What should you check before establishing a foreign-invested business in Mainland China?

Check market access for the actual activity

The Ministry of Commerce's 2025 Foreign Investment Guide explains the foreign-investment negative-list framework: some fields prohibit foreign investment and others impose conditions. It also describes the general market-access list, which applies to domestic and foreign businesses. Check the current rules for the sector and location before committing to a structure.

Plan beyond incorporation

The guide's establishment materials distinguish business registration from relevant approvals, licences and foreign-investment information reporting. They also identify administrative steps involving tax, banking, foreign exchange and employment-related registrations. The applicable steps depend on the proposed business; a licence to establish an entity does not answer every operational question.

What to prepare for a setup discussion

Use this planning checklist rather than treating it as a filing list:

• A plain description of products, services, customers and operating locations.
• The proposed investors, ownership proportions and management roles.
• The intended capital contributions and funding plan.
• Questions about premises, employees and sector permissions, with any proposed contracts.

Information boundary

This article provides general legal information, not legal advice, and does not create a solicitor-client relationship. A lawyer must assess the relevant facts, documents and current law before advising on a particular matter.