Company Registration Procedure for Foreign-Invested Enterprises in China
Just ten years ago, the procedure for establishing a foreign-invested company in China resembled navigating a labyrinth with many closed doors. The foreign investor was forced first to find the “right key” – a special permit – and only then received the right for their company to exist in the form of a business license. […]
Just ten years ago, the procedure for establishing a foreign-invested company in China resembled navigating a labyrinth with many closed doors. The foreign investor was forced first to find the “right key” – a special permit – and only then received the right for their company to exist in the form of a business license. This approach, burdened by barriers inherited from the era of “opening up,” created a field of uncertainty and significant time costs at the start. The situation has undergone a radical transformation. Today, China offers foreign capital not a labyrinth but a clear and largely standardized registration roadmap, fundamentally changing the regulatory philosophy. The introduction in 2020 of the Foreign Investment Law (FIL) became not merely a legal reform but a symbolic “reboot” of the system, replacing three different sets of rules for various types of enterprises with one common standard. The modern process can be characterized by three key principles: Universality: Regardless of whether the company is a joint venture or wholly foreign-owned, the basic registration process follows unified rules. “License First”: The company is legally born at the moment the business license is issued, allowing for quick market entry, while necessary industry-specific permits are obtained in parallel or afterwards. Transparent Boundaries: The main reference point for an investor is the “Negative List” – an exhaustive and publicly available list of industries with restrictions. If the business sector is not included in it, the path to registration is maximally straightforward and comparable to the procedure for a Chinese investor. This article serves as a detailed navigator through this updated system. We will break down the standard registration procedure step by step, explain the logic behind the “Negative List,” and highlight special scenarios for large-scale projects requiring capital construction. Understanding this structure is the first and decisive step toward the successful and predictable legalization of your business in China. <img fetchpriority="high" decoding="async" width="1190" height="1144" src="https://www.vitaliberta.hk/wp-content/uploads/2026/04/1.-three-principles-of-modern-company-registration-in-china.webp" alt="" class="wp-image-24479" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/04/1.-three-principles-of-modern-company-registration-in-china.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/04/1.-three-principles-of-modern-company-registration-in-china-300x288.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2026/04/1.-three-principles-of-modern-company-registration-in-china-1024x984.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2026/04/1.-three-principles-of-modern-company-registration-in-china-768x738.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/04/1.-three-principles-of-modern-company-registration-in-china-156x150.webp 156w" sizes="(max-width: 1190px) 100vw, 1190px" /> Legal Basis for Foreign-Invested Enterprises in China Since January 1, 2020, the regulation of foreign investment in China has entered a new era thanks to the entry into force of the Foreign Investment Law of the People’s Republic of China (FIL). This foundational document replaced the outdated tripartite system, unified the legal landscape, and significantly strengthened the protection of foreign investors’ rights. Key Change: Unification of Legislation The new law completely repealed the three previous specialized laws that regulated different forms of foreign presence: Law on Sino-foreign Equity Joint Ventures; Law on Sino-foreign Cooperative Joint Ventures; Law on Wholly Foreign-Owned Enterprises. <img decoding="async" width="1190" height="1489" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-unification-of-the-legal-landscape-regulating-the-establishment-and-operation-of-legal-entities-with-foreign-capital-in-china.webp" alt="" class="wp-image-24496" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-unification-of-the-legal-landscape-regulating-the-establishment-and-operation-of-legal-entities-with-foreign-capital-in-china.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-unification-of-the-legal-landscape-regulating-the-establishment-and-operation-of-legal-entities-with-foreign-capital-in-china-240x300.webp 240w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-unification-of-the-legal-landscape-regulating-the-establishment-and-operation-of-legal-entities-with-foreign-capital-in-china-818x1024.webp 818w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-unification-of-the-legal-landscape-regulating-the-establishment-and-operation-of-legal-entities-with-foreign-capital-in-china-768x961.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-unification-of-the-legal-landscape-regulating-the-establishment-and-operation-of-legal-entities-with-foreign-capital-in-china-120x150.webp 120w" sizes="(max-width: 1190px) 100vw, 1190px" /> Thus, all foreign-invested enterprises (FIEs) – whether joint ventures or companies with 100% foreign capital – now adhere to the same basic corporate laws of the PRC, similar to local companies: For legal entities: The Company Law of the PRC (on limited liability companies or joint-stock companies) applies. For non-corporate forms (e.g., partnerships): The Partnership Law of the PRC applies. Within the scope of this review, the focus is on the most common form – companies established in accordance with the Company Law. <img decoding="async" width="1190" height="1438" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.-fie-any-commercial-organization-in-china-whose-registered-capital-involves-a-foreign-investor.webp" alt="" class="wp-image-24511" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.-fie-any-commercial-organization-in-china-whose-registered-capital-involves-a-foreign-investor.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.-fie-any-commercial-organization-in-china-whose-registered-capital-involves-a-foreign-investor-248x300.webp 248w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.-fie-any-commercial-organization-in-china-whose-registered-capital-involves-a-foreign-investor-847x1024.webp 847w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.-fie-any-commercial-organization-in-china-whose-registered-capital-involves-a-foreign-investor-768x928.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.-fie-any-commercial-organization-in-china-whose-registered-capital-involves-a-foreign-investor-124x150.webp 124w" sizes="(max-width: 1190px) 100vw, 1190px" /> National Treatment and the “Negative List”: The Dual Foundation of China’s Economic Openness China’s legal framework for investment proclaims the principle of national treatment as fundamental. This guarantees foreign investors and companies equal business conditions with domestic players, the application of identical standards, and legal protection in the vast majority of industries. Exceptions to this general rule are systematized and transparent thanks to the “Negative List for Market Access of Foreign Investment” mechanism. This list, subject to regular review and consistent reduction, serves as a clear regulator. It structures industries into two categories of restrictions: Prohibited for foreign capital. This includes strategic and sensitive sectors where foreign investment is completely excluded (for example, defense industry, certain media services). Restricted for foreign capital. In these sectors, investment is permissible but subject to specific conditions, such as an established limit on the share of foreign participation in the registered capital (for example, 50% or 51%) or a requirement to appoint a Chinese resident to certain management positions (as in the financial sector or telecommunications). <img loading="lazy" decoding="async" width="1190" height="2073" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-_national-treatment-and-the-negative-list_-the-dual-foundation-of-chinas-economic-openness__.webp" alt="" class="wp-image-24526" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-_national-treatment-and-the-negative-list_-the-dual-foundation-of-chinas-economic-openness__.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-_national-treatment-and-the-negative-list_-the-dual-foundation-of-chinas-economic-openness__-172x300.webp 172w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-_national-treatment-and-the-negative-list_-the-dual-foundation-of-chinas-economic-openness__-588x1024.webp 588w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-_national-treatment-and-the-negative-list_-the-dual-foundation-of-chinas-economic-openness__-768x1338.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-_national-treatment-and-the-negative-list_-the-dual-foundation-of-chinas-economic-openness__-882x1536.webp 882w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-_national-treatment-and-the-negative-list_-the-dual-foundation-of-chinas-economic-openness__-1176x2048.webp 1176w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-_national-treatment-and-the-negative-list_-the-dual-foundation-of-chinas-economic-openness__-86x150.webp 86w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> The Chinese model combines the principle of equality with strategic caution: national treatment ensures openness, while the ‘negative list’ provides control over sensitive sectors. This makes the investment environment in China both attractive and manageable. Free Trade Zones: Preferential Treatment and the “Shortened List” In addition to the national regulatory system, China employs a targeted tool for deepening openness – the special regime of Free Trade Zones (FTZs). Such zones, including leading financial and innovation hubs (Shanghai, Hangzhou, Guangdong, Tianjin, Hainan, etc.), function as experimental platforms for accelerated development. Their key feature is the application of a special, “shortened” Negative List, which contains significantly fewer restrictions for foreign capital compared to the nationwide list. This provides investors in FTZs with preferential access to sectors that remain restricted in other parts of the country (for example, telecommunications, education, healthcare). Thus, FTZs serve as “testing grounds”: new models of openness are trialed here and, after successful implementation, can be scaled up across the entire country. The 2020 reform, which enshrined the principle of national treatment in legislation, created a unified and transparent framework for foreign investment. In this system, FTZs act as locomotives of continuous liberalization. They not only attract high-tech projects through preferential conditions but also practically demonstrate the effectiveness of further reducing restrictions, thereby generating demand for updating the nationwide list. Foreign-Invested Company Registration in China <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> WFOE setup for foreign investors <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> SAMR documentation preparation <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> End-to-end support until business license issuance Free consultation Company Registration Procedure for Foreign-Invested Enterprises in China The procedure for registering a foreign-invested company in China continues to become more standardized and transparent. A key trend for 2026 is the shift in focus from formally completing the registration process to the strict compliance of a company’s actual activities with its statutory documents, licenses, and subsequent tax accounting. Authorities expect accuracy, transparency, and full alignment of declared objectives with real business activity. Despite global challenges, China remains attractive to investors, as evidenced by the registration of 53,782 new foreign-invested enterprises (FIE) in the first 10 months of 2025, a 14.7% increase compared to the previous year. Key Decisions at the Pre-registration Stage The success of the entire process is laid at the preparation stage, where two fundamental decisions must be made. Choice of Organizational-Legal Form: This determines taxation, HR policy, and market exit options. The main options are: Wholly Foreign-Owned Enterprise (WFOE): The most popular form, ensuring full control. Suitable for trade, services, manufacturing, and R&D. Joint Venture (Equity or Contractual): Used when the presence of a Chinese partner is a mandatory requirement (according to the “Negative List”) or strategically advantageous. Representative Office: Suitable only for research, marketing, and coordination activities. Cannot directly conduct commercial activities or generate revenue. Determination of Business Scope: This is a critically important step. Authorities require clear and specific wording that must fully correspond to actual operations. Too broad a description will raise questions, while too narrow a description will limit growth. The choice of scope also determines the need to obtain special permits (licenses). “Negative List” Context: Checking against the current “Negative List for Market Access of Foreign Investment” remains mandatory. New Opportunities: Concurrently, it is worth studying the “Catalogue of Encouraged Industries for Foreign Investment” (the latest version effective from February 1, 2026), which adds 205 new items, especially in advanced manufacturing and high technology. Furthermore, preferential conditions apply for the services sector in 20 pilot cities, for example, lifting restrictions on foreign capital share in internet services. <img loading="lazy" decoding="async" width="1609" height="1247" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-choice-of-organizational-legal-form-when-registering-a-company-in-china.webp" alt="" class="wp-image-24541" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-choice-of-organizational-legal-form-when-registering-a-company-in-china.webp 1609w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-choice-of-organizational-legal-form-when-registering-a-company-in-china-300x233.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-choice-of-organizational-legal-form-when-registering-a-company-in-china-1024x794.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-choice-of-organizational-legal-form-when-registering-a-company-in-china-768x595.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-choice-of-organizational-legal-form-when-registering-a-company-in-china-1536x1190.webp 1536w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-choice-of-organizational-legal-form-when-registering-a-company-in-china-194x150.webp 194w" sizes="auto, (max-width: 1609px) 100vw, 1609px" /> 2. Procedure for Establishing a Limited Liability Company (LLC) in China: A Step-by-Step Algorithm The registration of a legal entity in China is a strictly regulated administrative procedure, where each subsequent stage is initiated only after the result of the previous one is recorded in unified state registries. The modern regulatory paradigm is based on the principle of end-to-end digital integration between authorities (SAMR, State Taxation Administration, State Administration of Foreign Exchange, banking system), which eliminates the possibility of providing conflicting data at different stages of the process. Stage 1. Reservation of the Legal Entity’s Name Submitting an application to the local branch of the State Administration for Market Regulation (SAMR) for preliminary approval of a unique company name. The name is checked for compliance with the rules for composing company names, absence of duplicates, and similarity to the point of confusion with already registered companies and registered trademarks in the jurisdiction. It is recommended to submit 2 to 5 alternative options to minimize time costs in case of rejection. Stage 2. Legalization of the Registered Address and Registration of the Lease Agreement Formalization of a lease agreement for non-residential premises, which will serve as the company’s registered address, followed by its mandatory registration with the competent authorities. The leased premises must have the designated purpose “for commercial/office activities.” Using residential property for registering a legal entity is prohibited. A standard model lease agreement is subject to official registration at the Real Estate Management Center. An unregistered agreement has no legal force for company registration purposes. Owners of business centers often provide a package of documents from the owner (lease agreement) necessary for submission to SAMR. Verification of the address for compliance with the “actual location” is a common practice of regulatory authorities. Stage 3. Preparation, Notarization, and Submission of Incorporation Documents Forming a package of corporate documents and submitting it to SAMR to obtain approval for the company’s establishment. Key documents: Company Registration Application. Articles of Association. Resolution/Minutes of Incorporation. Identity documents of the founders and appointed directors (for foreign individuals – notarized and legalized copies of passports). Proof of legality of the registered address (registered lease agreement + documents from the owner). Declaration of the registered capital amount. Currently, for the vast majority of industries, there is no legally established minimum registered capital amount. The concept of “subscribed capital” provides flexibility to founders. Founders independently declare the total amount of registered capital in the Articles of Association. It is permissible to establish a schedule for its actual payment (Contribution Schedule) within a set period, which can be up to 5 years from the date of registration. This schedule can be fixed in the Articles of Association or determined by the owner at their discretion. The declared amount must be economically justified by the business plan. Stage 4. Obtaining the Business License (Legal Entity Registration Certificate) After document verification, SAMR issues a unified license document – the Company Business License. This document is unconditional proof of the creation of a legal entity, containing its unique registration number (Unified Social Credit Code). Without this license, any subsequent legally significant actions are impossible. Stage 5. Production and Registration of the Company’s Official Seals Based on the business license, the company’s physical seals are produced at an accredited public security bureau branch. The mandatory set of seals includes: Company Seal (公章), Financial Seal (财务章), Legal Representative’s Seal (法人章), Contract Seal (合同章). Each seal is registered with the police and has a unique number. The legal force of a document is determined by the presence of the “impression of the company seal” on it, not just a signature. Stage 6. Opening the Corporate Basic Capital Account The company applies to a chosen Chinese bank to open its first settlement account. The bank conducts the “Know Your Customer” (KYC) procedure in strict accordance with the data already entered into the SAMR system. Any discrepancy (for example, in the spelling of the director’s name, address) will lead to refusal. It is into this account that the first portion of the registered capital is deposited in accordance with the approved schedule. After confirming the payment, the bank issues a Capital Contribution Certificate (入资证明), which is critically important for the next stage. Stage 7. Registration with the State Taxation Administration Mandatory registration with the tax office at the place of registration within 30 days after obtaining the license. Data from SAMR is automatically transferred to the tax system. At this stage, the following occurs: Final data verification. Determination of the taxation system (general or simplified). Obtaining permission to use electronic invoices (Fapiao). Signing an agreement with the bank for automatic tax withholding (Tax Withholding Agreement). Stage 8. Registration with Social Security and Pension Funds Registration with local social security and housing provident fund management centers. Registration is a mandatory prerequisite for the legal employment of any employee, including the founder-general director. Non-compliance results in significant fines and operational blocking. After completing the eight stages, the company acquires full legal capacity. However, to begin operational activities, obtaining additional industry-specific permits may be required, the list of which is determined by the industry codes specified in the business license. <img loading="lazy" decoding="async" width="1190" height="2318" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-8-key-registration-stages.webp" alt="" class="wp-image-24556" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-8-key-registration-stages.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-8-key-registration-stages-154x300.webp 154w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-8-key-registration-stages-526x1024.webp 526w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-8-key-registration-stages-768x1496.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-8-key-registration-stages-789x1536.webp 789w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-8-key-registration-stages-1051x2048.webp 1051w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-8-key-registration-stages-77x150.webp 77w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> 3. Special Cases and Additional Procedures for Company Establishment in China Special Cases: “Greenfield” Projects and Capital Construction For investment projects involving the construction of new facilities from scratch (factories, logistics centers, technology parks), the company establishment procedure is an expanded and multi-stage process. In addition to the standard legal entity registration, the investor must undergo a complex set of preliminary approvals and obtain specialized permits before commencing construction work and commissioning the facility. Preliminary Approval and Strategic Review The initial phase involves interaction with authorities responsible for strategic planning and investment policy—the National Development and Reform Commission (NDRC) or its regional branches. The project undergoes an assessment for compliance with national and regional industrial priorities, with its scale, energy intensity, and overall strategic significance analyzed. For energy-intensive industries, a separate requirement is conducting an energy audit and providing a plan for improving energy efficiency. b. Construction, Environmental, and Expert Procedures Following strategic approval, the stage of detailed project coordination with specialized regulatory authorities begins. These processes can often be initiated or conducted in parallel. Urban Planning: Obtaining an approved land use plan and construction permit from local architecture and urban planning authorities. c. Environmental Impact Assessment (EIA): Conducting an environmental impact assessment, coordinated with the local environmental protection bureau. Mandatory for industrial, chemical, and other facilities with potential environmental risk. Occupational Health, Safety, and Environmental Protection (EHS): Developing and coordinating a package of documents on occupational risk assessment, fire safety, and sanitary and hygienic standards. The strictness of requirements varies by region: in megacities (Shanghai, Shenzhen), they are typically significantly higher than in less developed provinces. Although these procedures can be carried out in parallel, their successful completion is an unconditional prerequisite for the start of construction and the subsequent commissioning of the facility. d. Industry Licensing After Facility Creation After completing construction and registering the company, the investor proceeds to obtain special industry licenses, which grant the right to engage directly in business activities. For example: Food production requires a food business license. Pharmaceutical manufacturing is impossible without product registration and GMP certification. Activities in the education sector are subject to licensing by the applicant. Exception: Sectors with Preliminary Permitting Procedure For a number of strictly regulated sectors (finance, telecommunications, education with foreign participation, etc.), a reverse order of legalization applies. In these cases, the investor is first obligated to obtain preliminary approval from the industry regulator and only after that has the right to register the company with SAMR. Example: to establish a company in the securities market, preliminary approval from the China Securities Regulatory Commission (CSRC) is required. Only with this decision in hand can the founders submit documents to obtain a business license. <img loading="lazy" decoding="async" width="1190" height="1340" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-_reverse-order_-for-separately-licensed-types-of-activities-in-china.webp" alt="" class="wp-image-24571" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-_reverse-order_-for-separately-licensed-types-of-activities-in-china.