Set up and run your company in mainland China

01 · ChinaMNC

Why mainland China deserves a place on your roadmap

For Romanian companies, China is rarely a single story. Some come for manufacturing and supply chain depth; others come because their customers, suppliers or partners are already there and they want a local presence to manage relationships, quality and payments directly. A Chinese entity can make it easier to invoice local customers in renminbi, hire staff, sign leases, hold licenses and deal with authorities in your own name rather than through an intermediary.

There are also practical reasons to look now rather than later. Romania sits inside the EU single market and has its own manufacturing and logistics strengths, which can complement rather than compete with a China presence. Markets are large but competitive, so the case for an entity should rest on a clear commercial plan: who your customers are, how you will reach them, and what a local team will actually do.

Be realistic about effort. Language, distance, time zones and differing business norms all add friction. Treat China as a medium-term commitment with a defined scope for the first phase, and keep expectations about timelines modest until you have tested demand and understood local compliance obligations.

02 · ChinaMNC

WFOE, joint venture or representative office

Most Romanian investors choose between three structures. The wholly foreign-owned enterprise (WFOE) is a limited liability company owned entirely by the foreign investor. It can conduct permitted business activities, invoice customers, employ staff and repatriate profits subject to tax and foreign exchange rules. It offers the most control, but requires capital, a registered address and full bookkeeping.

A joint venture (JV) brings in a Chinese partner, usually through an equity JV. This can help with licenses, local networks or land in restricted sectors, but governance, profit sharing and exit terms need careful drafting. Control is shared, and disputes can be slow to resolve.

A representative office (RO) is the lightest option. It cannot generate revenue directly; it is limited to liaison, market research and similar non-commercial activities. It suits companies testing the market or supporting an existing partner, but it is not a vehicle for selling or invoicing.

The right choice depends on sector, whether foreign ownership is permitted, your need for local partners, and how much capital and management attention you can commit. Check the current negative list for your activity before deciding.

03 · ChinaMNC

The five-step registration process

The sequence below reflects a typical setup. Exact steps, portals and required filings differ by city and by activity, so treat it as a planning framework.

• Step 1 — Feasibility and structure. Confirm your activity is open to foreign investment, choose WFOE, JV or RO, decide the city, and sketch capital, ownership and management. Define the business scope you will apply for.
• Step 2 — Name and address. Reserve a company name and secure a registered address that the local authority will accept. Many founders use a serviced or incubator address initially.
• Step 3 — Application and approvals. Prepare the articles of association and investor documents, then file with the market regulation authority. Some activities need sector-specific approvals before or after registration.
• Step 4 — Post-registration formalities. Obtain the business license, then arrange company seals, tax registration, and enrollment where required.
• Step 5 — Banking and operations. Open corporate bank accounts, complete foreign exchange and capital contribution steps, set up accounting and payroll, and arrange work permits and visas for foreign staff.

Each stage depends on the previous one, and document quality drives pace. Build slack into your plan rather than assuming a fixed number of weeks.

04 · ChinaMNC

Documents you will typically need

Document lists vary, but Romanian investors are usually asked for a core set. Gather these early, in clean and consistent form, and check with your local advisor which items need notarisation, apostille or translation into Chinese.

• Passport copies of the legal representative, directors and shareholders.
• Certificate of incorporation or registration of the Romanian investor, plus constitutional documents.
• Proof of the investor's legal existence and good standing, where requested.
• Board or shareholder resolutions authorising the investment and appointing signatories.
• Articles of association for the Chinese entity, drafted to local requirements.
• Lease or proof of the registered address, plus landlord documentation.
• Capital and funding information, and source-of-funds explanations for banking.
• Power of attorney if a local agent files on your behalf.
• Translations, notarisation and apostille as required by the receiving authority.

Names, addresses and dates must match across documents. Small inconsistencies are a common cause of delays, so have a single source of truth and review drafts before submission. Keep originals and digital copies organised for banking and tax onboarding later.

05 · ChinaMNC

Registered address and business scope

The registered address is more than a formality: it determines the local authority handling your file and must be a premises the registry accepts for your activity. Options include a leased office, a serviced office, or an incubator address offered by a provider. Some activities require a physical site with inspections. Confirm in writing that the landlord can supply the lease and property documents the registry expects, and that the address is zoned for your use.

Business scope defines what your entity may legally do. Write it to match your real operations, using standard wording accepted locally, and avoid padding it with activities you do not intend to perform. Some activities require a license or filing before or after registration; if so, plan that step into your timeline. Changing scope later is possible but adds administrative work.

Address and scope also affect banking and tax onboarding. Banks review your premises and activity when opening accounts, and tax authorities use the scope to assess registrations and invoicing. Keep the description accurate and be ready to explain your business model in plain terms.

06 · ChinaMNC

Banking, tax and visas in practice

Corporate banking has become more rigorous for foreign-invested entities. Expect due diligence on shareholders, beneficial owners, source of funds and expected transaction flows. Prepare a clear business narrative, contracts or letters of intent, and consistent documentation. Opening accounts can take time, and some banks prefer entities with a local office and staff. Maintain good records from day one.

On tax, a Chinese company is generally subject to corporate income tax and VAT, with invoicing through the official system. Rates, incentives and filing obligations depend on activity, location and status, and can change. Engage a local accountant early to handle bookkeeping, monthly or quarterly filings, payroll and annual reporting. Do not assume your Romanian accounting setup transfers directly.

For foreign staff, the usual route is a work permit paired with a residence permit, supported by the company's registration and employment documents. Short-term business visas suit meetings but not employment. Start immigration planning alongside company registration, because permits require the entity to exist and to meet local requirements. Budget for professional support on banking, tax and immigration rather than improvising.

07 · ChinaMNC

Common mistakes to avoid

Most problems are predictable. Founders often underestimate the time needed for banking and licensing, or assume registration equals readiness to trade. Below are recurring pitfalls and how to sidestep them.

• Choosing a structure before confirming sector rules. Check foreign ownership limits and licensing for your activity first.
• Treating the registered address as a mailbox. Make sure the premises and paperwork satisfy the registry and your bank.
• Overloading the business scope. Keep it accurate; extra activities can trigger reviews or licensing questions.
• Inconsistent documents. Names, dates and translations must align across every filing.
• Underestimating capital needs. Plan for setup costs, deposits, salaries and a runway before revenue.
• Ignoring tax and payroll from day one. Late or incomplete filings create avoidable friction.
• Leaving immigration to the end. Work permits depend on the entity and take time.
• No local language capability. Arrange translation and a trusted local advisor for filings and banking.

Finally, revisit your assumptions after the first months of operation. Adjust scope, staffing and processes based on what the market actually shows you.