Set up and run your company in mainland China

01 · ChinaMNC

Why consider China from Moldova

For Moldovan companies, China is usually interesting for one of three reasons. First, sourcing and supply chain: many importers and light manufacturers in Moldova already buy from Chinese suppliers, and a local presence can improve quality control, supplier negotiation and logistics coordination. Second, market access: if your product or service has demand in China, a registered entity lets you invoice local customers, hire staff and build a brand rather than working purely through agents. Third, partnerships: Chinese firms are active in manufacturing, agri-food equipment, logistics and technology, and a legal vehicle in China can make joint projects easier to structure.

China is also a demanding market. Competition is intense, consumer expectations move quickly, and business culture rewards patience and relationship-building. Costs vary enormously between cities, and sector rules can restrict foreign ownership. A realistic approach is to start with clear commercial goals, confirm whether your activity is open to foreign investment, and choose a city where your customers, suppliers or partners actually are. Treat the entity as an operating tool, not a checkbox: budget for staff, compliance and local advice, and expect the first year to be about learning the market as much as selling into it.

02 · ChinaMNC

WFOE, joint venture or representative office

The three structures most often considered by foreign founders are the wholly foreign-owned enterprise (WFOE), the joint venture (JV) and the representative office (RO).

• WFOE: a wholly foreign-owned limited liability company. It can conduct permitted business activities, invoice customers, hire employees and remit profits. It is the most common choice for companies that want to trade, manufacture or provide services in China. The scope of activity must be within the foreign investment rules for your sector.
• Joint venture: a company shared with one or more Chinese partners. A JV can bring local market knowledge, licences, land or distribution, and may be required or preferred in some restricted sectors. It also means shared control, so governance, capital contribution and exit terms need careful drafting.
• Representative office: a liaison office that cannot generate revenue directly. It suits market research, supplier liaison and brand support, but it is not a vehicle for invoicing customers.

Your choice should follow the commercial model, not the other way round. If you need to invoice, import, export or employ staff, a WFOE or JV is normally the relevant option. Confirm sector restrictions and any required approvals before committing to a structure.

03 · ChinaMNC

The registration process in five steps

Exact procedures vary by city, but the overall sequence for a foreign-invested company usually looks like this.

• Step 1 — Plan and confirm eligibility. Define your business activities, check whether they appear on the negative list for foreign investment, and choose a city and registered address. Decide on legal representative, shareholders and capital.
• Step 2 — Company name approval. Submit proposed Chinese names for clearance through the local market regulation system. Names must be distinctive and comply with naming rules; prepare several options.
• Step 3 — Submit establishment registration. File the application with the local administration for market regulation, including articles of association, investor documents, address proof and appointment documents. If your sector requires a filing or approval, complete it at this stage.
• Step 4 — Seals and post-licence formalities. Have the company seals made, then complete registration with the tax authority, social insurance and other required systems.
• Step 5 — Bank account and go-live. Open the corporate bank account, arrange capital contribution as required, set up accounting and begin operations.

Timelines depend on document readiness, city workload and sector approvals, so plan with buffer rather than assuming a fixed schedule.

04 · ChinaMNC

Documents Moldovan founders should prepare

Document requirements are set locally, but foreign investors are commonly asked for the following. Prepare clean, consistent paperwork and keep names and addresses identical across documents.

• Investor documents: certificate of incorporation or registration for a company investor, or passport for an individual, together with constitutional documents where requested. These usually need notarisation and legalisation or an apostille, plus a Chinese translation where required. Moldova is not a party to the Apostille Convention, so consular legalisation is typically the route; confirm the current procedure with the Chinese embassy or consulate and your adviser.
• Company name options: several proposed Chinese names in order of preference.
• Registered address proof: lease agreement and property documents for the proposed office.
• Articles of association: drafted to reflect ownership, governance and capital.
• Appointment documents: legal representative, directors, supervisor and authorised signatory, with identity documents.
• Bank and tax forms: completed after licence issuance, often with originals and seals present.

Translation quality and consistency matter. A small error in a name or address can trigger a refiling, so review everything before submission.

05 · ChinaMNC

Registered address and business scope

Two items cause more delay than almost any others: the registered address and the business scope.

Registered address. The company must have a lawful address in the city of registration, supported by a lease and property documentation. Some cities allow serviced or virtual office arrangements for certain activities, while others require a physical office and may inspect it. Manufacturing, food, logistics and other regulated activities usually need premises that meet specific standards. Choose an address that matches your real operations and confirm with the local authority what evidence is accepted.

Business scope. This is the official description of what the company may do, written in standard Chinese phrasing. It should cover your current activities and reasonable near-term ones, because adding items later means a change registration. Some activities require a pre-approval or a post-registration licence; if your scope includes them, plan for that extra step. Avoid copying a long generic scope from another company: an inaccurate scope can complicate bank onboarding, invoicing and tax treatment. Ask your local adviser to draft it around your actual business model, and revisit it when you add products, services or an import-export function.

06 · ChinaMNC

Banking, tax and visas after incorporation

Once the licence and seals are in place, the operational work begins.

Banking. Open a corporate RMB account and, where needed, a foreign currency account. Banks apply their own onboarding and compliance checks, so expect questions about ownership, business model, expected flows and counterparties. Prepare contracts, invoices and a clear explanation of your activity. Internet banking and payment tools are usually set up alongside the account; allow time for activation and testing before you rely on them.

Tax. Complete tax registration and confirm your taxpayer status, invoicing requirements and reporting cycle with a local accountant. China's tax system includes corporate income tax, value-added tax and other levies depending on activity. Bookkeeping and filing obligations apply from the start, even in a quiet first year, so appoint an accounting provider early and keep records organised.

Visas and permits. Foreign staff typically need a work permit and a residence permit, and the process is usually handled after the company is established and able to sponsor employees. Short-term business visas suit meetings and supplier visits but are not a substitute for working. Rules and documentary requirements change, so confirm the current procedure with the Chinese embassy or consulate and the local authorities where you will operate. Plan recruitment and travel around these timelines.

07 · ChinaMNC

Common mistakes to avoid

Most problems in a China setup come from preparation rather than the rules themselves. Watch for these patterns.

• Choosing a city for the wrong reason. Cheap registration in a place with no customers, suppliers or staff rarely pays off. Locate where the business actually happens.
• Underestimating document formalities. Legalisation, translation and consistency across documents take time. Start early and check the current consular requirements for Moldovan documents.
• Writing a vague or overbroad business scope. It can block bank onboarding or create licensing obligations you did not intend. Match it to your real activity.
• Ignoring the registered address rules. An address that cannot be evidenced or inspected may derail registration or later compliance.
• Treating bank onboarding as automatic. Banks conduct their own due diligence. Prepare a coherent explanation of your business and expected transactions.
• Assuming a visa is a formality. Work authorisation is a separate process with its own conditions; do not plan to staff the company before it is arranged.
• Skipping local professional support. A licensed adviser or accountant familiar with your city and sector is usually worth the cost.

Finally, keep expectations realistic. Registration is a beginning; building customers, staff and compliance routines is the real work.