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-_reverse-order_-for-separately-licensed-types-of-activities-in-china-266x300.webp 266w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-_reverse-order_-for-separately-licensed-types-of-activities-in-china-909x1024.webp 909w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-_reverse-order_-for-separately-licensed-types-of-activities-in-china-768x865.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-_reverse-order_-for-separately-licensed-types-of-activities-in-china-133x150.webp 133w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Thus, implementing a “greenfield” project requires not only significant capital investment but also a deep understanding of the multi-level system of administrative approvals, where the sequence of actions and interaction with specialized authorities are of critical importance for success. List of Required Documents for the Registration of a Foreign-Invested Company The formation of a foreign-invested enterprise in China is associated with strict compliance with a regulated documentation process. The list presented below reflects the exhaustive set of official papers required to initiate the registration procedure with the State Administration for Market Regulation (SAMR) and other authorized bodies. Each document must meet established formal criteria, and its content must comply with the norms of Chinese corporate law. Incorporation and Registration Forms (Establishment Registration Forms) Company Registration Application on the SAMR form – A unified form containing legally significant declarations: the company’s full name in Chinese, the declared amount of registered capital, its payment schedule, information about the founders, management structure, registered address, and types of economic activity (business scope). The applicant’s (future legal representative’s) signature is subject to verification. Constitutional Document Company Articles of Association – The internal set of rules regulating the company’s activities. The document must include provisions on the purpose of establishment, the amount and distribution of registered capital shares, the rights and obligations of investors, the competence and formation procedure of executive and supervisory bodies, the procedure for making key decisions, as well as conditions for liquidation. The Articles of Association are signed by all founders and serve as the basis for resolving corporate disputes. Documents on the Formation of Corporate Bodies (Corporate Governance Appointments) Shareholders’ Resolution/Minutes of the Incorporation Meeting – Records the collective decision of the founders to establish the company, approve its Articles of Association, and appoint key officers. Appointment Letters – Individual official documents confirming the authority of: Legal Representative – The person authorized to act on behalf of the company without a power of attorney. • Supervisor – A mandatory control body for a limited liability company, not part of the executive management. The appointment of a supervisory board member or a sole supervisor is an imperative legal requirement. • Financial Controller – The employee responsible for maintaining accounting records and interacting with tax authorities. Documents Certifying the Legal Capacity of Founders (Investor Identity and Capacity Proof). For foreign individuals: A copy of a valid passport, notarized in the country of citizenship and legalized via apostille or consular legalization in China. A notarized translation into Chinese is required. For foreign corporate founders: • Certificate of Incorporation or equivalent document confirming legal status. • A valid certificate of good standing or extract from the commercial register, certifying that the company is not in the process of liquidation or bankruptcy. • Articles of Association or similar constitutional document. • A document confirming authority, permitting this person to sign the incorporation documents of the Chinese company on behalf of the foreign investor. All listed documents are subject to notarization, legalization (apostille/consular legalization), and translation into Chinese. Documents Confirming the Legitimacy of Using the Registered Address Chinese legislation requires the provision of indisputable proof that the company has a real non-residential premises for conducting activities. The following documents are accepted: • Standard Lease Agreement, signed with the owner of commercial real estate and having undergone mandatory registration at the local Real Estate Management Center. The lease term, as a rule, must be at least one year. • Property Ownership Certificate (房产证): A copy provided by the landlord. • Address Filing Form (住所经营场所使用证明): A document in the prescribed form, issued by the property owner or the management company of the business center, confirming consent to use the address for registering a legal entity. The use of so-called “virtual offices” or P.O. boxes for the initial registration of an FIE is not legally permitted. SAMR reserves the right to conduct an on-site inspection of the specified address. This set is basic and mandatory for initiating the procedure. Depending on the specific administrative district, the specifics of business activities (e.g., those restricted for foreign investment), and the requirements of industry regulators, authorized bodies have the right to request additional permits or approvals. It is recommended to prepare the package with the assistance of a qualified local consultant or lawyer. <img loading="lazy" decoding="async" width="1190" height="1834" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-documents-for-registering-a-foreign-invested-company-in-china.webp" alt="" class="wp-image-24586" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-documents-for-registering-a-foreign-invested-company-in-china.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-documents-for-registering-a-foreign-invested-company-in-china-195x300.webp 195w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-documents-for-registering-a-foreign-invested-company-in-china-664x1024.webp 664w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-documents-for-registering-a-foreign-invested-company-in-china-768x1184.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-documents-for-registering-a-foreign-invested-company-in-china-997x1536.webp 997w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-documents-for-registering-a-foreign-invested-company-in-china-97x150.webp 97w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> The procedure for registering a foreign-invested company in China is a clearly structured but multifaceted process, reflecting the balance between openness to international capital and the strategic regulation of the national economy. Successful navigation of this path requires from the investor not only meticulous document preparation but also a deep understanding of the logic of the Chinese legal field and administrative system. The key stages on this path remain: the strategic choice of the correct form of investment (WFOE, joint venture, representative office) aligned with long-term business goals; preliminary approval of a unique company name; obtaining all necessary approvals and licenses for regulated activities; and the correct preparation of statutory documents, primarily the Articles of Association, which must account for Chinese regulatory requirements. The final steps – obtaining the business license, registration with tax, customs, foreign exchange, and statistical authorities – legalize the activity but mark the beginning of the next critically important stage: operational compliance with continuously evolving legislation. In recent years, significant simplification and digitalization of many administrative procedures, lowering of barriers in a number of industries, and increased transparency have been observed. Nevertheless, complexities such as the correct classification of activities by GB/T codes (similar to OKVED), compliance with registered capital requirements, nuances of labor law, and cross-cultural communication barriers remain relevant. Therefore, an indispensable condition for minimizing risks and time costs is engaging qualified local specialists – lawyers, consultants, and accountants. Ultimately, company registration is not a bureaucratic finish line but a strategic starting point. A company that is registered competently and professionally, with a clear legal structure and an understanding of its obligations, lays a solid foundation for sustainable development, building trust with Chinese counterparties and authorities, and fully realizing the enormous potential of the Chinese market. Thus, the investment of time and resources at the establishment stage pays off with long-term stability and the ability to effectively focus on core business in China’s dynamic and competitive environment. Open a Company in China as a Foreign Investor <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Negative List eligibility check <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> FIE structure preparation <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Licensing and registration assistance Free consultation 5 Key Questions and Answers on the Legal Basis for Foreign-Invested Enterprises in China FAQ 1: How is the new system for regulating foreign investment after 2020 fundamentally different? On January 1, 2020, the new Foreign Investment Law of the People’s Republic of China (FIL) came into force, radically changing the legal landscape. It completely repealed the three old laws that regulated different forms of enterprises (equity joint ventures, cooperative joint ventures, and wholly foreign-owned enterprises). Now, unified rules apply to all companies with foreign participation—the general Company Law and the Partnership Law—that is, the same norms as for Chinese companies. This created a unified, transparent, and more protected environment for investors. FAQ 2: What is the “Negative List” and how does it work? The “Negative List for Market Access of Foreign Investment” is a transparent and regularly updated list of industries where exceptions to the general principle of national treatment (equal conditions with local companies) apply. The list is divided into two categories: prohibited (complete ban on foreign investment, e.g., in the defense industry) and restricted (investment is possible subject to conditions, e.g., a limit on the foreign capital share or a requirement for management). If your business sector is not on the list, the path to registration is maximally simplified. FAQ 3: Which organizational-legal form is the most popular and why? The most popular and flexible form is the Wholly Foreign-Owned Enterprise (WFOE). It provides the investor with full control over the business, offers better protection for intellectual property, and ensures full transparency of operations. A WFOE is suitable for most sectors: trade, services, manufacturing, R&D. Joint Ventures (JV) are typically created when it is explicitly required by the “Negative List” or is strategically necessary for accessing a local partner’s resources and market. FAQ 4: What are the key stages of registering a foreign-invested company? The standard process includes 8 sequential stages: Reserving a unique name with SAMR. Legalization of the registered address (execution and registration of a lease agreement for non-residential premises). Preparation and submission of the incorporation document package to SAMR. Obtaining the business license — the primary document confirming the creation of the legal entity. Production and registration of the company’s official seals. Opening a corporate bank account and depositing the first portion of the registered capital. Registration with the State Taxation Administration. Registration with social security and pension insurance funds. FAQ 5: Are there special procedures for large-scale projects, for example, building a factory? Yes, for “greenfield” projects (capital construction from scratch) the procedure is significantly more complex. In addition to standard company registration, it is necessary to undergo preliminary strategic approvals with the Development and Reform Commission (NDRC), as well as obtain a number of special permits before starting construction: urban planning approval, environmental impact assessment (EIA), and approval for occupational health, safety, and environmental protection (EHS). Only after this can a construction permit be obtained. For strictly regulated industries (finance, telecommunications), an “reverse order” often applies: first, approval from the industry regulator must be obtained, and only then can the company be registered with SAMR. Ask a question
How a Foreign Investor Can Obtain a Visa and Residence Permit in China as Founder and Director of Their Own Company
Step-by-Step Guide 2026: From Company Registration to an R Visa and Permanent Residence The Core Problem: “I established a WFOE in China. Now I want to come, become its General Director, manage the business, and live here with my family. But Ministry of Foreign Affairs staff say: you cannot work in your own firm—you are […]
Step-by-Step Guide 2026: From Company Registration to an R Visa and Permanent Residence The Core Problem: “I established a WFOE in China. Now I want to come, become its General Director, manage the business, and live here with my family. But Ministry of Foreign Affairs staff say: you cannot work in your own firm—you are the founder! Where is the logic in this?” Such inquiries are among the most frequent from foreign entrepreneurs. The answer: you can—but only on the condition of absolute legal clarity of the structure and adherence to 12 critical steps. Otherwise: permit denial, fines, deportation, entry ban. Introduction: A Unique Status – A Unique Procedure A foreign investor who is simultaneously the founder (shareholder) of a Chinese company and plans to hold a senior management position within it (e.g., General Director, Director, Board Member) faces a specific legal and administrative situation. Their status combines two key roles: business owner (investor/owner) and employee (hired worker). Chinese legislation clearly separates these concepts, and for lawful residence and work in China, it is necessary to meet the requirements for each of them. <img loading="lazy" decoding="async" width="1609" height="1533" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-_investor_-_worker_-in-the-eyes-of-chinese-authorities.webp" alt="" class="wp-image-23777" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-_investor_-_worker_-in-the-eyes-of-chinese-authorities.webp 1609w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-_investor_-_worker_-in-the-eyes-of-chinese-authorities-300x286.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-_investor_-_worker_-in-the-eyes-of-chinese-authorities-1024x976.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-_investor_-_worker_-in-the-eyes-of-chinese-authorities-768x732.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-_investor_-_worker_-in-the-eyes-of-chinese-authorities-1536x1463.webp 1536w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-_investor_-_worker_-in-the-eyes-of-chinese-authorities-157x150.webp 157w" sizes="auto, (max-width: 1609px) 100vw, 1609px" /> This article explains the complex process in detail: from company creation to obtaining a work visa and residence permit for a foreign investor/director. The focus is on Zhejiang Province, but the general principles apply throughout China, taking into account local specificities. <img loading="lazy" decoding="async" width="1190" height="796" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-the-essence.webp" alt="" class="wp-image-23792" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-the-essence.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-the-essence-300x201.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-the-essence-1024x685.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-the-essence-768x514.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-the-essence-224x150.webp 224w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Legal Framework The process is regulated by the following main regulatory acts: Law of the People’s Republic of China on Control of Entry and Exit of Foreigners: Article 41 establishes a mandatory rule: any foreigner working in China must obtain a work permit (工作许可) and a work-type residence permit (工作类居留证件). Work without these documents is illegal. Regulations on the Administration of Entry and Exit of Foreigners: Specify the procedures, particularly for Z (work) and R (for highly qualified specialists) visa categories. Regulations on the Employment of Foreigners in China: Detail requirements for employers and employees. Local Regulations: Such as the published Zhejiang Province Handbook, which specify local procedures within the framework of national legislation. Classification of Foreign Workers (A, B, C) in China The key factor determining the complexity and speed of the procedure is the classification of the foreigner into one of the following categories: “Top-tier, precise, cutting-edge, and scarce” talent. Foreign investors often fall into this category, especially with significant investment volumes, the introduction of advanced technologies, or management of companies in priority industries for China. Advantages: No restrictions on age, education, or experience. Simplified procedure (often entirely online), acceptance of commitment letters instead of certain individual documents (e.g., criminal record check), the permit is issued for up to 5 years. For an investor-director, classification as Category A is the best-case scenario. Category B (Professionals) Qualified specialists with a higher education degree and at least 2 years of work experience, meeting labor market needs. Age limit – usually up to 60 years. This is the most common category for hired directors and managers. The procedure is standard, requiring the submission of a full set of documents. Category C (Others) Unskilled or seasonal labor, strictly regulated by quotas. Not applicable to an investor-director. An investor-director, especially with a significant share in the registered capital or investments in the high-tech sector, has every chance of qualifying as Category A. The decision is made by the Bureau of Foreign Experts Affairs (formerly the State Administration of Foreign Experts Affairs) based on the submitted evidence (business plan, investment amount, patents, etc.). <img loading="lazy" decoding="async" width="1190" height="1928" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.the-only-correct-path-for-a-foreign-founder-planning-to-live-and-manage-in-china_.webp" alt="" class="wp-image-23807" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.the-only-correct-path-for-a-foreign-founder-planning-to-live-and-manage-in-china_.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.the-only-correct-path-for-a-foreign-founder-planning-to-live-and-manage-in-china_-185x300.webp 185w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.the-only-correct-path-for-a-foreign-founder-planning-to-live-and-manage-in-china_-632x1024.webp 632w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.the-only-correct-path-for-a-foreign-founder-planning-to-live-and-manage-in-china_-768x1244.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.the-only-correct-path-for-a-foreign-founder-planning-to-live-and-manage-in-china_-948x1536.webp 948w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.the-only-correct-path-for-a-foreign-founder-planning-to-live-and-manage-in-china_-93x150.webp 93w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Work Permit vs. Visa vs. Residence Permit in China The First Document: The Work Permit Notification — a document issued by the Chinese authorities (the Bureau of Foreign Experts Affairs). Based on it, a foreigner obtains a visa at a Chinese consulate abroad. This is not the permit, not a visa, and not even the card. It is an official document issued by the Bureau of Foreign Experts Affairs that confirms: “Yes, we have approved you as a worker, and your future employer (even if that is yourself) is permitted to hire you.” Without this notification — no visas. At all. Key Features: Generated electronically immediately after application approval, but the original paper copy, sent by mail, is required for the consulate. Valid for exactly 3 months from the date of issue — no more, no less. For Category A (highly qualified specialists), it is issued within 5 working days; for B and C — 10–15 days. Important: The notification text clearly states: “This notification is not a visa and cannot be used in place of a visa.” This is not a bureaucratic formality — it is a direct instruction that at this stage you do not yet have the right to enter. The Second Stage: Z or R Visa — The Border Pass. Issued by a Chinese consulate abroad. Allows entry into China for the purpose of work. Only after receiving the notification can you go to the consular section of a Chinese Embassy and apply for a work visa. Here, there are two options: Z Visa — the standard work visa. Suitable for B and C categories. It specifies an entry date and validity period (usually 30 or 90 days). But the most important thing is: when crossing the border, immigration officers stamp your passport with the entry date, and it is from this moment that the 30-day countdown begins, within which you must apply for the residence permit. R Visa — a visa for highly qualified specialists of Category A. This is not just a privilege but an acceleration tool: processing time is 2–4 days, the visa can be issued for 12–24 months, and, crucially, it grants the right to multiple entries at this stage — meaning you can enter, start the formalities, leave to handle other matters, and return without a new visa. Common mistake: Attempting to enter on an M visa (business) and “get sorted out inside.” This is directly prohibited by Article 41 of the “Law on Control of Entry and Exit”: “Foreigners in China must obtain a work permit and a work-type residence permit. Hiring individuals without these documents is prohibited.” Violation: deportation, fines up to ¥20,000, and inclusion on a “blacklist.” The Third Stage: The Work Permit (Card) — Your Professional Status After entry, you have 15 days to submit documents to obtain the physical Work Permit Card — yellow, with a chip and QR code. It is this card that confirms your belonging to Category A, B, or C, specifies the employer, and the validity period. This document is the foundation for everything else: Without it, a bank will refuse to open an account (even if you are the director and founder); Without it, you cannot sign a long-term lease agreement; Without it, a school will not admit your child to an international class. And yes — this card does not grant the right of residence. It is merely proof that you have the right to work. You can only reside after the next step. The Fourth and Main Stage: The Work-Type Residence Permit — Your Legal Place in China Only after receiving the Work Permit Card do you apply to the Public Security Bureau (PSB, 派出所) for the work-type residence permit. This is not a separate document, but a passport insert, resembling a visa, but with two critical differences: It is valid for up to 5 years (for Category A — contract-dependent, up to 5 years); It grants the right to multiple entry and exit without obtaining new visas. It is this document that makes you a resident, not a temporary guest. With it, you can: Purchase real estate (in some cities without the 5-year waiting period); Obtain a Chinese driver’s license; Participate in state digital systems (Health Code, Alipay Health, electronic museum tickets, etc.). Table: Work Permit vs. Visa vs. Residence Permit in China Document Issued By Where Valid Purpose Validity Period Key Features 1. Work Permit Notification Bureau of Foreign Experts Affairs (SAFEA/Provincial Bureau) Outside China (at the consulate) Confirms you are approved as a worker in China. Without it — no visa. 3 months from issue date Issued online as PDF + original by mail. For Category A — 5 work days, for B/C — 10–15. Does not grant entry or work rights! 