How to Establish an Import and Export Company in China

You buy from Chinese factories every month, and paying through agents or personal accounts is becoming slow, costly and hard to control. An import and export company in China lets you sign contracts, pay suppliers in yuan, export under your own name and claim export tax rebates. It also brings paperwork: registration, seals, a bank account, customs records and monthly tax returns. By the end of this guide you will know each step, the documents you need, how long it takes and where foreign founders usually go wrong.

Is a Chinese trading company right for you?

China is one of the most important trade centres in the world, and a local company gives you direct access to it. It makes sense if you buy regularly, want to consolidate goods from several suppliers under one exporter, need to invoice in yuan, or plan to sell into China as well as out of it. If you order a few containers a year from one supplier, a sourcing agent may still cost less than running a company.

Before you start, decide three things: which city you will register in, who will be the legal representative, and whether that person will live in China. Choose a city close to your suppliers. Shenzhen and Guangzhou suit electronics and consumer goods, Yiwu suits small commodities, and Shanghai suits companies that also want a base for finance and services. If you plan to work in China yourself, you will also need a work permit and residence permit; see how work permits and social security cards now link for foreigners.

Choose the legal structure and company name

Legal structure

Most foreign investors choose a Wholly Foreign-Owned Enterprise (WFOE). It gives the foreign investor full ownership and control of the business, with no Chinese partner required. Since China's Foreign Investment Law took effect in 2020, a WFOE is formally registered as a foreign-invested limited liability company, but the term WFOE is still widely used. A representative office is not an alternative: it cannot sign sales contracts, issue invoices or trade.

Company name

The name must be in Chinese and reflect the nature of the business, for example Import and Export (进出口) or Trading (贸易). The usual format is city, trade name, industry and legal form, such as Shanghai (trade name) Import and Export Co., Ltd. The local authorities check it for uniqueness, so prepare 3 to 5 alternatives. You can also choose an English name for contracts, but only the Chinese name has legal standing.

Prepare documents and register the company

The application goes to the local Administration for Market Regulation (AMR). You fill in the company registration form and attach the required documents. Once the file is complete, initial registration and the business licence typically take 3 to 5 business days. The full process, from preparing documents abroad to a working bank account and customs code, usually takes 4 to 8 weeks, longer if documents need legalisation.

Documents checklist

• Passport of the main investor or each shareholder, translated and notarised.
• If the shareholder is a company, its certificate of incorporation and articles, notarised and translated.
• Proof of a company address in China: a lease or ownership contract.
• A detailed business plan and the proposed business scope, including import and export.
• A shareholder agreement if there is more than one investor.
• Passport copies and photos of the legal representative, director and supervisor.
• The registered capital amount and payment timetable.

China joined the Apostille Convention in November 2023. If your home country is also a member, an apostille replaces consular legalisation of foreign documents. If it is not, documents still need legalisation through the Chinese embassy or consulate. Check your country's status before you start, because this step alone can take 2 to 4 weeks.

The registration sequence

1. Reserve the Chinese company name with the AMR.
2. Sign the lease for the registered address.
3. Submit the application and documents to the AMR and receive the business licence.
4. Have the company seals carved by an approved engraver and filed with the police: company seal, finance seal, legal representative seal and invoice seal.
5. Open the company bank accounts and complete foreign exchange registration for the capital.
6. Register with the local tax bureau and set up electronic invoicing.
7. Register with customs as an importer and exporter and obtain your customs code.
8. Inject capital within the legal deadline and start trading.

Capital, address and trading permits

Registered capital

Registered capital varies with business type and location, and there is no legal minimum for most trading companies. No immediate deposit is required at registration, but the amount is a real financial commitment. Under the revised Company Law in force since July 2024, shareholders of a limited liability company must pay subscribed capital in full within 5 years. Set an amount that covers your first 6 to 12 months of costs; suppliers and banks will see it on your licence.

Company address

A physical address in China is mandatory. You can rent an office, or, in some special economic zones and free trade zones, use a virtual address service. A registered business address must be accepted by the local AMR; a residential flat usually is not.

Customs registration and inspection

To import or export, the company must register with China Customs as a consignor and consignee and receive a customs registration code. You may see this called an EORI code, but EORI is an EU term; in China it is the customs registration code, and it can often be applied for alongside business registration. Quality inspection and quarantine used to sit with AQSIQ; since 2018 those duties belong to the General Administration of Customs (GACC). Certain products, such as food, cosmetics and goods requiring CCC certification, need extra approvals. The compliance checklist for importing from China lists what to check for each product. Our guide to business licence and import and export rights in China sets out the full order of steps.

Open the company bank account

The company bank account is essential for international transfers, supplier payments and tax payments. Choose a bank experienced with foreign-invested companies, such as ICBC or Bank of China. Banks will ask for the business licence, the company seals and the passport of the legal representative. The legal representative is usually required to attend in person to sign the account agreements, so plan the trip before booking the appointment.

Open a basic yuan account for daily operations, a foreign currency capital account to receive the registered capital, and a foreign currency current account for trade receipts and payments. Approval can take 1 to 4 weeks depending on the bank and branch. Support with corporate bank account opening helps when the bank asks for extra documents or an interview in Chinese.

Register for tax and file every month

After company registration, you must register with the local tax authority. You will need the business licence, the company seal and the legal representative's information. Decide early whether to become a general VAT taxpayer: exporters normally need this status to claim export VAT rebates, which can be a significant part of your margin on goods with high rebate rates.

Companies in China must file monthly tax reports, even in months with no sales. Missing a nil return can lead to fines and a lower tax credit rating, which slows rebates and bank checks. Most foreign founders use a local accountant or specialist firm; accounting and tax filing covers monthly returns, annual reports and rebate claims.

Common mistakes foreign founders make

• Writing a business scope that leaves out import, export or the specific products you trade, then having to amend the licence.
• Choosing a legal representative who cannot travel to China when the bank needs them.
• Setting registered capital high to impress suppliers, then struggling to pay it within 5 years.
• Using a residential address that the AMR or tax bureau rejects on inspection.
• Forgetting customs registration and discovering it when the first shipment is at the port.
• Skipping monthly nil tax returns in the months before trading starts.
• Keeping all company seals with an agent you barely know. Whoever holds the company seal can bind the company.

Two broader points from experience. Company establishment rules differ by region, so work with a local consultant rather than relying on another city's rules. And build strong relationships with local authorities, your bank manager and your suppliers; guanxi in the Chinese business environment explains why this shortens every future process.

What to do this week

Decide the city, the legal representative and the business scope. Check whether your country is a member of the Apostille Convention, then start notarising passports and any corporate shareholder documents, because this is usually the slowest step. Draft 3 to 5 Chinese company names and a registered capital figure you can pay within 5 years. Ask your main suppliers which city and bank they deal with most. When your documents are ready, HiGreenPanda can handle registration, seals, bank appointments and customs filing on the ground through its company formation service.