The situation: A foreign investor or entrepreneur wanting to establish a legal business entity in China.
Applicable law: The Foreign Investment Law (2020) equalises the treatment of foreign and domestic investors in most sectors. Main entities: WFOE (wholly foreign-owned enterprise), JV (joint venture), representative office (does not permit direct commercial activities). Company Law (2023): there is no statutory minimum capital in most cases, but regulated sectors (banking, insurance, healthcare) have specific minimums. Some sectors are listed on the Negative List where foreign investment is prohibited or restricted.
Typical outcome: Registration through the unified business registration system, with an operating licence obtained before starting activities.
📑 Commercial cases · Awareness case
Setting Up a Foreign-Invested Company in China — Core Legal Requirements · Yalla China
🤝 Governing law: 外商投资法 / Foreign Investment Law 2020; 公司法 / Company Law 2023
A foreigner wanting to set up a company or business in China — what options are available and what is the minimum capital requirement?
Illustrative, general educational examples — not real specific facts and not legal advice; for awareness only. For an actual situation, consult a licensed lawyer.
🎓 The lesson / takeaway
Lesson: Consult a local lawyer specialising in foreign investment before taking any step. Check whether your sector is on the Negative List and make sure your activities are compatible with the Chinese tax and accounting system.
🕒 Updated: 16 March 2026