Plan Your Business in Shanghai with Confidence

If you want to operate independently, sign contracts, issue invoices, and earn revenue, a wholly foreign-owned enterprise (WFOE) is usually the starting point. A joint venture (JV) may suit a business that needs a Chinese partner for commercial or regulatory reasons. A representative office (RO) is mainly for activities such as liaison and market research; it cannot conduct ordinary revenue-generating business. The right choice depends on your planned activities, ownership arrangements, and industry rules.

Your planned activities determine the company’s business scope. Before registration, check whether they are open to foreign investment and whether any activity needs a separate licence or approval. A business licence establishes the company, but it does not by itself authorise activities that require an industry-specific permit.

There is no single amount that suits every Shanghai company. The figure should reflect your start-up costs, operating plans, and any requirements specific to your industry. For a limited liability company, shareholders generally must pay their subscribed capital within five years of establishment, subject to applicable exceptions. Choosing an unrealistically high amount creates a real funding obligation; choosing too little may leave the business short of working capital.

No. Choose a compliant registered address that fits where and how your business will operate. The Free Trade Zone or Lingang may be attractive if your company qualifies for a relevant industry policy, but registration there does not automatically provide tax incentives or special approvals. Compare address requirements, actual operating needs, costs, and policy eligibility before selecting a district.

There is no reliable single timeline for every case. Registration depends on complete investor documents, the proposed business scope and address, and whether special approval is required. Obtaining the business licence is also different from being ready to operate: bank account opening, tax arrangements, company seals, and industry licences may take additional time. A realistic schedule should cover both stages.