06 · ChinaMNC
Banking, tax and visas after registration
Once the licence is issued, the operational work begins. Opening a corporate bank account in China now involves enhanced due diligence: expect questions on your shareholders, source of funds, expected transaction volumes and counterparties. Prepare a clear business narrative and supporting contracts. A foreign currency capital account lets you bring in registered capital; keep the foreign exchange registration documents on file for every conversion and repatriation.
On tax, a new company typically registers as a general or small-scale VAT taxpayer. General taxpayer status suits companies that need to issue special VAT invoices to Chinese customers. Corporate income tax, VAT, stamp duty and individual income tax withholding for staff all apply. Bookkeeping must be in Chinese and filings are monthly or quarterly. Engage a local accountant from the start; retroactive clean-up is expensive.
For people, foreign staff need a work permit and a residence permit. The employer sponsors the work permit, which usually requires a degree, relevant experience and a clean criminal record check, legalised and translated. Plan work permit processing in parallel with company setup so your team can start once the licence and bank account are ready. Chinese employees need social insurance and housing fund registration.