2. Work Visa: Z-Visa or R-Visa (for talents) Consular Department of Chinese Embassy/Consulate-General For entry into China Grants the right to cross the border for employment upon invitation. Specified in visa (usually 30–90 days for single entry) Z-Visa: Standard for B and C categories. R-Visa: Only for Category A. Longer validity, priority processing. Upon entry, border control stamps the date starting the 30-day countdown to apply for the Residence Permit. 3. Work Permit (Card) Same Experts Bureau (SAFEA) Within China (after entry) The primary document confirming your status as a foreign worker for tax authorities, banks, and employer. Up to 5 years (5 years max only for Category A with salary ≥ ¥500k/year) Physical yellow card with a chip. Is not a Residence Permit! Without it — rejection of Residence Permit application. Specifies category (A/B/C), employer, validity. 4. Work-Type Residence Permit Public Security Bureau (PSB) In China (place of residence/registration) Grants the right to legally reside and enter/exit multiple times without a new visa. Up to 5 years (matches the Work Permit validity) Format: passport insert with a chip. Enables: opening a bank account, renting property, obtaining a driver’s license, enrolling a child in an international school. Invalidated if absent from China for >180 consecutive days. Step-by-Step Action Plan for the Investor-Director Step 0: Company Preparation and Registration – Creating the Legal Basis for Status A At this stage, it’s important not just to register a company, but to create a structure that automatically meets the criteria for an “investor-entrepreneur” in Category A. Key Actions: Choice of Structure WFOE (Wholly Foreign-Owned Enterprise) – the optimal option for a foreign founder planning to become the General Director. Joint Venture is not recommended: The division of authority makes it difficult to prove the founder’s “key role” and increases the risk of rejection for Class A. Registered Capital: Not a Minimum, but a Strategy Chinese law indeed does not set a minimum amount and allows capital to be contributed over 5 years. However, to qualify for Class A under the “investor-entrepreneur” criterion, demonstration of reasonable investments is required, showing intent and covering initial startup costs. Even if you contribute only a part initially, but specify a justified target capital in the articles of association and confirm the intention with a bank statement for the corporate account opening — this is sufficient to apply for Class A. Registration with SAMR (State Administration for Market Regulation) In the Articles of Association, it is mandatory to state: “The founder [Full Name] is appointed as the General Director of the company for an indefinite term.” The Business License must indicate industry codes corresponding to the “Province’s Priority Industries Catalogue” — this critically influences automatic qualification as A. Opening a Corporate Bank Account Do this within 30 days of registration – otherwise SAMR may initiate an inspection. The bank will request the business license, company seal, and the director’s passport – ensure you are already registered as the General Director. Tax and (if necessary) Customs Registration Mandatory: Registration with the tax authorities (within 30 days). Customs registration (inclusion in the Customs Registration List) – only if you plan foreign trade activities. For Class A, it is not mandatory but desirable – confirms the “significance of operations.” Important Clarification: Successful company registration is not the end, but the beginning of the process of confirming investor status. Already at this stage, start collecting evidence for the Category A dossier: Screenshots from the National Enterprise Credit Information System with your name as director, Office lease agreement (SAMR requirement — a real address), First bank transactions (to confirm “activity”). Only this way do you lay the foundation for a quick transition to Step 1 – applying for the Category A work permit. <img loading="lazy" decoding="async" width="1190" height="1071" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-you-are-the-sole-founder-simultaneously-the-general-director-in-the-registration-documents.webp" alt="" class="wp-image-23822" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-you-are-the-sole-founder-simultaneously-the-general-director-in-the-registration-documents.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-you-are-the-sole-founder-simultaneously-the-general-director-in-the-registration-documents-300x270.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-you-are-the-sole-founder-simultaneously-the-general-director-in-the-registration-documents-1024x922.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-you-are-the-sole-founder-simultaneously-the-general-director-in-the-registration-documents-768x691.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-you-are-the-sole-founder-simultaneously-the-general-director-in-the-registration-documents-167x150.webp 167w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Step 1: Employer Registration in the System – Creating Your Company’s “Digital Passport” for Hiring Foreigners Before applying for a work permit for yourself, you must register not yourself, but your company as an employer in the system. This is akin to “accreditation” – the state first checks the organization and only then allows it to hire foreigners. How to do this in practice: Go to the “Management and Service System for Foreigners Working in China” platform (外国人来华工作管理服务系统) → select “Legal Entity” (法人登录). Note: A personal account (e.g., for your own visa application) is created later – at this stage you are acting on behalf of the company. Upload 6 mandatory documents: Employer Registration Form – filled out online, printed, stamped with the company seal, and signed (by the head). Business License – in PDF format, with the Unified Social Credit Code (USCC) clearly visible. Passport of the Company Head – if you are the founder and General Director, this is your passport (page with photo and data). Passport of the Authorized Representative – can be the same person (you), but it’s a formally separate role. Seal Power of Attorney (if you are using not the main company seal, but, for example, an HR seal). Commitment Letter for Work Permit Application (外国人来华工作许可申请承诺书) – with your signature as head and the company seal. The key difficulty for a foreign founder: There is no field in the system for “I am hiring myself.” But you are not violating the law – and here is how to correctly formalize it: In the “Responsible Person” field, enter yourself (name, passport, contacts). In the “Contact Person for Hiring Matters” field, also enter yourself – this is technically acceptable. In the “Planned Hiring” section, when filling it out, specify: “Position: General Director. Category: A. Basis: Section 5 of the Classification – ‘Investor and Key Manager.'” Timeline and Result: After uploading the documents, the system conducts an automatic check of the USCC and a verification against the SAMR registry. If there are no errors – approval within 1–3 working days. You receive the status “Employer Confirmed” and access to the function “Apply for Work Permit.” Important: What NOT to do Do NOT register the company through a third party (e.g., a Chinese nominee) if you plan to become the director. The system will link the company’s USCC to your passport – and in case of a mismatch, will request explanations. Do NOT use low-resolution scans: the seal (must be fully legible) and the USCC number are especially critical. Do NOT skip the hiring commitment letter – without it, the system blocks the transition to the next step. After completing this stage, your company becomes a “trusted employer” in the eyes of SAFEA. Step 2: Determining the Worker Category (A) and Preparing the Dossier Even before applying, it is necessary to prepare evidence for classification as Category A. The guide indicates that Category A includes, among others, “international entrepreneurs” and individuals meeting the criteria of the points system for high-level talents. Evidence of Investment: Show the seriousness of your intentions and financial solvency. For example, a shareholder’s bank statement: This is a basic but essential document. Audit Report (if available): If the company has been operating for some time, an independent auditor’s report confirming financial health and implementation of the investment plan is an indisputable argument in your favor. It shows that you have not simply “registered and forgotten,” but are conducting transparent and responsible activities. Combine these documents into a narrative: “We registered the company with registered capital X, confirmed by statement Y. These funds are allocated for equipment purchase and personnel hiring, as described in our business plan. Our first audit report (if available) demonstrates stable development.” Goal: To transform numbers into proof of reliability and long-term plans. Business Plan: Your main “marketing” document for the authorities. The business plan should be written not only for investors but specifically for the officials of the Bureau of Foreign Experts Affairs (SAFEA). Emphasize alignment with national and local priorities (“Made in China 2025”, development of the digital economy, “green” technologies actively promoted in Zhejiang). Do not simply list that you use SaaS. Describe how your technology (e.g., a proprietary AI-based platform, a unique production process) fills a gap in the local market or surpasses existing solutions. Reference Chinese or international standards. Job Creation: Indicate not only the number of planned positions (manager, developer) but also their quality. Emphasize that you will hire and train local Chinese specialists, transferring knowledge and expertise to them. This is extremely important for the authorities. Export Potential: Show how your company in Zhejiang will contribute to the export of Chinese goods/services or, conversely, attract advanced foreign practices. An export plan is a powerful argument for gaining support. Structure the business plan with clearly highlighted sections that directly address the criteria of “high-end, precise, and advanced.” The goal is to present your company not as just another foreign firm, but as a strategic partner in the development of the region. Resume (CV): Confirm your leadership capital and expertise. The resume should reflect not just a chronology of employment, but a history of success and leadership. Emphasis on: • Management experience (number of subordinates, size of managed budget). • Experience in launching projects “from scratch” or expanding a business into new markets (direct analogy with your current task in China). • Industry expertise aligned with the direction of your Chinese company. Diplomas and Certificates: Diplomas and professional certificates must be legalized (apostille or consular legalization) and accompanied by a notarized translation into Chinese. Your resume and diplomas should paint a portrait of an international entrepreneur and expert whose knowledge is critically necessary for the success of this enterprise in China. Goal: Prove that your personal qualification, and not just your capital, is the key asset of the company. Patents, Certificates: Evidence of innovation as a competitive advantage. This is one of the strongest arguments for Category A. Patents: Provide copies of international or national patents where you are listed as the inventor or rights holder. Support them with a description of how this intellectual property will be used or adapted in the Chinese project. Software certificates, technical attestations, awards: Any documents confirming the uniqueness of your product or international recognition of your professional merits (industry awards, grants). Link your innovations to the points in the business plan. Show the chain: “I have a patent for technology X. We will implement it at our factory in Zhejiang. This will give us a market advantage and allow us to create high-tech jobs.” Goal: To move innovations from the realm of abstraction into a concrete plan for economic impact. Company Ownership Documents: Legitimization of the dual status. • Shareholder Register Extract: This document, obtained from the Chinese Market Regulation Administration (SAMR), legally proves your ownership right. It removes any question of why the company is hiring you—because you are its owner and key strategic decision-maker. • Company Charter: It will also list the composition of the founders and the size of shares. Submit these documents together with the employment contract. This creates a complete and transparent picture: “I, as the owner (Document A), hire myself for the position of General Director (Document B) to implement our investment plan (Document C).” Goal: To eliminate any potential suspicion of sham employment and show the complete alignment of your legal status with business logic. Final Tactic for Step 2: • Not disjointed, but systematic: Don’t just send a folder of documents. Create a cover letter or a brief explanatory note (in Chinese), where you connect all elements of the dossier into a single convincing narrative through key points: “Based on proven investments, innovation potential, and personal experience, I, as the owner and key manager of [Company Name], plan to implement a project that will contribute to the development of [e.g., the digital economy sector] in Zhejiang, creating jobs and transferring technology. This meets the criteria for a foreign high-level talent (Category A).” • Translation quality: All documents must be translated into Chinese by a qualified translator, and key points (resume, business plan) should be edited by a native speaker for flawless understanding. Category A is a status that must be earned in the eyes of the official through documents. Your dossier is your weapon in this fight for privileged status. The more convincing, complete, and strategically precise it is, the higher the chances of success and obtaining all the advantages associated with Category A. However, an important note: it must be a true story, not a fairy tale! <img loading="lazy" decoding="async" width="1190" height="2281" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-a-foreign-category-a-entrepreneur_.webp" alt="" class="wp-image-23837" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-a-foreign-category-a-entrepreneur_.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-a-foreign-category-a-entrepreneur_-157x300.webp 157w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-a-foreign-category-a-entrepreneur_-534x1024.webp 534w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-a-foreign-category-a-entrepreneur_-768x1472.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-a-foreign-category-a-entrepreneur_-801x1536.webp 801w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-a-foreign-category-a-entrepreneur_-1068x2048.webp 1068w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-a-foreign-category-a-entrepreneur_-78x150.webp 78w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Get a China Investor Visa Without Rejections <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Eligibility assessment for residence permit <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Complete documentation preparation <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> End-to-end support until permit issuance Free consultation Step 3: Applying for the “Work Permit Notification” This stage represents the formal online initiation of the process to legalize your status. The correctly chosen route and an impeccably prepared digital document package determine not only the timeline but the overall success of the endeavor. The procedure is legally divided into two fundamentally different paths, the choice between which depends on the current geographical location and visa status of the foreign citizen. Strategic Choice of Procedure: Two Branches of Development Standard (Consular) Route: The traditional path, involving visa issuance outside China. Requires exiting the country and is mandatory for individuals located abroad or not meeting the criteria for domestic processing. Simplified (Domestic) Route: A special procedure for individuals already legally in China on other types of visas. It is an exclusive privilege that avoids the need for consular visa issuance and should be used at the first opportunity. <img loading="lazy" decoding="async" width="1190" height="1565" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-two-paths-to-obtain-the-_work-permit-notification_-in-china.webp" alt="" class="wp-image-23852" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-two-paths-to-obtain-the-_work-permit-notification_-in-china.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-two-paths-to-obtain-the-_work-permit-notification_-in-china-228x300.webp 228w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-two-paths-to-obtain-the-_work-permit-notification_-in-china-779x1024.webp 779w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-two-paths-to-obtain-the-_work-permit-notification_-in-china-768x1010.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-two-paths-to-obtain-the-_work-permit-notification_-in-china-1168x1536.webp 1168w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-two-paths-to-obtain-the-_work-permit-notification_-in-china-114x150.webp 114w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Option I: Standard (Consular) Application Route for Individuals Outside China This process is relevant if the foreign investor-director is outside China. Phase 1: Formation and Submission of the Digital Dossier via the Integrated System The employer (your Chinese company) logs into the “System for the Management of Foreigners’ Work” and initiates a new application. Each attached document must be scanned in high resolution and correctly renamed. Key components of the dossier requiring special attention from the investor: Online Application Form: Generated by the system after filling out web forms. Key Point: The form is printed, personally signed by the foreign applicant, then scanned together with the official company seal of the employer. This symbolizes bilateral consent. Proof of Professional Experience: For Category A applicants falling under the criteria of “leading scientists” or “leaders in the scientific and technical field,” this point is handled through a written commitment mechanism. However, for an investor-manager, even using this benefit, it is strategically correct to attach a structured resume (CV) with referee contacts. For Category B, legalized certificates from previous employers are required. Higher Education Document: For Category A applicants, the commitment system also applies. Nevertheless, providing a notarized and apostilled copy of the diploma with a professional Chinese translation strengthens the applicant’s position and eliminates the need to provide the document later. Certificate of No Criminal Record: One of the most complex documents. Must be issued by competent authorities of the country of citizenship or permanent residency (residence >1 year) and legalized by a Chinese consulate or apostilled. For Category A, at the notification request stage, submission of a commitment is permissible, which is a fundamental simplification. For Categories B and C, the original with legalization is mandatory. Employment Contract or Appointment Document: The central document for the investor-director, requiring meticulous precision. Since the contracting parties are the legal entity (company) and the natural person (its own director-founder), the text must flawlessly reflect this duality. Mandatory sections: Clearly formulated job functions, corresponding to the claimed management level. Place of work (full company registration address). Salary (base salary) in RMB/CNY, matching or exceeding the regional average level (data from the local statistics bureau). This item cannot be contractually reduced. Precise contract duration. Complete details of both parties, the foreigner’s handwritten signature, and the impression of the Chinese company’s seal. A detailed job description is attached to the contract. Valid Passport: Scan of the biographical data page. Validity must exceed 6 months from the application date. Digital Photograph: Strict requirements: light background, size 40-120 KB, dimensions from 354×472 to 420×560 pixels. Health Examination: Can be postponed and presented at the stage of obtaining the plastic permit card inside China. Submission of a temporary commitment is allowed. Documentation for Accompanying Dependents: If necessary, include spouse and minor children in the application immediately by preparing copies of their passports, (legalized) marriage/birth certificates, and photographs. <img loading="lazy" decoding="async" width="1190" height="1883" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-key-documents-for-obtaining-the-work-permit-notification-in-china.webp" alt="" class="wp-image-23867" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-key-documents-for-obtaining-the-work-permit-notification-in-china.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-key-documents-for-obtaining-the-work-permit-notification-in-china-190x300.webp 190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-key-documents-for-obtaining-the-work-permit-notification-in-china-647x1024.webp 647w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-key-documents-for-obtaining-the-work-permit-notification-in-china-768x1215.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-key-documents-for-obtaining-the-work-permit-notification-in-china-971x1536.webp 971w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-key-documents-for-obtaining-the-work-permit-notification-in-china-95x150.webp 95w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Phase 2: Interdepartmental Verification and Approval After online submission of the document package, the responsible territorial authority (e.g., the Bureau of Foreign Experts Affairs of Zhejiang Province) conducts a preliminary audit within 5 working days. In case of incompleteness or non-compliance, the applicant receives a reasoned list of comments for correction. If formal criteria are met, the application is assigned the status “accepted for review.” Phase 3: Decision Making and Notification Generation At the substantive review stage, lasting up to 10 working days, specialists analyze the essence of the provided data. If positive, the official form “Notification of Work Permit for Foreigner in the PRC (Work Period Over 90 Days)” becomes available for download and printing in the employer’s personal account. This document has a limited validity period (usually 3 months) and serves solely as the basis for applying for a work visa. Option II: Simplified (Domestic) Application Route for Individuals Already in China This procedure is optimal for an investor if they have already entered China on another permitted basis (e.g., business visa M, tourist visa L). It allows bypassing the stage of obtaining the notification and visa abroad, by directly applying for the plastic permit card. Critical Conditions for Qualification: Status as a foreign highly qualified specialist (Category A) with a valid visa of any type except a work visa. Eligibility for the preferential policies of innovation pilot zones or free trade zones where the enterprise is registered. The fact of an intra-corporate transfer within an international group of companies. Other special circumstances deemed relevant by the regulatory authority. Practical Implementation: The document set is identical to the standard one, with a few tactical exceptions: Instead of a criminal record certificate from abroad, a similar certificate obtained within China (if the foreigner has lived in the country for over a year) can be submitted, or the right to a commitment (for Category A) can be used. The package must include scan copies of passport pages with the valid visa and the last entry stamp, as well as documentary justification for the right to apply domestically (e.g., an extract confirming the company’s registration in a free trade zone). Processing timelines are similar, but the result of a successful review is a direct transition to the production of the plastic “Work Permit” card, bypassing the “Notification” stage. For an investor-director whose business often requires constant presence in the initial phase, the simplified route is a priority. Even at the planning stage of the first entry into China for company registration, it is worth choosing a visa category (M, F) that will later allow using the domestic procedure, saving at least 1-2 months and avoiding a mandatory exit. <img loading="lazy" decoding="async" width="1190" height="1479" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-simplified-route-for-obtaining-the-work-permit-notification-in-china.webp" alt="" class="wp-image-23882" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-simplified-route-for-obtaining-the-work-permit-notification-in-china.