📑 Commercial cases · Awareness case
Establishing a Foreign-Invested Limited Liability Company in China · Yalla China
🤝 Governing law: قانون الشركات / Company Law of China (2023 Amendment) + FDI Law (2019)
The Foreign Investment Law (2019) and Company Law (revised 2023) allow foreigners to establish limited liability companies in China under unified conditions with Chinese citizens.
Illustrative, general educational examples — not real specific facts and not legal advice; for awareness only. For an actual situation, consult a licensed lawyer.
Under the Foreign Investment Law (2019) and Company Law (revised 2023): Steps to establish a foreign-invested limited liability company: (1) Verify the sector: check the Negative List for foreign investment to confirm the sector is not restricted; (2) Register the company name at the Market Supervision Administration; (3) Designate a business address (registered lease); (4) Open a temporary bank account and deposit capital; (5) Obtain a business license from the Market Supervision Administration; (6) Tax registration (VAT + income tax). Minimum capital: generally no statutory minimum (revised 2023). Timeline: 2-4 weeks in special economic zones.
🎓 The lesson / takeaway
Consult a business lawyer specializing in Chinese law before choosing between a limited liability company and a representative office. Each has different tax obligations and operational requirements.
🕒 Updated: 16 March 2026