Business Licence and Import and Export Rights in China: Full Steps

You want to buy from several Chinese factories, consolidate the goods and export them in your own company's name, or receive payments and issue official Chinese invoices, but you do not know where to start. The first step is the business licence. The second is activating your import and export rights in China with customs, the bank and the tax bureau. This guide gives you the correct order of steps, the documents you must prepare in your own country, the usual time for each stage, and the mistakes that delay a file by weeks.

Do you actually need a company in China to import from it?

Not always. If you buy from one or two factories and pay in dollars, the supplier is the official exporter and handles customs clearance on the Chinese side, so you do not need a Chinese entity. A company starts to make sense when your trade becomes regular and larger, and you have needs that direct buying cannot meet:

• You buy from 5 or more suppliers and want to consolidate goods in one warehouse and ship them in one container in your name.
• Some suppliers are small and have no export rights, or only sell in yuan with a Chinese tax invoice (fapiao).
• You want to be the exporter of record so you can reclaim VAT on exports, instead of the supplier or export agent keeping it.
• You want to hire a team to follow production and inspect goods, or obtain a work visa and residence through your own company.
• You sell from China directly to customers in other countries, not only to your home market.

If two or more of these apply, read our guide on how to establish an import and export company in China with 100% foreign ownership to compare company structures before you begin.

Business licence or import and export rights: what is the difference?

The business licence (营业执照) is the company's birth certificate. It is issued by the market regulation administration in the city where you register and carries the 18-character Unified Social Credit Code, which is the company's number with the tax bureau, customs and the bank at once. The licence shows the company's Chinese name, legal representative, subscribed capital, registered address and business scope. If you are choosing between cities, compare local incentives, such as those in Shenzhen's Qianhai zone, before deciding where to register.

Import and export rights are not a single document. They are a set of registrations that let your company actually clear customs, collect foreign currency and reclaim tax. Until the end of 2022 a company first had to register as a foreign trade operator with the Ministry of Commerce. That requirement was removed by the amendment to the Foreign Trade Law that took effect on 30 December 2022. Today it is enough for the business scope to include import and export of goods; the company then registers with customs and the related bodies.

The line that must appear in your business scope

Ask for the business scope to include 货物进出口 (import and export of goods) and 技术进出口 (import and export of technology), alongside a description of the products you will trade, such as electronics, building materials or clothing. Without this line customs will not accept your registration, and adding it later means amending the business licence and waiting another 1 to 3 weeks.

Documents to prepare before you start

Most delays happen at this stage, because some documents come from your own country and need international authentication before Chinese authorities will accept them. Prepare the following:

• The shareholder's passport if the shareholder is an individual, with a clear colour copy. Most cities require it to be notarised and legalised for use in China.
• If the shareholder is a company in your country: the commercial register, articles of association and a certificate of directors, notarised and legalised.
• Authentication: China joined the Apostille Convention, which took effect for it on 7 November 2023. If your country is a party, an apostille is enough; if not, legalisation goes through your foreign ministry and then the Chinese embassy or consulate. Check your country's status before you start.
• 3 to 5 proposed Chinese company names in order of preference, because your first choice may be taken.
• A lease for a commercial registered business address with a copy of the property ownership certificate. Understand the difference between a real, a licensed virtual and a fake address before you sign anything.
• Details of the legal representative, the director and the supervisor. The supervisor cannot be the director, and the revised Company Law lets small companies do without a supervisor if all shareholders agree.
• The subscribed capital amount and the proposed business scope.

How much registered capital should you choose?

There is no general minimum capital for a foreign trading company, but the revised Company Law that took effect on 1 July 2024 requires shareholders to pay subscribed capital in full within 5 years of incorporation. Do not write a large figure for appearance. Work out what the company really needs to cover rent, salaries, accounting and its first purchase orders for 6 to 12 months, then choose a figure close to that. Very low capital can raise questions when you apply for a work visa or open a bank account, and very high capital becomes a legal obligation on you.

Steps to obtain the business licence

1. Name check: the Chinese name is submitted through the market regulation administration's online system, and approval usually comes within 1 to 3 working days.
2. Address: sign the lease and obtain a copy of the property ownership certificate. The application is rejected if the property is not registered for commercial use.
3. Incorporation file: the articles of association, the resolution appointing directors, the authenticated passport copies, the lease, and a power of attorney if an agent files for you.
4. Identity verification: many cities require the legal representative to verify their identity through an official app or in person, so plan for this if you are outside China.
5. Licence issued: usually within 5 to 15 working days after the complete file is accepted; the time varies by city and district.
6. Company seals: the official company seal, the finance seal, the legal representative's seal and the invoice seal are carved and registered with the local police.