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-simplified-route-for-obtaining-the-work-permit-notification-in-china-241x300.webp 241w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-simplified-route-for-obtaining-the-work-permit-notification-in-china-824x1024.webp 824w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-simplified-route-for-obtaining-the-work-permit-notification-in-china-768x955.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-simplified-route-for-obtaining-the-work-permit-notification-in-china-121x150.webp 121w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Step 4: Obtaining a Work Visa (Category Z or R) Outside China This stage is the final one in the preliminary procedure for legalizing the work activity of a foreign specialist in China. It is carried out exclusively abroad, in the territory of the applicant’s country of citizenship or country of permanent legal residence. Standard Document Submission Procedure: Choosing the Submission Institution: The applicant must apply in person to a diplomatic mission of China (Consular Section of an Embassy or Consulate-General) or an accredited Chinese visa center in the relevant country. Preparing the Document Package: The basic package includes: A passport, valid for at least 6 months at the time of application and with blank pages. Original and copy of the “Notification Letter of Work Permit for Foreigners”, issued by the authorized Chinese bureau for foreign specialists affairs. This is the key document confirming preliminary work approval. A completed and signed visa application form V.2013 (application for a Chinese visa), usually with an attached color photograph meeting the required specifications (light background, size 48mm x 33mm). Proof of legal stay in the country of application (if applying outside the country of citizenship). This can be a residence permit, long-term visa, or similar document. Additional documents as required by the specific consular institution (e.g., proof of previous work experience, copies of diplomas). Important: Requirements may vary slightly between consulates, so it is necessary to check the current list on their official websites in advance. Strategic Visa Category Choice: Z or R Work Visa Category Z (Z Visa) – This is the basic and most common visa, intended for the majority of foreign workers invited for employment in China. It is issued based on the Notification and serves solely for the initial entry into China for the purpose of subsequently obtaining a residence permit (Residence Permit). Work Visa Category R (R Visa) – A visa for highly qualified foreign talents belonging to Category A according to the national classification. Its application is recommended and prioritized for such specialists. <img loading="lazy" decoding="async" width="1190" height="1977" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-visa-choice_-z-vs-r-a-strategic-decision.webp" alt="" class="wp-image-23897" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-visa-choice_-z-vs-r-a-strategic-decision.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-visa-choice_-z-vs-r-a-strategic-decision-181x300.webp 181w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-visa-choice_-z-vs-r-a-strategic-decision-616x1024.webp 616w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-visa-choice_-z-vs-r-a-strategic-decision-768x1276.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-visa-choice_-z-vs-r-a-strategic-decision-925x1536.webp 925w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-visa-choice_-z-vs-r-a-strategic-decision-90x150.webp 90w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Key Advantages of the R Visa for Further Processing: Extended Initial Stay Period: The R visa is often issued for up to 180 days with the right of single, double, or multiple entry. This is significantly longer than the standard Z visa period (usually 30 days) and provides a comfortable time buffer for all administrative procedures upon arrival. Priority and Expedited Service: Holders of R visas and their family members (applying for S1/S2 visas) often receive priority when submitting documents and having applications processed, both at consulates and at Public Security Bureau organs in China. Simplified Transition to Long-Term Residency: The status confirmed by the R visa is the basis for obtaining a Residence Permit for up to 5 years (the maximum possible), which minimizes the need for annual document renewals. Positive Signal for Future Interactions: Possession of an R visa confirms the officially recognized high status of the specialist, which can simplify further visa procedures, interactions with banks, government, and other institutions. After receiving the Work Permit Notification, it is strongly recommended for a Category A foreign specialist to initiate the application specifically for the Category R work visa at the Chinese consular institution, providing all necessary documents. This is a strategically correct step that provides significant procedural advantages at the next stage – obtaining the residence permit in China after entering the country. <img loading="lazy" decoding="async" width="1190" height="2236" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-work-visa-application-only-outside-china.webp" alt="" class="wp-image-23912" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-work-visa-application-only-outside-china.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-work-visa-application-only-outside-china-160x300.webp 160w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-work-visa-application-only-outside-china-545x1024.webp 545w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-work-visa-application-only-outside-china-768x1443.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-work-visa-application-only-outside-china-817x1536.webp 817w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-work-visa-application-only-outside-china-1090x2048.webp 1090w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-work-visa-application-only-outside-china-80x150.webp 80w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Step 5: Entry into China and Receiving the Plastic “Foreigner’s Work Permit” Card This stage is the final one and is implemented exclusively within China. Upon arrival with a valid visa (Z or R), the foreign specialist and their employer must, within strictly established deadlines, complete the procedure for legalizing work activity by obtaining the personal plastic “Foreigner’s Work Permit Card”. This document is the primary proof of the right to work and legal stay related to employment. Step-by-step procedure after entry into China: 1. Undergoing a Medical Examination (Top Priority) Within the shortest possible time after arrival, the foreigner must undergo a full medical examination at a medical institution accredited by Chinese health authorities for visa and permit purposes (usually specialized departments in large international hospitals or clinics). The result is the official “Foreigner Physical Examination Report”, typically valid for 6 months. Without this document, applying for the card is impossible. 2. Submission of the Card Application by the Employer (Within the Legally Established Deadline) Within 15 calendar days from the foreigner’s entry date indicated in the border crossing stamp, the employer is obligated to submit a complete set of documents to the National Service System for Foreign Experts (Foreign Expert Service System or another approved platform). The responsibility for submission lies entirely with the employer. The purpose of the submission is to obtain a decision on issuing the physical card based on the already approved Notification and the newly provided originals. <img loading="lazy" decoding="async" width="1190" height="1930" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/11.-entry-and-receipt-of-the-work-permit-card.webp" alt="" class="wp-image-23927" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/11.-entry-and-receipt-of-the-work-permit-card.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/11.-entry-and-receipt-of-the-work-permit-card-185x300.webp 185w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/11.-entry-and-receipt-of-the-work-permit-card-631x1024.webp 631w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/11.-entry-and-receipt-of-the-work-permit-card-768x1246.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/11.-entry-and-receipt-of-the-work-permit-card-947x1536.webp 947w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/11.-entry-and-receipt-of-the-work-permit-card-92x150.webp 92w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> 3. Preparation and Submission of the Final Document Package For submission to the authorized local bureau for foreign experts affairs (often at a local branch of the Ministry of Science and Technology or the Ministry of Human Resources and Social Security), a package is prepared, including: Original and copy of the passport with the valid visa (Z/R) and the stamp of the last entry into China. Original and copy of the medical examination report obtained from an accredited Chinese hospital. Original and copy of the employment contract signed by both parties (if not provided at the Notification stage). The originals of all documents for which legalized or apostilled certified translations were used during the initial application (e.g., criminal record certificate with notarized Chinese translation, education certificates, work experience certificates). Presenting the originals is mandatory for the final verification. A photograph meeting the required specifications (usually white background). The completed official application form. <img loading="lazy" decoding="async" width="1190" height="1273" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/12.-dokumenty-neobhodimye-dlya-polucheniya-karty-razresheniya-na-rabotu-v-kitae-2.webp" alt="" class="wp-image-23942" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/12.-dokumenty-neobhodimye-dlya-polucheniya-karty-razresheniya-na-rabotu-v-kitae-2.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/12.-dokumenty-neobhodimye-dlya-polucheniya-karty-razresheniya-na-rabotu-v-kitae-2-280x300.webp 280w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/12.-dokumenty-neobhodimye-dlya-polucheniya-karty-razresheniya-na-rabotu-v-kitae-2-957x1024.webp 957w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/12.-dokumenty-neobhodimye-dlya-polucheniya-karty-razresheniya-na-rabotu-v-kitae-2-768x822.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/12.-dokumenty-neobhodimye-dlya-polucheniya-karty-razresheniya-na-rabotu-v-kitae-2-140x150.webp 140w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> 4. Review of the Application and Receipt of the Card After successful submission of the documents, the authorized body conducts the final verification. The review and decision-making period is usually up to 10 working days from receipt of the complete package. If positive, the personal plastic “Foreigner’s Work Permit Card” is produced. It contains photo, personal data, employer data, category (A, B, C), and validity period. The card is issued in person to the foreign specialist or their authorized representative (with a notarized power of attorney) at the service window of the authorized body (for specific addresses and working hours, refer to Appendix 15 of the Guide or the official websites of local authorities). Crucial Significance: From the moment of receiving this card, the foreigner’s status is fully legalized. The card is the primary document confirming the right to work and simultaneously serves as the basis for the next mandatory step – applying for the “Residence Permit” at the Exit-Entry Administration of the local Public Security Bureau (PSB), which secures the right to multiple entry-exit and long-term residence. <img loading="lazy" decoding="async" width="1190" height="1595" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/13.-the-plastic-_work-permit_-card-in-china.webp" alt="" class="wp-image-23957" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/13.-the-plastic-_work-permit_-card-in-china.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/13.-the-plastic-_work-permit_-card-in-china-224x300.webp 224w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/13.-the-plastic-_work-permit_-card-in-china-764x1024.webp 764w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/13.-the-plastic-_work-permit_-card-in-china-768x1029.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/13.-the-plastic-_work-permit_-card-in-china-1146x1536.webp 1146w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/13.-the-plastic-_work-permit_-card-in-china-112x150.webp 112w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Step 6: Applying for a Residence Permit in China for Foreign Workers This stage is the concluding administrative procedure that legalizes the long-term stay of a foreign specialist in China based on work activity. After receiving the plastic “Work Permit” card, it is necessary to apply for a Residence Permit within the legally established timeframe. The Residence Permit replaces the initial visa (Z/R) and serves as the primary document for residence and multiple border crossings. Key Requirement and Deadlines The application for a Residence Permit must be made within 30 days of the entry date into China indicated in the passport stamp. It is important to note that the basis for the application is the already obtained “Work Permit” (plastic card). Therefore, Steps 5 and 6 must be completed sequentially and promptly after arrival. <img loading="lazy" decoding="async" width="1190" height="2039" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/14.-residence-permit-in-china-the-final-leg-of-legalization.webp" alt="" class="wp-image-23972" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/14.-residence-permit-in-china-the-final-leg-of-legalization.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/14.-residence-permit-in-china-the-final-leg-of-legalization-175x300.webp 175w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/14.-residence-permit-in-china-the-final-leg-of-legalization-598x1024.webp 598w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/14.-residence-permit-in-china-the-final-leg-of-legalization-768x1316.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/14.-residence-permit-in-china-the-final-leg-of-legalization-896x1536.webp 896w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/14.-residence-permit-in-china-the-final-leg-of-legalization-88x150.webp 88w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Document Submission Procedure The applicant is obliged to appear in person at the Exit-Entry Administration of the local Public Security Bureau (PSB) serving the area of their actual residence. Mandatory Document Package Original and copy of the passport, as well as the pages with the valid visa (Z/R) and the stamp of the last entry. Original and copy of the plastic “Foreigner’s Work Permit Card”. Completed and signed Residence Permit application form (provided on-site or can be downloaded in advance from the authority’s official website). Document confirming temporary residence registration (Temporary Residence Registration Form). This document (obtained at the local police station or through the landlord) is mandatory and must be obtained within 24 hours of moving in. Without it, submitting the application is impossible. One color photograph meeting the required specifications (size and background to be confirmed at the specific office). Additional documents upon the inspector’s request (e.g., the original employment contract or medical examination report may be requested). <img loading="lazy" decoding="async" width="1190" height="2061" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/15.-mandatory-document-package.webp" alt="" class="wp-image-23987" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/15.-mandatory-document-package.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/15.-mandatory-document-package-173x300.webp 173w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/15.-mandatory-document-package-591x1024.webp 591w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/15.-mandatory-document-package-768x1330.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/15.-mandatory-document-package-887x1536.webp 887w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/15.-mandatory-document-package-1182x2048.webp 1182w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/15.-mandatory-document-package-87x150.webp 87w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Result and Benefits After processing the application (timelines vary, typically 7 to 15 working days), a residence permit sticker page is affixed to the applicant’s passport. This document provides the following key advantages: The right to multiple entry and exit from China without the need to apply for a new visa each time. The right to continuous residence within China for its entire validity period. The validity period of the Residence Permit is directly tied to the validity of the “Work Permit”. For most categories, it is issued for 1 year with annual renewal. For highly qualified specialists of Category A, the maximum validity can be up to 5 years, which significantly reduces the administrative burden. Important Note: The Residence Permit is the final link in the legalization chain. Its possession definitively confirms that the foreign worker’s status complies with all requirements of Chinese legislation. Subsequently, it is only necessary to timely renew both documents – the “Work Permit” and the Residence Permit – until the end of the employment contract. <img loading="lazy" decoding="async" width="1190" height="1542" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/16.-residence-permit-in-china-key-points-to-remember.webp" alt="" class="wp-image-24002" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/16.-residence-permit-in-china-key-points-to-remember.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/16.-residence-permit-in-china-key-points-to-remember-232x300.webp 232w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/16.-residence-permit-in-china-key-points-to-remember-790x1024.webp 790w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/16.-residence-permit-in-china-key-points-to-remember-768x995.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/16.-residence-permit-in-china-key-points-to-remember-1185x1536.webp 1185w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/16.-residence-permit-in-china-key-points-to-remember-116x150.webp 116w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Step 7: Subsequent Legal and Administrative Obligations After Receiving the Residence Permit and Work Permit After the successful completion of the main legalization stages and obtaining the plastic “Work Permit” card and “Residence Permit” in the passport, a number of permanent obligations are imposed on the foreign specialist and their employer. Compliance with these is critically important for maintaining legal status and unimpeded activity in China. 1. Tax Registration and Residency Status Within 30 days of receiving the Residence Permit, the foreign worker is obligated to register as a taxpayer with the State Taxation Administration (STA) at their place of residence. The specialist is assigned a Taxpayer Identification Number (TIN) for non-residents, which is used for income declaration and tax payment. Important to note: According to the Tax Code of China, a foreigner acquires tax resident status if they spend 183 or more days on Chinese territory within one calendar year. In this case, they have an obligation to declare and pay taxes on all their worldwide income. Tax non-residents are only subject to taxation on income received from Chinese sources. 2. Mandatory Social Insurance The employer is legally obligated to register the foreign employee in the national social insurance system (pension, medical, unemployment, work injury, maternity) and pay the established contributions monthly (a portion of which is also withheld from the employee’s salary). Special feature for Category A: For highly qualified foreign specialists classified as Category A, based on mutual intergovernmental agreements or internal regulations, participation in the state pension and medical programs may be replaced by having comprehensive commercial medical and pension insurance of international standard. This replacement is carried out strictly based on a prior Letter of Commitment, submitted by the employer during the “Work Permit” application stage, and must be confirmed by the corresponding insurance policies. 3. Document Renewal The renewal procedure must be initiated by the employer no later than 30 calendar days before the expiration of the current “Work Permit.” Simplified procedure: Unlike the initial application, the renewal process for specialists of Categories A and B is typically significantly simpler. It is often conducted entirely online via the service platform and does not require re-submission of the full set of documents (e.g., legalized diplomas or certificates). Updated information regarding the employment contract and data on tax and contribution payments are required. Within 30 days of obtaining the new “Work Permit,” the Residence Permit must also be renewed at the PSB office by presenting the updated card. 4. Obligation to Notify of Changes The foreign specialist and employer are obligated to immediately notify the relevant authorities (foreign experts bureau and PSB) of the following changes: Change of workplace or employer (requires complete re-application of all documents). Change of position or workplace within the same company. Change of residential address (with subsequent re-registration at the police). Loss or theft of passport, residence permit, or work permit. To ensure full compliance with the rapidly changing Chinese legislation in the fields of migration, labor, and tax law, it is strongly recommended for both the employer and the foreign employee to maintain regular contact with specialized lawyers or consultants. <img loading="lazy" decoding="async" width="897" height="2560" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/17.-obligations-after-receiving-the-work-permit-and-residence-permit-in-china-scaled.webp" alt="" class="wp-image-24017" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/17.-obligations-after-receiving-the-work-permit-and-residence-permit-in-china-scaled.webp 897w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/17.-obligations-after-receiving-the-work-permit-and-residence-permit-in-china-105x300.webp 105w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/17.-obligations-after-receiving-the-work-permit-and-residence-permit-in-china-359x1024.webp 359w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/17.-obligations-after-receiving-the-work-permit-and-residence-permit-in-china-768x2192.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/17.-obligations-after-receiving-the-work-permit-and-residence-permit-in-china-538x1536.webp 538w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/17.-obligations-after-receiving-the-work-permit-and-residence-permit-in-china-718x2048.webp 718w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/17.