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Asia

Manufacturers selling into the mainland market, China

WFOE (wholly foreign owned enterprise) structure gives foreign owners full control over a China incorporated entity selling to 1.4B consumers. High tech enterprise certification cuts CIT from 25% to 15%. Special Economic Zone incentives layer on top.

WFOE1.4B market15% high tech CIT
Start setup {placement} 4 min · no card required
Corp tax
25%
Fastest setup
4 months
Tax treaties
110
Region
Asia

What you'll need

  • Resident director required
  • Local registered office required
  • Economic-substance test applies
  • Minimum capital: CNY 100,000
  • Administrative language: Mandarin
  • Legal system: Civil law

Tax and treaty profile

  • Corporate tax 25%
  • Effective rate ~15%
  • Tax treaties 110
  • VAT rate 13%
  • Withholding on dividends 10%
Key treaty partners
USAUKGermanyFranceJapanKorea

Banking and payments

  • Banking takes 2 to 4 weeks with KYC
  • Stripe not supported

Considerations

If clean cross border banking matters more than market access

Capital controls under PBoC restrict free profit repatriation, Stripe and Mercury do not operate, and FX conversions need SAFE clearance. Most non China facing founders are better served by a gateway rather than a mainland entity.

PBoC capital controlsNo Stripe or MercurySAFE clearance for FX