How to activate import and export rights after the licence

The licence alone does not let you clear goods. These registrations turn the company into a working importer and exporter, in the usual order:

1. Bank accounts: a basic RMB account, a capital account to receive capital from abroad in foreign currency, then a USD current account to receive export proceeds. The legal representative usually attends in person, and this can take 1 to 4 weeks.
2. Tax registration: activate the company's account with the tax bureau, appoint the accountant and apply for an invoice quota. If you plan to export and reclaim tax, apply for general VAT taxpayer status early.
3. Customs registration: register the company as a customs declaration entity (报关单位备案) through the China International Trade Single Window and receive the 10-digit customs code. In many cities this can be filed together with the licence application.
4. E-Port card: the China E-Port card lets your customs broker submit declarations in your company's name and sign them electronically.
5. Trade foreign exchange directory: register the company with the State Administration of Foreign Exchange (SAFE) or through your bank, depending on the city. Without it the bank cannot smoothly collect or transfer foreign-currency trade payments.
6. Export VAT refund registration: with the tax bureau, so you can reclaim the VAT paid on purchases when you export. The refund rate depends on the product's HS code and ranges from 0% to 13%.

The last three registrations usually do not need you present, but they cannot start until the licence, seals and bank account are ready.

Products that need additional licences

General import and export rights do not cover every product. Importing food into China requires the importer to register with customs and the overseas manufacturer to be registered. Some exports, such as dual-use items and certain metals, need an export licence from the Ministry of Commerce, and hazardous chemicals need storage and transport permits. Go through the compliance checklist for importing from China, and ask your agent to confirm the HS codes for your products before you set the business scope. To see which goods are in growing demand, read China imports 2025: what the figures mean for Gulf traders.

Checklist before the first shipment in your company's name

• The licence lists import and export of goods in the business scope.
• The 10-digit customs code is issued and active.
• The E-Port card is ready and handed to your customs broker or linked to their account.
• The USD bank account is open and the company is registered in the trade foreign exchange directory.
• General VAT taxpayer status is active, and export refund registration is filed if you will export.
• Your accountant knows the monthly filing dates and the annual report deadline.
• Purchase contracts and Chinese invoices are issued in your company's name and code, not your personal name.

How long it takes and what it costs

The total time from submitting authenticated documents to the first shipment in your company's name is usually 6 to 10 weeks. What lengthens it: authenticating documents at home, which can take 2 to 4 weeks before the clock even starts, name rejections, address problems and bank appointments. What shortens it: choosing a district used to registering foreign companies, and filing the licence application and customs registration together.

Costs are made up of the incorporation agent's fee, the annual address rent, seal carving and bank charges, then the fixed monthly cost of accounting and tax filing. That last cost starts in the first month even if you sell nothing, so choose your accounting firm before the licence is issued, not after. Ask any agent for a written quote that itemises every line and states what is not included.

Common mistakes that delay the file or stall the company

• Narrow business scope: you list one activity, then find you need another and face a formal amendment that takes weeks.
• Unsuitable address: a lease on a residential flat, or a fake address discovered on inspection, puts the company on the list of abnormal operations.
• Inflated capital: a figure you cannot pay within 5 years becomes a liability for the shareholders.
• Stopping at the licence: you assume the licence means export rights, then the customs broker refuses to act because the company is not registered with customs.
• Ignoring zero returns: a company that has not started trading must still file monthly, and late filing lowers its tax rating and holds up tax refunds later.
• Unauthenticated documents: a plain passport copy or a commercial register without an apostille or legalisation sends the file back to the start.

What to do this week

• List the products you will import or export with their HS codes, to set the business scope and spot any extra licence.
• Check whether your country is party to the Apostille Convention, and start authenticating your passport or your existing company's documents.
• Choose the city by where your suppliers are and which port you will ship from: Shenzhen and Guangzhou are close to the southern ports, Shanghai and Ningbo to the eastern ones.
• Set a realistic capital figure that covers 6 to 12 months of operation.
• Ask for at least two written quotes for incorporation that include customs registration, the bank account and accounting.

If you want a team on the ground to handle the whole file from the licence to the customs code, HiGreenPanda does this through its company formation in China service.