-obligations-after-receiving-the-work-permit-and-residence-permit-in-china-53x150.webp 53w" sizes="auto, (max-width: 897px) 100vw, 897px" /> Conclusion The process of obtaining permits for a foreign investor who combines the functions of founder (shareholder) and sole executive body (e.g., General Director) in China is a complex but fully achievable administrative procedure. Its success is based on three key principles: Correct Determination of Legal Status. It is critically important to legally distinguish and documentarily confirm the two statuses of the individual: as a foreign investor (in relation to the company) and as a hired manager (in relation to the work position). This separation is the foundation for all subsequent actions. Impeccable Documentation. Special attention must be paid to preparing a well-reasoned justification for classification into the highest qualification category A, as well as drafting an employment contract that fully reflects management functions and complies with the requirements of both Chinese labor and investment legislation. Strict Adherence to Regulations. Each stage of the procedure – from company licensing to obtaining a residence permit – has legally established deadlines. Violating them can lead to rejections, fines, and complications for further stay. Chinese regions, including Zhejiang Province, demonstrate an interest in attracting responsible foreign investors and competent managers. This policy finds practical expression in the existence of detailed public guidelines and special simplified administrative procedures available to highly qualified specialists and entrepreneurs of Category A. Thus, the consistent and professional use of legally provided mechanisms allows the foreign investor-manager not only to successfully launch and develop a business in China but also to legalize their stay and work activity in the most effective and long-term manner. China Residence Permit Through Business Setup <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Company registration tailored for visa eligibility <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Full compliance with immigration regulations <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Ongoing support for status renewal Free consultation 5 Key Questions and Answers About Obtaining a Visa and Residence Permit for Foreign Investors in China FAQ 1: Why, as the founder of my own company in China, can’t I just come and work in it? Chinese legislation clearly separates the roles of owner (investor) and employee (hired worker). As an investor, you have the right to own shares and receive dividends, but you do not have the right to engage in work activity (operational management, signing contracts, receiving a salary) without the corresponding permit documents. To work in your own company, you are obliged to register yourself as an employee – obtain a work permit (Work Permit) and a work-type residence permit (Work-type Residence Permit). Working without these documents is illegal and leads to fines, deportation, and being placed on a “blacklist.” FAQ 2: What worker category (A, B, C) do I need to obtain and how do I qualify for it? For a founder-director, Category A (highly qualified specialist/talent) is optimal and desirable. It provides key advantages: no strict age or education restrictions, accelerated and simplified application processing, permit validity up to 5 years, and the possibility of obtaining a long-term residence permit and benefits for the family. To qualify as Category A, you need to provide evidence that you are not just an investor but a strategic manager or bearer of unique technologies. This is confirmed by a set of documents: a business plan emphasizing benefits for the local economy, evidence of investment, proof of management experience, patents or unique certificates. FAQ 3: What is the step-by-step process for legalizing work and residence? The process consists of sequential steps that cannot be bypassed or rearranged: Company registration with your appointment as director in the articles of association. Registration of the company as an employer in the system for managing foreign labor. Application and receipt of the “Work Permit Notification” (Work Permit Notice) through the local Bureau of Foreign Experts Affairs. Application for a work visa (Z or preferably R) at a Chinese consulate abroad based on the obtained Notification. Entry into China, medical examination, and receipt of the plastic “Work Permit Card”. Application for a residence permit (Residence Permit) at the local public security bureau (PSB) within 30 days of entry. Only after completing all 6 steps is your status fully legal. FAQ 4: What is the difference between an R visa, a work permit, and a residence permit? These are three different but interconnected documents: Visa (R or Z): This is the entry pass. Issued by a consulate abroad. The R visa is for highly qualified specialists (Category A) – it offers a longer validity and priority processing. Work Permit (Work Permit Card): This is the right to engage in work activity. Issued in China after entry. A physical plastic card confirming your worker status. Residence Permit (Residence Permit): This is the right to reside and enter/exit multiple times. Affixed in the passport in China. This document is what makes you a resident. Important: Without a work permit, you will not be given a residence permit, and without an R/Z visa, you cannot enter the country to apply for them. FAQ 5: What main mistakes must be avoided in this process? It is critically important to avoid the following mistakes: Attempting to work on a business (M) or tourist (L) visa. This is illegal. The purpose of the visa must strictly correspond to the activity. Incorrect drafting of an employment contract with oneself. The contract between you (the company) and you (the employee) must be legally flawless, with clear duties and a salary not lower than the regional norm. Missing deadlines. Missing deadlines (e.g., 30 days to apply for a residence permit after entry) leads to fines and complications. Insufficient justification for Category A. A formal application without a convincing document package (business plan, investment evidence, experience) can lead to rejection or assignment to the less privileged Category B. Ignoring subsequent obligations: After receiving the documents, you must register with the tax authorities, apply for renewals before expiration, and timely report changes (address, position) to the authorities. Ask a question How a Foreign Investor Can Obtain a Visa and Residence Permit in China as Founder and Director of Their Own Company
Launching a Business in China: Where to Start to Avoid Risks
The idea of opening a company in China is inspiring: new niches are formed here annually—from digital services and biotechnologies to the export of premium goods and green-tech solutions. The market actively supports innovation, and the growth of domestic demand makes the PRC attractive not only for industrial investments but also for agile projects. However, […]
The idea of opening a company in China is inspiring: new niches are formed here annually—from digital services and biotechnologies to the export of premium goods and green-tech solutions. The market actively supports innovation, and the growth of domestic demand makes the PRC attractive not only for industrial investments but also for agile projects. However, it is important to remember: without the correct registration of a legal entity, any commercial activity by a foreigner is considered illegal. Even preparation for market entry requires compliance with the established procedure—starting from choosing the legal form and ending with tax registration. What You Need to Know Before Registering a Company in China Since 2020, the procedure has become simpler thanks to the Foreign Investment Law and the digitalization of public services: for example, registration through the One-Stop Service allows submitting documents to the SAMR, tax authorities, and bank within a single process. But simplification does not cancel responsibility. Mistakes at the stage of choosing the structure (for example, an attempt to conduct direct sales through a representative office) can lead to the suspension of activities and fines. Business Structure Options for Foreigners As of 2026, the legislation of the PRC allows the following forms of presence: Representative Office – suitable only for marketing, research, and logistical coordination. Direct commercial activity is prohibited (clause 5 of the Regulations on Representative Offices of Foreign Enterprises, SAMR, 2023). Wholly Foreign-Owned Enterprise (WFOE) – fully foreign-owned capital, the ability to conduct business, hire staff, and receive profits. The most popular form for long-term presence. Legal entity with a Chinese partner (Joint Venture) – today it is used rarely and only for operational reasons (for example, access to licensed spheres: telecom, education). The form 中外合资企业 as mandatory has been abolished. The choice depends on the goal: entering the Chinese market with on-site sales almost always requires a WFOE, while market reconnaissance and B2B support can be handled with a representative office. <img loading="lazy" decoding="async" width="1400" height="2129" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-how-to-open-a-business-in-china_-3-legal-paths-for-foreigners.webp" alt="How to Open a Business in China_ 3 Legal Paths for Foreigners" class="wp-image-21009" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-how-to-open-a-business-in-china_-3-legal-paths-for-foreigners.webp 1400w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-how-to-open-a-business-in-china_-3-legal-paths-for-foreigners-197x300.webp 197w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-how-to-open-a-business-in-china_-3-legal-paths-for-foreigners-673x1024.webp 673w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-how-to-open-a-business-in-china_-3-legal-paths-for-foreigners-768x1168.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-how-to-open-a-business-in-china_-3-legal-paths-for-foreigners-1010x1536.webp 1010w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-how-to-open-a-business-in-china_-3-legal-paths-for-foreigners-1347x2048.webp 1347w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-how-to-open-a-business-in-china_-3-legal-paths-for-foreigners-99x150.webp 99w" sizes="auto, (max-width: 1400px) 100vw, 1400px" /> WFOE: An Independent Legal Entity for Foreign Business in China A Wholly Foreign-Owned Enterprise (WFOE) is an ordinary limited liability company registered in the PRC, where 100% of the capital is owned by a foreign investor – an individual or legal entity. No Chinese co-founders, neither in capital nor in management, are required – this is directly confirmed by Article 4 of the Foreign Investment Law (2024). This form is in demand when opening a business in China, where control, transparency, and long-term stability are important. What does a WFOE actually allow? Full control: appointment of the general director, team selection, approval of financial policy – everything is decided by the foreign owner. Broad scope of activity: manufacturing, services, B2B/B2C trade, export-import operations – as long as the activities do not fall under the prohibitions of the Negative List. Rights like any Chinese legal entity: opening accounts in RMB and USD, registering office or warehouse for lease/ownership, participation in tenders, payment of dividends abroad. Standard tax scheme: corporate tax – 25% (reduced to 15% in preferential zones, for example, Hainan or Pudong), reporting according to CAS standards, submission of forms through the STA electronic cabinet. <img loading="lazy" decoding="async" width="1190" height="1123" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-wfoe-a-standard-llc-in-china-with-foreign-capital.webp" alt="WFOE = A Standard LLC in China with Foreign Capital" class="wp-image-21024" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-wfoe-a-standard-llc-in-china-with-foreign-capital.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-wfoe-a-standard-llc-in-china-with-foreign-capital-300x283.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-wfoe-a-standard-llc-in-china-with-foreign-capital-1024x966.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-wfoe-a-standard-llc-in-china-with-foreign-capital-768x725.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/2.-wfoe-a-standard-llc-in-china-with-foreign-capital-159x150.webp 159w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> How does the company registration in China in the WFOE format proceed? Document submission – through the One-Stop Service at SAMR: charter, resolution on establishment, confirmation of source of funds, data of beneficial owners. All materials – in Chinese; for individuals – passport with apostille and notarized translation. Timeline – from 7 to 12 working days in 2026, if no additional licenses are needed (for example, for medical products or online trade). Important: since 2020, the Approval Certificate has been abolished – instead, an entry in the National Enterprise Public Information System (www.gsxt.gov.cn) is sufficient. A WFOE is not a “special regime,” but a standard LLC with foreign capital. This model is the best choice for those planning entry into the Chinese market as a strategic direction: without management compromises, with the ability to develop a brand, scale logistics, and build a local team – from a startup office in Suzhou to an industrial cluster in Guangdong. <img loading="lazy" decoding="async" width="1190" height="1578" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.-how-company-registration-in-china-wfoe-proceeds.webp" alt="How Company Registration in China (WFOE) Proceeds" class="wp-image-21039" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.-how-company-registration-in-china-wfoe-proceeds.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.-how-company-registration-in-china-wfoe-proceeds-226x300.webp 226w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.-how-company-registration-in-china-wfoe-proceeds-772x1024.webp 772w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.-how-company-registration-in-china-wfoe-proceeds-768x1018.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.-how-company-registration-in-china-wfoe-proceeds-1158x1536.webp 1158w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/3.-how-company-registration-in-china-wfoe-proceeds-113x150.webp 113w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Joint Venture in China: When Partnership with a Local Company is a Strategic Advantage A Joint Venture (JV) is a legal entity established in the territory of the PRC with the participation of both a foreign and a Chinese investor. This form is in demand when entry into the Chinese market is associated with restrictions on foreign capital share or requires deep localization – for example, in the fields of telecommunications, automotive industry, or higher education. Although the mandatory establishment of JVs in most industries was abolished with the adoption of the Foreign Investment Law (2020), it remains a key tool in segments included in the Special Administrative Measures (Negative List), approved by MOFCOM and NDRC (ed. 2025). Two Operational JV Models In modern practice, two formats are used, enshrined in Chapter IV of the Company Law: Equity Joint Venture (EJV) – a classic structure where the share of participation directly determines the right to profit and a vote on the board of directors. Accounting is conducted according to unified CAS rules, and the enterprise is liable for its obligations with its own assets. Cooperative Joint Venture (CJV) – a flexible form allowing asymmetry: for example, the Chinese side contributes land or a license, the foreign side contributes technology and capital, and profits are distributed 60/40. The terms are detailed in the Contract of Cooperation, which takes precedence over the charter (clause 22 of the SAMR Guidelines on CJV, 2024). What is important when establishing a JV? The founding agreement (and charter) is registered with SAMR as the basis for creating a legal entity in the PRC. All parties bear joint and several liability for the accuracy of contributions (monetary, property, intangible assets) – verification is conducted within the framework of preliminary due diligence (Deloitte China, 2025). Management is built on the principle of consent: key decisions (budget, dividends, change of director) require a quorum on the board, the size of which is determined by the agreement. Disputes between partners are most often regulated through CIETAC (China International Economic and Trade Arbitration Commission) – an arbitration clause is mandatory when signing. Example: in the automotive industry (outside preferential zones, for example, Jinan New District), until 2025, there was a 50% limit on the foreign share in a JV with internal combustion engine production. Starting from 2026, the restriction has been lifted for electric vehicles — but JV remains effective for access to the dealer network and public procurement. When is a JV a reasonable choice? When access to licenses is needed that cannot be obtained directly by a foreigner; When localizing production within the framework of state programs (for example, “Made in China 2025”); To reduce risks in regions with high regulatory uncertainty – a local partner takes on coordination with authorities. This approach allows foreign investors not only to comply with requirements but also to integrate into the ecosystem – relying on proven connections and an understanding of the local business context. <img loading="lazy" decoding="async" width="1190" height="1128" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-joint-venture-jv-in-china.webp" alt="" class="wp-image-21054" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-joint-venture-jv-in-china.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-joint-venture-jv-in-china-300x284.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-joint-venture-jv-in-china-1024x971.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-joint-venture-jv-in-china-768x728.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/4.-joint-venture-jv-in-china-158x150.webp 158w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Representative Office in China: An Official “Bridge,” But Not a Business Unit A Representative Office (RO) is not a legal entity, but a territorial subdivision of a foreign company, officially accredited in the PRC for non-commercial activities. It acts on behalf of the head office and does not have independent legal personality. This form is in demand at the stage of entering the Chinese market, when it is necessary to study demand, establish contacts, and form a strategy – without obligations for taxes, registered capital, or complex establishment. What an RO can and cannot do? Permitted: • Conducting market research and competitor analysis; • Organizing meetings, presentations, exhibition participation; • Coordinating logistics, supporting clients, communicating with suppliers; • Hiring personnel through authorized HR agencies. Prohibited: • Entering into transactions, issuing invoices, receiving revenue in China; • Owning commercial real estate, warehouse stocks, or equipment; • Opening an RMB account – only a special account of the Non-Trade Foreign Exchange Account (NTEA) type to cover current expenses. <img loading="lazy" decoding="async" width="1190" height="1398" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-representative-office-ro-in-china-an-official-_bridge_-but-not-a-business.webp" alt="" class="wp-image-21069" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-representative-office-ro-in-china-an-official-_bridge_-but-not-a-business.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-representative-office-ro-in-china-an-official-_bridge_-but-not-a-business-255x300.webp 255w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-representative-office-ro-in-china-an-official-_bridge_-but-not-a-business-872x1024.webp 872w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-representative-office-ro-in-china-an-official-_bridge_-but-not-a-business-768x902.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/5.-representative-office-ro-in-china-an-official-_bridge_-but-not-a-business-128x150.webp 128w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Unlike a WFOE, a Representative Office (RO) is not registered as an independent legal entity in the PRC. Instead, it undergoes an official accreditation procedure with the State Administration for Market Regulation (SAMR). Key differences and procedure: Not a legal entity, but a subdivision: An RO is a legal but dependent office of the parent foreign company. It is liable for the obligations of the parent firm. Accreditation timeline: The approval process and issuance of the representative office registration certificate typically take from 20 to 45 working days from the moment of submitting the complete document package. In fact, registering a representative office takes longer than registering a WFOE. Document package: The main set includes: a completed application on the prescribed form, legalized constituent documents of the parent company, a resolution to establish the representative office, as well as an official explanatory letter outlining the planned activities of the representative office in the territory of the PRC. All responsibility – financial and regulatory – lies with the foreign parent company. Violation of restrictions (for example, an attempt to conclude a contract on behalf of the RO) leads to the annulment of accreditation and a fine of up to 100,000 CNY. Therefore, an RO is not a company registration in China, but a temporary preparatory tool for it. It is ideal for those just beginning to open a business in China and wanting to avoid the risks of premature commercial activity. <img loading="lazy" decoding="async" width="1190" height="1026" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-when-to-choose-an-ro_.webp" alt="" class="wp-image-21084" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-when-to-choose-an-ro_.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-when-to-choose-an-ro_-300x259.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-when-to-choose-an-ro_-1024x883.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-when-to-choose-an-ro_-768x662.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/6.