Common mistakes to avoid

Most problems we see among first-time founders are avoidable with preparation.

• Choosing the city on cost alone: a cheap address in the wrong province can limit licences, talent and logistics. Match location to activity.
• Vague business scope: too narrow blocks your planned activity; too broad invites scrutiny. Write it deliberately.
• Underestimating document formalities: missing notarisation, legalisation, apostille or translation delays everything downstream.
• Ignoring the bank early: speak to banks before incorporation so account opening does not stall operations.
• Treating compliance as optional: late filings and unpaid taxes create penalties and can block visa renewals.
• Skipping intercompany paperwork: if you trade with your Armenian parent, document agreements and pricing.
• Signing a lease before checking registration: not every property qualifies as a registered address.

Get local advice on tax, labour and industry licensing before you commit capital or sign long-term contracts.