-when-to-choose-an-ro_-174x150.webp 174w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Open a Company in China Without Mistakes or Delays <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Business structure tailored to your goals <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Complete documentation package <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> End-to-end support until license issuance Free consultation How to Prepare for Company Registration in China – and Where to Open a Business in 2026 Before submitting the package to SAMR, it is crucial to conduct preliminary verification – otherwise, even a perfectly registered legal entity may fail the verification stage at the stage of obtaining licenses. For example, selling dietary supplements without CFDA Registration or launching a platform without an ICP/EDI License entails domain blocking and a fine of up to CNY 100,000 (STA, Regulation No. 7, 2025). Mandatory steps before submission: Clarify if your activity is included in the Negative List for Foreign Investment (MOFCOM & NDRC, 2025); Determine if special permits are needed: Medical Device Registration (Class II/III), Network Security Review (for applications with access to personal data), Cross-Border Data Transfer Assessment; Check if mandatory certification is required: CCC (electronics, automotive), GB standards (drinking water, cosmetics), China Green Product; Assess if a “catchment warehouse” model (bonded warehouse) is possible or if localization is needed – this affects the choice of form: registering a WFOE. Geography as a Strategic Asset: Choosing a Location for Entering the Chinese Market Determining the region for registration is not merely a technical step, but a fundamental strategic decision. It should only be undertaken after developing the business model, analyzing the regulatory field, and choosing the organizational form (WFOE, FICE, or representative office). It is the location that will become the key factor determining your operational efficiency, financial model, and growth potential. The correct choice affects not only the tax rate but also: Launch speed: from 3 working days to 3-4 weeks in less prepared provinces. Access to resources: the partner ecosystem, talent pool, and integration into logistics chains. Regulatory climate: the level of administrative pressure and frequency of inspections, especially in sensitive industries (fintech, healthcare, data processing). Below is an overview of key jurisdictions relevant for long-term planning in 2026. Shanghai: A Platform for Global Premium Business For whom: Fintech, luxury segment, B2B consulting, high-margin logistics, and global supply chain management. Context: The Yangshan Port complex is a world leader in cargo turnover; the city is home to over 700 regional headquarters from the Fortune Global 500 list. Challenge: Maximum competition for talent, high wages, and high cost of Class A rental space. Strategic value: It has no equal for building long-term prestige and deep integration into international business networks. Hangzhou: An Ecosystem for Digital Leaders and Global Wholesale Trade For whom: Digital companies: SaaS, AI, cross-border e-commerce platforms, big data services. Wholesalers and distributors: Companies engaged in B2B sales of small-wholesale goods (from consumer electronics to textiles and souvenirs) to global markets. Context and ecosystem: Hangzhou is not just a city, but the core of the digital economy that gave rise to Alibaba, Ant Group, NetEase, DeepSeek. A complete infrastructure for digital business has been created here: from MVP testing in Qiantang Valley to scaling through the APIs of platforms like Tmall Global and Cainiao Logistics. Key strategic advantage: proximity to the city of Yiwu – the “wholesale capital of the world” and Shanghai – a global financial center. Yiwu is a global small-wholesale hub, where tens of thousands of factories and suppliers are concentrated, offering incredible product variety based on the principle of “small order, big variety”. Registering a company in Hangzhou provides a legal and operational status in a developed metropolis with simultaneous direct access to the commodity flows of Yiwu, located just ~150 km away (about 1 hour by high-speed train) and Shanghai. The ideal “office in Hangzhou, warehouse/logistics in Yiwu” model: You locate your headquarters, sales department, and digital team in the modern ecosystem of Hangzhou, while conducting procurement, order assembly, and export logistics through the capacities of Yiwu, including its famous market and super-modern airport (Yiwu Airport), specializing in cargo air transportation. Advantages for business: For digital projects: Record registration speed (3–5 working days), preferential tax rates (from 10%), access to venture capital and technical talent. For wholesale trade: A combination of Hangzhou’s digital tools (Alibaba.com, international online payments) and Yiwu’s physical product base. This allows for creating hybrid business models, such as launching dropshipping platforms or managing supply chains for Amazon/Shopify with minimal costs. Strategic value: Hangzhou (in conjunction with Yiwu) offers a unique symbiosis of digital infrastructure and a physical product base. This is the ideal jurisdiction for companies that want to not just sell goods from China, but build technologically advanced, scalable business models in the fields of e-commerce and global distribution, having both code and product at hand. This is a choice for speed, innovation, and an unprecedented connection to the supply chain. Guangzhou: The Hub of Physical Export For whom: Manufacturers and wholesale exporters focused on ASEAN, Middle Eastern, and African markets. Context: Host of the Canton Fair – the world’s largest import-export fair, creating a unique concentration of verified suppliers and buyers. Advantage: Direct access to the Nansha port infrastructure and a culture of B2B cooperation developed over decades. Strategic value: Reducing transactional costs and time-to-market for physical goods globally. Shenzhen (Nanshan): The Factory of Industry 4.0 For whom: High-tech manufacturing with a focus on robotics, precision components, medical equipment, and smart automation. Context: The flagship “smart manufacturing” cluster within the Greater Bay Area project, with direct logistics corridors. Support: Direct subsidies for modern equipment (up to ¥3 million), tax holidays, and minimal distance to the port. Strategic value: Operational advantage for export-oriented high-tech factories with an automation rate of 70% or higher. Beijing: The Center of Strategic Innovation For whom: R&D centers, startups in deep tech, biotech, quantum computing, and “smart cities.” Context: Concentration of scientific elite (92 state laboratories, 36 top universities) and regulatory bodies. Important: Manufacturing with any significant emissions is practically impossible to approve — priority is given to “clean” technologies. Strategic value: Direct access to state grants, strategic partnerships, and the “brains” of the nation. Chongqing: The Gateway to the Eurasian Continent For whom: Logistics operators, projects in automotive and green energy, targeting the domestic market of Western China and Eurasia. Context: The largest river port in the PRC and a key node of the “New Silk Road” land routes. Advantage: Significantly lower land and labor costs (35-50% lower than on the coast) + direct railway links to Europe. Strategic value: The optimal point for cheap placement of production facilities with subsequent shipment of products to the EU by land. Tianjin: The Industrial Hub of Northern China For whom: Enterprises in the chemical, petrochemical industry, and automotive component manufacturers. Context: The country’s second-largest port by cargo turnover, integrated into the Bohai Bay cluster with BMW, Toyota, Volkswagen plants. Advantage: Expedited registration procedure in the Binhai Zone (5-7 days) and specialized incentives for advanced manufacturing. Strategic value: Logistical advantage for working with markets in Northeast Asia, Mongolia, and Eastern Siberia. Suzhou: Shanghai’s High-Precision Manufacturing Twin For whom: Manufacturers of electronics, semiconductors, medical equipment, and pharmaceuticals. Context: Located 25 minutes by high-speed train from Shanghai, this cluster produces critical components for world technology giants. Advantage: Rental rates and operational costs are 30-40% lower than Shanghai’s, with full access to its infrastructure and talent. Strategic value: The ideal balance between proximity to the financial-logistical center and cost of ownership for high-end manufacturing. Chengdu: The Technological Capital of the West For whom: Software development centers, projects in the aerospace industry, biotech, and GovTech. Context: China’s fourth most significant technology hub with the Tianfu Park (1000+ foreign IT companies) and R&D centers of Intel, Siemens. Advantage: A deep talent pool cultivated by leading universities and developed air connectivity (100+ international flights). Strategic value: Control over the growing western market of China with a significantly lower cost of talent than in Beijing or Shanghai. <img loading="lazy" decoding="async" width="1190" height="2067" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-choosing-a-city-in-china-for-company-registration.webp" alt="" class="wp-image-21099" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-choosing-a-city-in-china-for-company-registration.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-choosing-a-city-in-china-for-company-registration-173x300.webp 173w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-choosing-a-city-in-china-for-company-registration-590x1024.webp 590w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-choosing-a-city-in-china-for-company-registration-768x1334.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-choosing-a-city-in-china-for-company-registration-884x1536.webp 884w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-choosing-a-city-in-china-for-company-registration-1179x2048.webp 1179w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/7.-choosing-a-city-in-china-for-company-registration-86x150.webp 86w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Preparing a Company Name: What to Consider Before starting the company registration process in China, it is necessary to approve its future name. This is a mandatory procedure upon which the success of all subsequent legal work depends. The main rule: the name must be completely unique nationwide. This applies to both the Chinese version and the English translation. The verification is conducted by the local market regulation authority (SAMR branch). Specialists compare the proposed options with the national registry, assess them for similarity to already existing ones, and check compliance with the corporate law norms of the PRC. Strict requirements are imposed on the name: It is prohibited to use words that may mislead government authorities or the public. It is not allowed to include indications of the type of activity if the company does not plan to engage in it or does not have the necessary licenses. The name must not contain terms contrary to public interests or the cultural traditions of China. If the verification reveals a match or non-compliance, you will have to choose a new option and submit it for re-examination. The procedure is repeated until a positive decision is obtained. Upon approval, you will receive an official certificate, which will be necessary for the next stages: submitting documents for the creation of a legal entity in the PRC, opening a bank account, and obtaining all subsequent permits. Documentation Package for Opening a Business in China Successfully navigating the formalities requires careful preparation of the documentation package. We recommend gathering it in advance. Founders’ documents. For individuals – notarized copies of foreign passports. If the founder is a foreign company, a full set of its legalized constituent documents will be required. Company Articles of Association. This document must clearly define the management structure, types of economic activities, profit distribution procedures, and other key provisions. It will become the foundation for your enterprise’s operations. Proof of legal address. For registering a WFOE, a lease agreement for a real office space is generally required. Using a virtual address is often impossible, as the registering authority has the right to conduct an on-site inspection of the specified location. Confirmation of registered capital. Although for most industries there is no mandatory minimum amount set, the presence of capital must be confirmed. At the registration stage, a bank statement is usually sufficient; later, the funds must be deposited into the opened corporate account. Legalized translations. All documents issued outside the PRC must be translated into Chinese by a professional translator, and their copies must be notarized. Additional documents (if necessary). For sectors with special regulation (e.g., finance, education, healthcare), industry-specific licenses must be obtained in advance. A business plan or recommendation letters may also be required upon request. A correctly prepared documentation package submitted through the “One-Stop Service” system significantly speeds up entry into the Chinese market and reduces the risk of receiving official rejections. <img loading="lazy" decoding="async" width="1190" height="1280" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-documentation-package-for-opening-a-business-in-china-wfoe.webp" alt="" class="wp-image-21114" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-documentation-package-for-opening-a-business-in-china-wfoe.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-documentation-package-for-opening-a-business-in-china-wfoe-279x300.webp 279w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-documentation-package-for-opening-a-business-in-china-wfoe-952x1024.webp 952w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-documentation-package-for-opening-a-business-in-china-wfoe-768x826.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/8.-documentation-package-for-opening-a-business-in-china-wfoe-139x150.webp 139w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Stages and Procedure for Registering a Legal Entity in the People’s Republic of China The process begins with the preparation of documents. Each document must strictly comply with Chinese norms, including a certified translation into the state language. Inaccuracies at this step will lead to delays later. Submission of Documents to the Authorized Body The prepared package is submitted to the territorial market regulation authority (SAMR). Employees conduct a detailed verification: All data is cross-checked with national registries. Particular attention is paid to the uniqueness of the name and the correctness of the legal address. Even a minor error can be grounds for returning documents for revision. Verification Procedure The check includes formal analysis and, in some cases, actual actions. For enterprises with foreign investment, such as a WFOE, an on-site inspection of the declared office premises is possible. For joint ventures (Joint Venture), inspectors carefully study the contract between participants and the distribution of powers. Obtaining the Registration Certificate (Business License) After successfully passing all checks, the registering authority – the State Administration for Market Regulation (SAMR) – enters the company into the Unified State Register and issues the Enterprise Registration Certificate (Business License, 营业执照). This document serves as legal confirmation of the company’s creation and its primary identification for conducting business activities. Under the standard procedure through the “One-Stop Service” system, the issuance of the certificate typically takes from 7 to 15 working days from the moment of submitting a complete and correct documentation package. For types of activities requiring additional approvals (e.g., in healthcare, finance, or education), the overall company registration timeline in China increases. Delays are related to the need to obtain separate industry-specific licenses after the SAMR registry entry stage. In special economic zones or for projects in priority industries, an accelerated registration procedure may apply, reducing the timeframe to 3-5 working days. This regulated process allows the investor to accurately plan the schedule for entering the Chinese market and minimize administrative risks. Understanding this sequence helps in properly planning the opening of a business in China and minimizing the risks of delays. Subsequent Steps After Initial Registration Obtaining the license is only the first stage. For the company to operate legally, a series of mandatory procedures must be completed. Tax Registration The company is obliged to obtain a Taxpayer Identification Number (TIN). At this stage, the applicable tax regime (e.g., VAT, corporate income tax) corresponding to the types of activities is determined. Opening a Bank Account A bank will open a corporate account only upon presentation of the business license. The procedure includes verification of the documentation package and beneficial owners and usually takes about one week. Registration with Social Insurance Funds Hiring employees obligates the company to register with social and pension insurance funds and make contributions for each worker. Obtaining Special Permits Engaging in foreign trade activities requires a separate permit. Operating in regulated sectors (finance, education, medicine) is possible only after obtaining the relevant specialized licenses from the respective ministries. <img loading="lazy" decoding="async" width="1190" height="2180" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-7-stages-of-registering-a-wfoe-company-in-china.webp" alt="" class="wp-image-21129" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-7-stages-of-registering-a-wfoe-company-in-china.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-7-stages-of-registering-a-wfoe-company-in-china-164x300.webp 164w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-7-stages-of-registering-a-wfoe-company-in-china-559x1024.webp 559w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-7-stages-of-registering-a-wfoe-company-in-china-768x1407.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-7-stages-of-registering-a-wfoe-company-in-china-838x1536.webp 838w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-7-stages-of-registering-a-wfoe-company-in-china-1118x2048.webp 1118w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/9.-7-stages-of-registering-a-wfoe-company-in-china-82x150.webp 82w" sizes="auto, (max-width: 1190px) 100vw, 1190px" /> Regular Company Obligations After Completing Registration in the People’s Republic of China After a legal entity is officially established, its management must ensure continuous compliance with a series of administrative and fiscal norms. These obligations are permanent and require a systematic approach. 1. Financial Accounting, Audit, and Tax Reporting Bookkeeping must strictly comply with the Chinese Accounting Standards (CAS). All accounting registers and reports are prepared in the Chinese language. Key requirements: Mandatory annual audit: For companies with 100% foreign participation (WFOE), conducting an independent financial audit at the end of the year is a legislative requirement. The audit report is submitted to the tax authorities. Regular submission of declarations Consequences of violations: Delayed submission of reports or tax payments leads to penalty charges, substantial fines, and in serious cases – to the blocking of bank accounts and restriction of activities. 2. Personnel Records and Compliance with Labor Norms Legal registration of employees is the foundation of stable operations. Each employee must have an official labor contract, drawn up in accordance with the Labor Code of the PRC. Mandatory procedures include: Registration and monthly contributions to social, medical, pension insurance funds, as well as the unemployment fund. Timely renewal or processing of new work visas and residence permits (Z, R category visas) for foreign employees. Compliance with occupational health and safety regulations, which are regularly inspected by relevant authorities. 3. Maintaining Legal Status and Renewing Permits Legal address and the right to operate must remain up-to-date. This block includes: Renewal of office lease agreement: A valid lease agreement for physical premises is a mandatory condition for maintaining the company’s legal address. Its expiration without timely renewal leads to the risk of being listed in the “dishonest companies” register. Renewal of industry-specific licenses: Permits for certain types of activities (e.g., import-export, ICP license for IT) have a limited validity period and require timely renewal. Annual company inspection (Annual Inspection): Submission of basic company data to the SAMR authorities to confirm the continuity of operations. Systematic management of these processes, often involving a local accountant and lawyer, is the key to the long-term and uninterrupted operation of the enterprise in the Chinese market. <img loading="lazy" decoding="async" width="1400" height="1451" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-3-key-blocks.webp" alt="" class="wp-image-21144" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-3-key-blocks.webp 1400w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-3-key-blocks-289x300.webp 289w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-3-key-blocks-988x1024.webp 988w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-3-key-blocks-768x796.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/10.-3-key-blocks-145x150.webp 145w" sizes="auto, (max-width: 1400px) 100vw, 1400px" /> Turnkey Business Registration in China <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> WFOE, JV & Representative Office setup <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> License eligibility & compliance verification <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Ongoing accounting support Free consultation 5 FAQs on Launching a Business in China FAQ 1: What is the best business form in China for a foreigner who wants to conduct full-scale commercial activity? For long-term and independent business operations with the right to sell, hire employees, and receive profits, the optimal choice is a WFOE (Wholly Foreign-Owned Enterprise). This is a full-fledged Chinese legal entity with 100% foreign capital, which gives full control over the business. A Representative Office (RO) does not allow commercial activity, and a Joint Venture (JV) is primarily used today for access to regulated industries (e.g., telecommunications or education). FAQ 2: How does registering a WFOE differ from opening a Representative Office (RO)? These are fundamentally different forms of presence: WFOE is a legal entity in the PRC. It can sign contracts, issue invoices, receive revenue, own property, and hire employees directly. The registration process takes 7-15 days. Representative Office (RO) is not a legal entity, but merely an accredited subdivision of a foreign company. It cannot conduct commercial activity (sell, receive profit) and is intended only for marketing, research, and client support. The accreditation process takes 20-45 days. An RO is a tool for market “reconnaissance,” not for conducting business. FAQ 3: Which city in China is best to choose for company registration? Answer: The choice depends on the business model and industry: Shanghai: For fintech, premium brands, B2B consulting, and managing global supply chains. Hangzhou: Ideal for digital projects (SaaS, AI, e-commerce) and wholesale trade thanks to the Alibaba ecosystem and proximity to the “wholesale capital of the world,” Yiwu. Shenzhen (Nanshan): For high-tech manufacturing and Industry 4.0. Guangzhou: For traditional export and access to ASEAN and Middle Eastern markets. Beijing: For R&D centers, deep tech, and biotech startups. FAQ 4: What are the key steps and timelines for registering a WFOE? Key stages through the “One-Stop Service” system: Preparation of documents: Articles of Association, founders’ documents with legalization and translation, proof of legal address (real office). Submission and verification to SAMR: approval of a unique company name and verification of documents. Obtaining the Business License: Issued within 7-15 working days after successful verification. Subsequent steps: tax registration, opening a corporate bank account (~1 more week), registration with social insurance funds. FAQ 5: What mandatory requirements must be fulfilled after company registration? After launch, the company must comply with constant administrative norms: Finance and taxes: Maintaining bookkeeping according to Chinese standards (CAS), submitting regular tax reports, and a mandatory annual audit for WFOEs. Personnel: Registering employees according to the Labor Code of the PRC, making monthly contributions to social and pension insurance funds, legally processing visas for foreign employees. Legal status: Maintaining an up-to-date legal address (timely renewal of office lease), renewing industry-specific licenses, and undergoing the annual inspection (Annual Inspection) with the SAMR authorities. Ask a question Launching a Business in China: Where to Start to Avoid Risks
Hong Kong Allocates $200 Million to Boost SME Competitiveness
The Government of the Hong Kong Special Administrative Region has announced a comprehensive support package aimed at enhancing the resilience and competitiveness of local small and medium-sized enterprises (SMEs), with total targeted funding amounting to USD 200 million. Key Support Areas Under this initiative, the subsidy cap for the BUD Fund (Special Fund on Branding, […]
The Government of the Hong Kong Special Administrative Region has announced a comprehensive support package aimed at enhancing the resilience and competitiveness of local small and medium-sized enterprises (SMEs), with total targeted funding amounting to USD 200 million. Key Support Areas Under this initiative, the subsidy cap for the BUD Fund (Special Fund on Branding, Upgrading and Domestic Sales) will be raised to USD 150,000 per application, encouraging companies to invest in brand development, digital transformation, and expansion into new sales markets. Special emphasis is placed on technological modernization: enterprises adopting artificial intelligence-based solutions will receive priority, tailored assistance from regulators. Insurance Protection and Guarantee Mechanisms To mitigate export risks, the Hong Kong Export Credit Insurance Corporation (HKECIC) will launch a pilot insurance program this year covering transactions with counterparties in high-risk jurisdictions — exclusively for SMEs. Concurrently, the SME Financing Guarantee Scheme is being expanded: Application deadline for the 80% Guarantee Product extended to 31 March 2028; Main scheme open for applications until mid-November 2026; Total credit guarantee capacity increased by USD 20 billion, providing additional liquidity access for thousands of businesses. Support for the Food Sector The Centre for Food Safety has waived certification fees for food products for a two-year period to reduce operational costs for manufacturers and distributors. By mid-2026, a new unified brand for local agricultural and fisheries products will be introduced, backed by an integrated quality control system featuring independent testing, certification, and end-to-end supply chain traceability.
China vs. Hong Kong: Where to Start a Business to Avoid Drowning in Rules and Still Make Money
Starting a business in mainland China and in Hong Kong are not the same thing at all. Mainland China offers direct access to the market, factories, logistics, and domestic demand. Hong Kong often functions as a convenient international platform: a company for contracts, payments, holding, and trade with the world — including China — without […]
Starting a business in mainland China and in Hong Kong are not the same thing at all. Mainland China offers direct access to the market, factories, logistics, and domestic demand. Hong Kong often functions as a convenient international platform: a company for contracts, payments, holding, and trade with the world — including China — without constantly battling currency restrictions and local bureaucracy. China and Hong Kong: Business Specifics <img loading="lazy" decoding="async" width="1024" height="992" src="https://www.vitaliberta.hk/wp-content/uploads/2025/12/1.-entrepreneurs-enter-china-for-very-practical-reasons_-1024x992.png" alt="" class="wp-image-16622" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/12/1.-entrepreneurs-enter-china-for-very-practical-reasons_-1024x992.png 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/1.-entrepreneurs-enter-china-for-very-practical-reasons_-300x291.png 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/1.-entrepreneurs-enter-china-for-very-practical-reasons_-768x744.png 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/1.-entrepreneurs-enter-china-for-very-practical-reasons_-155x150.png 155w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/1.-entrepreneurs-enter-china-for-very-practical-reasons_.png 1429w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Hong Kong, meanwhile, is formally part of China but has a separate legal and tax system and its own financial infrastructure. This explains the popularity of the model: “we work with China, but keep the company in Hong Kong.” Legally, it’s easier to conclude international contracts, receive payment in foreign currency, and build a holding structure. It’s important to understand: Hong Kong does not replace mainland operations if you genuinely need a physical presence “on the ground” (office, staff, sales within the PRC, manufacturing). But it often addresses tasks where a mainland company becomes too burdensome. Formats of Presence in Mainland China: What Foreigners Choose You can choose from two main options. WFOE — A Wholly Foreign-Owned Enterprise A WFOE (Wholly Foreign-Owned Enterprise) is a company with 100% foreign capital for operating in mainland China. You can independently conduct sales, sign contracts, hire people, rent an office, and handle import/export (with the necessary license). Pros: Full control without a Chinese partner, and all processes can be tailored to your needs. Cons: Lengthy timelines and extensive documentation, a real office is required, strict currency rules, and reporting. Joint Venture (JV) with a Chinese Partner A JV is chosen when access to the market, channels, licenses, or resources is difficult without a Chinese partner. They become your “entry door.” Cons: Control must be shared, conflicts can arise in practice, and exiting the project and dividing assets is usually complicated. Representative Office A Representative Office is a format for presence in China but without full-fledged commercial activity. Suitable for marketing, negotiations, supplier control, and preparing to launch a WFOE/JV. Earning revenue directly through a Representative Office is not allowed or is very limited. Mainland China: Regulatory Landscape You Need to Be Prepared For In short: China loves order, paperwork, and verifiable logic for every transaction. In practice, this looks like: Registration timelines often take from one week to one and a half months (depends on the city, industry, document readiness, office lease, and licenses). A real office is often mandatory; a “virtual address” won’t suffice. Foreign exchange transactions require evidential support: contracts, invoices, acceptance certificates, payment logic. Transfers and conversions can’t be done simply because “it’s more convenient.” The registered capital threshold is abolished and is determined by the necessary level of investment in the company until operational income covers the costs. The tax burden is usually heavier in structure — corporate income tax, VAT, plus regular reporting. Register a Company in China and Operate Directly <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Direct contracts with suppliers, no agents <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Full control of import, export, and logistics <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Legal online and offline sales in China Free consultation Hong Kong as an Alternative: Why It’s Chosen as an International Base Hong Kong is often chosen not for the love of geography, but for speed and clear rules. <img loading="lazy" decoding="async" width="876" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/12/2.-typical-advantages-of-hong-kong_-876x1024.png" alt="" class="wp-image-16623" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/12/2.-typical-advantages-of-hong-kong_-876x1024.png 876w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/2.-typical-advantages-of-hong-kong_-257x300.png 257w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/2.-typical-advantages-of-hong-kong_-768x898.png 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/2.-typical-advantages-of-hong-kong_-1314x1536.png 1314w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/2.-typical-advantages-of-hong-kong_-128x150.png 128w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/2.-typical-advantages-of-hong-kong_.png 1429w" sizes="auto, (max-width: 876px) 100vw, 876px" /> Hong Kong has a different tax logic. The territorial principle applies, so profits deemed sourced outside Hong Kong are not subject to local tax with correct justification and accounting. Profits sourced in Hong Kong are taxed at 8.25% on the first HKD 2 million and 16.5% on the excess. In mainland China, the standard corporate income tax rate is 25%. Comparison of China and Hong Kong <img loading="lazy" decoding="async" width="1531" height="2560" src="https://www.vitaliberta.hk/wp-content/uploads/2025/12/3.-china-vs.-hong-kong-a-visual-comparison-scaled.png" alt="" class="wp-image-16624" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/12/3.-china-vs.-hong-kong-a-visual-comparison-scaled.png 1531w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/3.-china-vs.-hong-kong-a-visual-comparison-179x300.png 179w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/3.-china-vs.-hong-kong-a-visual-comparison-612x1024.png 612w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/3.-china-vs.-hong-kong-a-visual-comparison-768x1284.png 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/3.-china-vs.-hong-kong-a-visual-comparison-918x1536.png 918w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/3.-china-vs.-hong-kong-a-visual-comparison-1225x2048.png 1225w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/3.-china-vs.-hong-kong-a-visual-comparison-90x150.png 90w" sizes="auto, (max-width: 1531px) 100vw, 1531px" /> When to Open a Company Specifically in Mainland China You are almost certainly “ready” for the PRC if you have: Manufacturing/assembly in China. Need employees, quality control, warehouse, local contracts, sometimes licenses. Offline retail or active sales in the domestic market. Especially if working with Chinese platforms, distributors, chains. Government procurement, state projects, work with large PRC corporations. They often want to see a counterparty within the country. Intensive B2B/B2C work inside China. Where money, logistics, and service essentially reside within the PRC. Procurement of goods from PRC enterprises/companies without an export license. Besides the idea, the entrepreneur will need patience with timelines and inspections, willingness to maintain a real office, and a fully set-up Chinese accounting and tax framework from the start, not on a “we’ll figure it out later” principle. When It’s More Logical to Start with Hong Kong Hong Kong often wins if: International trade with Chinese factories. You buy in the PRC — sell to other countries, and your sales office is not in China. Export/import and payments in different currencies. Need a convenient “contract center” that doesn’t break down with every transfer. IT services, consulting, services. Team is distributed across different countries, and there is no physical presence in the PRC. You are still testing the market. Don’t want to immediately invest in a lengthy WFOE registration, office, and local reporting. At the start, a practical model is: open a Hong Kong company as a center for contracts and payments, and work in China through contractors — for manufacturing, logistics, quality inspections, and fulfillment. It’s better to launch a WFOE later, when clear volumes appear and the necessity of your own legal entity in the PRC becomes obvious. Use China for Business Growth and Global Expansion <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Export VAT refund of up to 13% <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Corporate bank account in China and other currencies <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Office, warehouse, or manufacturing in China Free consultation Conclusion Mainland China and Hong Kong solve different problems, so the choice shouldn’t be “where is it easier,” but “where is the result needed.” China is direct access to the domestic market, manufacturing, personnel, and contracts within the PRC, but you pay for it with time, office, paperwork, and strict rules on currency and reporting. Hong Kong is a convenient international platform for contracts, payments, holding, and trade with China without excessive bureaucracy, but it won’t replace a real presence if you operate inside China. The most practical path for many is to start with Hong Kong for international operations and connect a Chinese WFOE when stable volume appears and the need to “set down roots” in the PRC arises.
Pros and Cons of Opening and Managing a Business in Hong Kong
The “one country, two systems” concept provides startups in Hong Kong, as a Special Administrative Region (SAR) of China, with extensive opportunities for growth. Annually, the city ranks at the top of global ratings, indicating its openness to business activities. So, what could be the key advantages of opening a company in Hong Kong specifically […]
The “one country, two systems” concept provides startups in Hong Kong, as a Special Administrative Region (SAR) of China, with extensive opportunities for growth. Annually, the city ranks at the top of global ratings, indicating its openness to business activities. So, what could be the key advantages of opening a company in Hong Kong specifically for you? Registration Process First of all, it is worth noting the timelines, financial investment, and remote work format. For instance, registration takes 2 days, the minimum share capital threshold is 1 Hong Kong dollar, and there is a simplified procedure for document legalization via apostille. Overall, the costs at the company formation stage are very low compared to other jurisdictions. The lower threshold for business registration cost here starts from 990 US dollars. <img loading="lazy" decoding="async" width="979" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-opening-a-business-in-hong-kong-quickly-and-with-minimal-investment-979x1024.webp" alt="" class="wp-image-15922" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-opening-a-business-in-hong-kong-quickly-and-with-minimal-investment-979x1024.webp 979w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-opening-a-business-in-hong-kong-quickly-and-with-minimal-investment-287x300.webp 287w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-opening-a-business-in-hong-kong-quickly-and-with-minimal-investment-768x803.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-opening-a-business-in-hong-kong-quickly-and-with-minimal-investment-143x150.webp 143w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-opening-a-business-in-hong-kong-quickly-and-with-minimal-investment.webp 1429w" sizes="auto, (max-width: 979px) 100vw, 979px" /> In the SAR, renting a physical office is not mandatory, so it is more than feasible to conduct business outside of Hong Kong by opening a bank account remotely using modern payment systems. It is also convenient that non-residents can be both shareholders and directors without obtaining visas or permits. As for financial accounting, it is also in a simplified format with an annual reporting period. However, a local company secretary is required, and the storage of documents for most major types of financial and business operations is mandatory for audit purposes. <img loading="lazy" decoding="async" width="1024" height="989" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system-1024x989.webp" alt="" class="wp-image-15923" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system-1024x989.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system-300x290.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system-768x742.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system-1536x1483.webp 1536w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system-155x150.webp 155w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-advantageous-taxation-system.webp 1545w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Taxation Hong Kong offers a territorial principle of taxation. What does this mean? Profits tax is only levied on income sourced within the SAR. The following rates apply: 8.25% on profits up to 2 million Hong Kong dollars, and 16.5% on profits exceeding 2 million Hong Kong dollars. Also, companies do not pay VAT, which simplifies reporting and increases net profit. Geographical Location for Import and Export Being a major global hub for trade between East and West, Hong Kong has double taxation avoidance agreements with 49 jurisdictions. Its advantageous geographical location and access to Chinese markets provide ample opportunities for cooperation with mainland China on import and export. This enables duty-free trade, significantly reducing the cost of goods. <img loading="lazy" decoding="async" width="1024" height="756" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-hong-kong-a-global-trading-hub-between-east-and-west-1024x756.webp" alt="" class="wp-image-15924" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-hong-kong-a-global-trading-hub-between-east-and-west-1024x756.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-hong-kong-a-global-trading-hub-between-east-and-west-300x221.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-hong-kong-a-global-trading-hub-between-east-and-west-768x567.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-hong-kong-a-global-trading-hub-between-east-and-west-203x150.webp 203w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-hong-kong-a-global-trading-hub-between-east-and-west.webp 1429w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Legal Peculiarities Regarding dividends for businesses in Hong Kong, there are also a number of pluses. The frequency of these profit distributions is not regulated, and interim dividends are permitted. Furthermore, a preferential regime is in place: dividends are transferred to shareholders without withholding tax at source, and capital gains are not subject to taxation. Another attractive aspect for international investors of doing business in Hong Kong is the application of the English common law system, which allows for adapting contract terms according to business goals. In turn, the absence of foreign exchange control allows for making payments freely in any currency. It is important that transfers have a legal basis and are properly documented. Risks Are there any drawbacks or challenges to Hong Kong as a jurisdiction for establishing and running a business?There is always a chance of facing difficulties when opening a corporate account with traditional banks. But it is always possible to find an alternative in the form of payment service providers, which successfully meet the needs of small and medium-sized businesses. High competition in some sectors is also a factor. For example, in the real estate market, fueled by interest from wealthy mainland Chinese citizens and Hong Kong’s small size. Moreover, prices for residential and office properties here are among the highest in the world. But this too is solvable – a company is entitled to register in Hong Kong and conduct its operations in other countries without additional expenses for renting or buying property. Regarding financial relationships between the company and employees, there are some nuances, from the mandatory 13th-month salary at year-end to the employer’s 5% contribution to the Mandatory Provident Fund (MPF) scheme. However, you can hire foreign specialists without these contributions. <img loading="lazy" decoding="async" width="1024" height="836" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-features-of-hong-kongs-legal-system-and-business-environment-1024x836.webp" alt="" class="wp-image-15925" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-features-of-hong-kongs-legal-system-and-business-environment-1024x836.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-features-of-hong-kongs-legal-system-and-business-environment-300x245.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-features-of-hong-kongs-legal-system-and-business-environment-768x627.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-features-of-hong-kongs-legal-system-and-business-environment-184x150.webp 184w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-features-of-hong-kongs-legal-system-and-business-environment.webp 1429w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> The procedure for closing a business in Hong Kong takes more time than its incorporation, although it is quite transparent and predictable. One of the most accessible methods of liquidation is deregistration of the company, provided it has not commenced operations or has ceased operations for more than 3 months and has no outstanding liabilities. The process takes from 8 months and costs approximately 3,500 US dollars. An annual audit is mandatory here, which fosters a trustworthy reputation for Hong Kong. At this stage, receiving a clean audit opinion signifies the correctness of the financial statements. Overall, the requirement for an audit provides a basis for determining the profit or loss of Controlled Foreign Companies (CFCs) under Hong Kong legislation. Register company in Hong Kong in 1 day with free business bank account <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Profits made outside of Hong Kong are not taxed <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> There is no VAT tax or its equivalent in Hong Kong <path d="M15 10L11 14L9 12M12 21C7.02944 21 3 16.9706 3 12C3 7.02944 7.02944 3 12 3C16.9706 3 21 7.02944 21 12C21 16.9706 16.9706 21 12 21Z" stroke="#CEE7FF" stroke-width="2" stroke-linecap="round" stroke-linejoin="round"/> Top 3 in global Doing business rankings Free consultation Difficulties in obtaining a right of abode can also arise, but it is not necessary for running a business if you have no plans related to permanent presence in the SAR. It is also worth considering that the ability to utilize the tax advantages of the territorial principle depends on the physical presence of the company’s founder or its key employees in Hong Kong. In general, the SAR Government provides the right of abode to entrepreneurs and investors who contribute favorably to the city’s economic development. Opportunities What else is worth noting?Tourists and citizens of other countries can visit Hong Kong visa-free for up to 14 days. English has the status of a second official language, which practically eliminates translation difficulties in both business and everyday communication. Without any problems, in Hong Kong you will have the opportunity to register and get a permanent SIM card with a number from a local provider, as well as purchase a regional domain for your company’s website. <img loading="lazy" decoding="async" width="1024" height="679" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-what-else-makes-hong-kong-appealing_-1024x679.webp" alt="" class="wp-image-15926" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-what-else-makes-hong-kong-appealing_-1024x679.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-what-else-makes-hong-kong-appealing_-300x199.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-what-else-makes-hong-kong-appealing_-768x509.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-what-else-makes-hong-kong-appealing_-226x150.webp 226w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-what-else-makes-hong-kong-appealing_.webp 1429w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> The city provides great scope for shaping your lifestyle. This includes the possibility of leisure time on the beaches of the South China Sea, the experience of tasting unique and diverse Asian cuisine, and the opportunity to travel while running an international business without any restrictions. All of this together creates the foundation for forming your very own personal advantage, which outweighs any risks or drawbacks when starting a business in Hong Kong.
How to Obtain an MSO License in Hong Kong: A Step-by-Step Guide for Businesses
Since 1 April 2012, the regulation of Money Service Operators (MSOs) in Hong Kong has been carried out by the Customs and Excise Department (C&ED). The regulator’s authority is established under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, AMLO). An MSO licence is mandatory for any person—whether an individual or a legal entity—who […]
Since 1 April 2012, the regulation of Money Service Operators (MSOs) in Hong Kong has been carried out by the Customs and Excise Department (C&ED). The regulator’s authority is established under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, AMLO). An MSO licence is mandatory for any person—whether an individual or a legal entity—who carries on or intends to carry on a money service business in Hong Kong as a commercial activity. <img loading="lazy" decoding="async" width="1024" height="461" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-who-issues-the-licences_-1024x461.webp" alt="" class="wp-image-15556" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-who-issues-the-licences_-1024x461.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-who-issues-the-licences_-300x135.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-who-issues-the-licences_-768x346.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-who-issues-the-licences_-250x113.webp 250w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/1.-who-issues-the-licences_.webp 1363w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Money service activities are defined as two types of business: Money changing service This refers to the commercial activity of exchanging currencies carried out within Hong Kong. The following are not subject to regulation: Currency exchange incidental to a primary business activity (e.g., a retail store accepting payment in foreign currency); Currency exchange conducted by a hotel manager, provided both of the following conditions are met: the service is offered exclusively to hotel guests and only within the hotel premises; transactions are limited to purchasing foreign currency from guests in exchange for Hong Kong dollars. 2. Remittance service This refers to a commercial activity that includes one or more of the following actions: Sending money outside Hong Kong or arranging for such a transfer; Receiving money from abroad or arranging for such receipt or for the receipt of funds in a third country. <img loading="lazy" decoding="async" width="1024" height="717" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-what-is-a-_money-service__-1024x717.webp" alt="" class="wp-image-15557" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-what-is-a-_money-service__-1024x717.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-what-is-a-_money-service__-300x210.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-what-is-a-_money-service__-768x538.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-what-is-a-_money-service__-214x150.webp 214w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/2.-what-is-a-_money-service__.webp 1363w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> If your business activity is subject to MSO licensing, you must submit a licence application before commencing such operations. Conducting money service activities without a licence constitutes a breach of the AMLO and may result in serious legal consequences. The licence is issued in a form approved by the Customs and Excise Department (C&ED) and must include: The address(es) of the premises where the licensed activity may be carried out (for physical operators) or a correspondence address (for online operators); Licensing conditions imposed under Sections 30–32 of the AMLO; The licence validity period (typically 2 years). MSO Licensing Considerations Based on Business Scale Although all remittance service providers and money changers are subject to regulation under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO, Cap. 615), and the law formally sets out uniform licensing conditions—with the exception of premises-related requirements—in practice, the Customs and Excise Department (C&ED) adjusts the depth and scope of its review, as well as its final licensing decision, based on the type and scale of the applicant’s operations. Licensing for Small and Medium-Sized MSOs This category applies to businesses offering a limited range of services—for example, local-only remittance services or money changing activities confined to Hong Kong (such as standalone exchange counters). Although such operators may be subject to less stringent financial resource requirements, they are fully required to comply with all AML/CFT standards, including: Implementing internal customer due diligence (KYC) procedures; Appointing a designated compliance officer responsible for AML matters; Maintaining suitable and secure premises; And other requirements. 2. Licensing for Larger MSOs with International Operations For companies engaged in international remittance services—particularly those involving transfers to or from high-risk jurisdictions, licensing requirements are significantly stricter. Such applicants must demonstrate: Sufficient capital and liquidity to support ongoing operations; A robust compliance system, including sanctions screening and geographic risk management; Relevant experience of the management team in handling cross-border payments; Established banking relationships with local or international banks. The regulator (Customs and Excise Department) pays particular attention to the operator’s ability to manage the heightened risks associated with international operations. Requirements for Obtaining an MSO License in Hong Kong Who Can Apply for an MSO Licence? To obtain a Money Service Operator (MSO) licence in Hong Kong, a company must meet a set of specific eligibility criteria. Key Eligibility Criteria for an MSO Licence in Hong Kong To apply for an MSO licence, a company must satisfy the following key requirements: 1. Legal Status The applicant must be a legally registered entity in Hong Kong. This includes: A local company incorporated under the Companies Ordinance (Cap. 622), or A foreign company with a duly registered branch or place of business in Hong Kong. Foreign companies without a formal legal presence in Hong Kong are not eligible to apply for an MSO licence. 2. Business Registration The company must complete business registration with the Inland Revenue Department (IRD) and obtain a Business Registration Certificate (BRC). Important: The BRC must explicitly list a business nature that corresponds to MSO activities (e.g., “money changing” or “money remittance”). This is specified when submitting Form IRBR200. 3. Financial Soundness Applicants must demonstrate sufficient capital to support the declared scope of business. While the law does not prescribe a fixed minimum share capital, the Customs and Excise Department (C&ED) assesses the following factors: The company’s liquidity; Sources of funding; the ability to cover operational and risk-related costs in accordance with the scale of the planned operations. 4. Organisational Structure and Personnel The company must have a clear management and operational structure, including: A designated Compliance Officer; An AML Officer responsible for fulfilling anti-money laundering obligations; Qualified operational staff; An internal control and reporting system. The number and qualifications of personnel must be commensurate with the declared scale and geographic scope of the activities. <img loading="lazy" decoding="async" width="1208" height="2560" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-scaled.webp" alt="" class="wp-image-15560" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-scaled.webp 1208w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-142x300.webp 142w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-483x1024.webp 483w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-768x1627.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-725x1536.webp 725w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-967x2048.webp 967w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/3.-5-mandatory-requirements-for-obtaining-an-mso-licence-in-hong-kong-71x150.webp 71w" sizes="auto, (max-width: 1208px) 100vw, 1208px" /> Management and Key Personnel Requirements for an MSO License in Hong Kong In addition to the company itself, the regulator pays close attention to the personal and professional integrity of its directors and key personnel. Under MSO licensing practice, all individuals who exercise significant influence over the operator’s activities—including directors, beneficial owners, and the Compliance and AML Officers—must meet the “fit and proper person” criterion. This means they must be trustworthy, competent, and of good ethical standing. 1. Impeccable Business and Legal Reputation Applicants must not have: Criminal convictions, particularly for financial crimes such as money laundering, fraud, or tax evasion; Outstanding charges or ongoing investigations by law enforcement authorities; A history of disqualification as a company director in any jurisdiction; Verified involvement in suspicious or illicit financial schemes. The Customs and Excise Department conducts thorough screening using international databases, including World-Check and its own internal sources. 2. Professional Competence and Relevant Experience This is particularly important for individuals responsible for operations and compliance: Possession of practical experience in remittance services, money changing, or related financial sectors; Understanding of AML/CFT principles, including KYC procedures, transaction screening, and reporting of suspicious activity; Knowledge of the requirements under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615). Formal education (e.g., in finance, law, or compliance) is welcomed but does not replace relevant practical experience. 3. Absence of Conflicts of Interest Directors and key personnel must: Not hold undisclosed financial interests in competitor companies or counterparties; Not occupy positions that could interfere with the objective performance of their duties within the MSO; Disclose any potential conflicts of interest when submitting the licence application. 4. Reliability and Personal Integrity These qualities are assessed based on: References from previous employers or business partners; Completeness and accuracy of information provided in application forms and supporting documents; Conduct during any interview with a representative of the regulator. Any attempt to conceal information or submit false or misleading statements may result in licence refusal. Important: The regulator reviews not only current but also former directors and beneficial owners from the past 3–5 years. Even if an individual has resigned from management prior to the application, their background may still influence the licensing decision. The “fit and proper” assessment is not a mere formality—it is a critical component of the licensing process. The presence of even a single adverse factor listed above may serve as grounds for refusing to grant a licence or for revoking an already issued one. <img loading="lazy" decoding="async" width="1212" height="2461" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong.webp" alt="" class="wp-image-15563" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong.webp 1212w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong-148x300.webp 148w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong-504x1024.webp 504w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong-768x1559.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong-756x1536.webp 756w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong-1009x2048.webp 1009w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/4.-requirements-for-management-when-applying-for-an-mso-licence-in-hong-kong-74x150.webp 74w" sizes="auto, (max-width: 1212px) 100vw, 1212px" /> Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, AMLO), the Hong Kong Customs and Excise Department (C&ED) may grant or renew a Money Service Operator (MSO) licence only if all key individuals associated with the applicant meet the “fit and proper person” criterion—meaning they are reliable, competent, and of good ethical standing. Who is subject to this assessment? The scope of individuals reviewed depends on the applicant’s legal structure: If the applicant is an individual: the applicant themselves and all ultimate beneficial owners are assessed. If the applicant is a partnership: all partners and ultimate beneficial owners are assessed. If the applicant is a corporation: all directors and ultimate beneficial owners are assessed. Who is considered an ultimate beneficial owner (UBO)? An ultimate beneficial owner is a natural person who ultimately owns or controls the business, even if not formally named in official documents. For an individual applicant: The natural person who ultimately owns or controls the individual’s MSO business; or The person on whose behalf the individual is acting (e.g., in cases of nominee or trust arrangements). For a partnership: A person is considered a UBO if they: Own or control more than 25% of the capital or profit share; Hold more than 25% of voting rights in decision-making; Exercise ultimate control over the management or operations of the partnership. For a corporate applicant: An ultimate beneficial owner (UBO) is a natural person who: Holds more than 25% of the company’s shares, whether directly, through trusts, or other intermediate structures; Controls more than 25% of the voting rights at general meetings; Exercises de facto control over the company’s management or operations. Even if ownership is structured through intermediate companies, trusts, or nominee shareholders, the Customs and Excise Department (C&ED) requires full disclosure of the true beneficial owner(s). Such complex ownership arrangements typically complicate and prolong the licence application review process. <img loading="lazy" decoding="async" width="932" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_-932x1024.webp" alt="" class="wp-image-15564" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_-932x1024.webp 932w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_-273x300.webp 273w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_-768x844.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_-1398x1536.webp 1398w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_-137x150.webp 137w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/5.-who-undergoes-the-check-when-applying-for-an-mso-licence-in-hong-kong_.webp 1598w" sizes="auto, (max-width: 932px) 100vw, 932px" /> Premises Registration Requirements for MSO Licensing in Hong Kong According to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, AMLO), Money Service Operators (MSOs) must specify “particular premises” in their licence application if such premises are used to carry on their business. But what exactly qualifies as “particular premises,” and when is their registration mandatory? “Particular premises” are physical locations in Hong Kong where you actually conduct money changing and/or remittance services as a commercial activity. Such premises include: Spaces specifically occupied by you for conducting MSO activities; Addresses publicly advertised as customer service points (e.g., with signage); Premises under your continuous control—as a tenant or owner. Locations are not considered “particular premises” if you only visit them temporarily (e.g., a restaurant, bank, or the office of an accountant or lawyer) solely to complete paperwork, without providing financial services to clients on-site. If you operate without a fixed office—for example, remotely via mobile devices or through on-site client visits—you must still provide the following three mandatory details in your application: A Local Management Office (LMO); A correspondence address; A Local Place for Storage (LPS) for accounting and operational records. Requirements for “particular premises” In addition to formal registration, the Customs and Excise Department (C&ED) assesses the suitability of the premises from the standpoint of legality, transparency, and consumer protection. Acceptable premises: Must be readily accessible to C&ED inspectors without obstruction; May be located in mixed-use (commercial/residential) buildings, provided written consent from all residents is obtained for inspections. Unacceptable premises: Premises located in purely residential buildings; Addresses already used by another MSO or listed in another licence application; Spaces accessible only through the office of a third-party company; Premises with signage displaying a business name that does not match the name on the Business Registration Certificate (BRC). <img loading="lazy" decoding="async" width="960" height="2560" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-scaled.webp" alt="" class="wp-image-15565" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-scaled.webp 960w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-113x300.webp 113w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-384x1024.webp 384w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-768x2048.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-576x1536.webp 576w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/6.-particular-premises-for-mso-licensing-in-hong-kong-56x150.webp 56w" sizes="auto, (max-width: 960px) 100vw, 960px" /> What is a Local Management Office (LMO)? The LMO is a physical office in Hong Kong that serves as: The primary point of contact for the Customs and Excise Department (C&ED) (in person and by phone), The official address for receiving regulatory notices and correspondence, The workplace for key personnel, such as the director, owner, or Compliance Officer. Important: A residential address cannot be used as an LMO. The address of an accounting, legal, or secretarial firm is not acceptable. The property owner must provide written consent for the premises to be used for MSO activities (included in the lease agreement or a separate letter). Failure to include a valid LMO in the application renders it invalid. Non-compliance after licence issuance may result in suspension or revocation of the licence. Local Place for Storage (LPS) All operational and financial records must be kept at a dedicated physical location in Hong Kong that is accessible to C&ED inspections. LPS requirements are similar to those for the LMO: Must not be a residential address or the address of a third-party service provider; Must be under the direct control of the licensee; Requires written permission from the landlord. Failure to provide valid LPS details will lead to refusal of the licence application or, if discovered post-issuance, to cancellation of the licence. <img loading="lazy" decoding="async" width="1598" height="2081" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps.webp" alt="" class="wp-image-15566" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps.webp 1598w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps-230x300.webp 230w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps-786x1024.webp 786w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps-768x1000.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps-1179x1536.webp 1179w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps-1573x2048.webp 1573w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/7.-local-management-office-lmo-and-local-place-for-storage-lps-115x150.webp 115w" sizes="auto, (max-width: 1598px) 100vw, 1598px" /> Additional Requirements If multiple business activities are conducted in the same premises, MSO operations must be clearly segregated from other businesses. Shared use of premises with another MSO is prohibited. When operating from a mixed-use (commercial/residential) building, written consent from all residents is required to allow C&ED inspectors entry. Liability for Incomplete or False Information Under Section 52(2) of the AMLO, knowingly or negligently omitting material information—including details about premises—in a licence application constitutes a criminal offence. Penalty: a fine of up to HK$50,000 and imprisonment for up to 6 months. <img loading="lazy" decoding="async" width="1212" height="1373" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/8.-key-rules.webp" alt="" class="wp-image-15567" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/8.-key-rules.webp 1212w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/8.-key-rules-265x300.webp 265w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/8.-key-rules-904x1024.webp 904w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/8.-key-rules-768x870.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/8.-key-rules-132x150.webp 132w" sizes="auto, (max-width: 1212px) 100vw, 1212px" /> Registration of “particular premises” is not a mere formality—it is a key element in establishing regulatory trust. Even with a remote business model, you must maintain a physical connection to Hong Kong through a Local Management Office (LMO) and a Local Place for Storage (LPS). Only by fulfilling these requirements can you successfully obtain an MSO licence and mitigate future compliance risks. When applying for a licence to operate from a specific premises, you must attach at least two photographs (102 mm × 152 mm, 4R size) to the application form. Photo requirements: One photo must show the interior of the premises (e.g., the service counter or customer-facing area). The other photo must show the exterior of the premises (e.g., the company signage or storefront). If the applicant also uses separate premises designated as the LPS and/or LMO, a separate set of two photographs must be submitted for each such location. The photo requirements for LPS and LMO premises are identical to those for the main operational premises. MSO Business Plan The regulator assesses every aspect of your business through the lens of anti-money laundering and counter-terrorist financing (AML/CFT). Therefore, your business plan must be more than just a description of your business idea or financial projections—it must also demonstrate your operational and compliance readiness. The likelihood of a positive review depends directly on how complete your submission is and your ability to prove that your company is prepared and capable of meeting all legal and regulatory requirements. Your business plan must cover the following: Company identification State the legal and trading name, website address, and any registered trademark or logo that will be used to promote the business. Corporate history and source of capital Describe the background of the applicant company and the sources of its initial and operational capital. Clearly disclose whether the company is linked to other legal entities or holding structures, and if so, explain the nature of that control or affiliation. Key management personnel Provide detailed profiles of senior executives, including citizenship, professional experience, education, and relevant qualifications. This is critical for assessing their integrity and competence. Management structure Clearly indicate the legal and actual address where key business decisions are made. If the company has back-office functions (in Hong Kong or abroad), describe their roles and locations in detail. Target customer base Give a detailed description of your intended clients: their expected geographic location, nationality, and how you will attract and interact with them. Nature of operations in Hong Kong Clearly explain which specific activities will be carried out in Hong Kong and justify the need for a local licence. The description must cover the entire transaction cycle—from receiving a customer’s instruction to processing the transfer, movement of funds, compliance functions, accounting, and record storage. Service Delivery Channels List all planned services (money changing, remittance) and their intended launch schedule. Provide a detailed operational model for each service, including all delivery channels, order processing procedures, and the flow of funds through foreign agents or partners. If third-party providers are involved, submit their details and copies of relevant agreements. Pay special attention to measures protecting client funds against counterparty default risks. Bank Accounts Provide full details of all bank accounts to be used for the business (account numbers and account holders). The use of third-party accounts is strictly prohibited. If your business model does not involve opening a bank account, provide a comprehensive explanation of how services will be delivered without one. Financial Projections Submit justified forecasts of expected profitability and transaction volumes for each service over the next two years, along with an estimate of working capital required for day-to-day operations. Organisational Structure Local: Describe the group of companies in Hong Kong (parent company, branches, subsidiaries), their jurisdictions, and functions. Attach an organisational chart with a brief description of each entity’s role. International: Similarly disclose the structure of the international group to which the applicant belongs, including an organisational chart and descriptions. Business Premises If office space is shared with other businesses (including those not owned by the applicant), disclose their nature. Clarify whether these third-party businesses are owned or managed by the applicant’s directors or employees, and whether any business relationships exist with them. Local Human Resources Detail the structure of both management and operational staff: total headcount, positions, areas of responsibility (including compliance and suspicious transaction reporting duties), employment status (full-time/part-time), and reporting lines. Outsourcing Specify the names and scope of any outsourced services related to AML/CFT (e.g., external audit, engagement of specialised intermediaries). IT Systems Describe the computer systems in use, including commercial software and databases employed for automated AML/CFT monitoring and sanctions screening. Agency and Principal Relationships If the applicant acts as an agent or principal for other local MSOs or foreign companies, provide their names and a detailed description of the functions performed in that capacity. Other Business Relationships If the business relies on third-party payment platforms (e.g., digital wallets), explain their role in the operational model. If cash transportation (within Hong Kong or across borders) is involved, specify the companies or individuals responsible for it. Other Regulatory Oversight Indicate whether the applicant or its international group is subject to supervision by other regulators (e.g., holds financial licences in other jurisdictions). If so, name the relevant regulatory authorities. Important Legal Obligation As part of the business plan, the applicant must provide a written declaration confirming that they understand and undertake to comply with the legal requirement under the AMLO: any changes to the information submitted to the Commissioner of Customs and Excise for the purpose of obtaining or renewing an MSO licence must be reported in writing within one month of the change. Failure to comply or providing incomplete information may result in delays or rejection of the application. Thus, a thoroughly prepared business plan is not a mere formality—it is a strategic document that builds regulatory trust and lays a solid foundation for the legal and sustainable operation of your financial business in Hong Kong. <img loading="lazy" decoding="async" width="1440" height="2486" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan.webp" alt="" class="wp-image-15568" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan.webp 1440w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan-174x300.webp 174w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan-593x1024.webp 593w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan-768x1326.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan-890x1536.webp 890w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan-1186x2048.webp 1186w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/9.-mso-business-plan-87x150.webp 87w" sizes="auto, (max-width: 1440px) 100vw, 1440px" /> Regulatory and Operational Requirements for an MSO License in Hong Kong To obtain and maintain a Money Service Operator (MSO) licence, a company must implement a robust compliance system that meets the requirements of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) and the guidelines issued by the Customs and Excise Department (C&ED)—the MSO regulator in Hong Kong. 1. Implementation of an AML/CFT System The company must develop and maintain an internal anti-money laundering and counter-terrorist financing policy, including: Customer identification procedures (KYC); Ongoing transaction monitoring; A mechanism for detecting and promptly reporting suspicious transactions to the Joint Financial Intelligence Unit (JFIU); Regular staff training. 2. Strict KYC Policy Before commencing a business relationship, the operator must: Verify the client’s identity (for individuals — passport or identity card; for legal entities — certificate of incorporation, register extract, and beneficial ownership details); Establish the source of funds and the purpose of the transaction; Retain all KYC documents for at least 6 years after the termination of the business relationship. 3. Personal Data Protection Processing of client information must comply with the Personal Data (Privacy) Ordinance (PDPO, Cap. 486). This includes: Restricting access to personal data; Encrypting data during storage and transmission; Notifying affected individuals and authorities in the event of a data breach. 4. Reporting and Inspections After licence issuance, the company is required to: Submit an annual licence confirmation to the C&ED; Provide any requested information promptly upon demand; Undergo scheduled and unscheduled inspections. Failure to comply may result in a fine of up to HKD 100,000, imprisonment for up to 2 years, or licence revocation. 5. Financial Transparency MSOs must undergo mandatory auditing, like any other company. In addition to the standard financial audit, a separate AML audit is also required. Important: Merely having a formal policy in place is not enough—the regulator assesses whether procedures are actually implemented and followed in practice. <img loading="lazy" decoding="async" width="1524" height="2560" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-scaled.webp" alt="" class="wp-image-15582" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-scaled.webp 1524w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-179x300.webp 179w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-610x1024.webp 610w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-768x1290.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-915x1536.webp 915w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-1219x2048.webp 1219w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/10.-regulatory-and-operational-requirements-for-an-mso-licence-in-hong-kong-1-89x150.webp 89w" sizes="auto, (max-width: 1524px) 100vw, 1524px" /> MSO License Application Process in Hong Kong Key Steps to Apply for an MSO Licence The process of obtaining a Money Service Operator (MSO) licence in Hong Kong consists of several stages, each requiring thorough preparation and accuracy. Applications are submitted to the Hong Kong Customs and Excise Department (C&ED), which is the regulatory authority for this sector. Steps to Apply for an MSO Licence Preliminary Preparation Before submitting an application, ensure the company meets all legal requirements, including: Business registration in Hong Kong; Preparation of financial documents demonstrating solvency; Establishment of an appropriate organisational structure with qualified personnel; Development and implementation of KYC (Know Your Customer) policies and AML/CFT procedures. Submitting the Application to the Hong Kong Customs and Excise Department The licence application must be submitted either through the official e-application portal or in hard copy. The submission process may vary depending on the chosen format. The applicant must provide all required documents and demonstrate its eligibility. Documents Required for an MSO Licence Application in Hong Kong 1. Corporate Documents Articles of Association Form NNC1 (Incorporation Form) or NAR1 (Annual Return) Certificate of Incorporation Business Registration Certificate (BRC) clearly indicating the business nature as “money changing” and/or “money remittance” Documents appointing directors and company secretary Lease agreement for a commercial office in Hong Kong (residential addresses are not accepted) 2. Information on Management and Key Personnel CV and brief biography of each director, beneficial owner, and key staff member (including the Compliance Officer and AML Officer) Evidence of professional experience in finance, AML/CFT, or related fields Documents confirming the absence of criminal convictions and director disqualifications 3. Financial Documents Audited financial statements (balance sheet, profit and loss account) for the most recent completed financial year Proof of source of capital and liquidity (bank statements, investment agreements, etc.) 12-month cash flow forecast 4. Compliance Policies and Procedures AML/CFT policy, including: KYC and Customer Due Diligence (CDD) procedures Screening of customers and transactions against sanctions lists Monitoring of suspicious activity Internal reporting procedures and notifications to the JFIU Personal data protection policy in compliance with the PDPO (Cap. 486) 5. Operational Documents Description of business processes: how remittance and/or money changing services will be conducted Diagram or description of banking relationships and fund flows Technical cybersecurity and data protection measures 6. Business Plan Description of target customers, geographic scope of operations, and expected transaction volumes Justification for choosing Hong Kong as the licensing jurisdiction Marketing and partnership strategy 7. Bank Confirmation A letter from a bank confirming its willingness to open a corporate account for MSO activities. Preferred: issued by a licensed Hong Kong bank If the bank is outside Hong Kong: a clear justification must be provided explaining why transactions will be processed through a foreign bank despite holding a Hong Kong MSO licence Important: All documents must be submitted in English or Chinese. Non-residents must provide notarised translations of any documents originally in another language. <img loading="lazy" decoding="async" width="1093" height="2560" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-scaled.webp" alt="" class="wp-image-15579" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-scaled.webp 1093w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-128x300.webp 128w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-437x1024.webp 437w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-768x1799.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-656x1536.webp 656w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-874x2048.webp 874w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/11.-documents-required-for-an-mso-licence-application-in-hong-kong-1-64x150.webp 64w" sizes="auto, (max-width: 1093px) 100vw, 1093px" /> Application Submission via the Official Portal The application for a Money Service Operator (MSO) licence must be submitted exclusively online through the e-Services Portal of the Hong Kong Customs and Excise Department (C&ED). After successful submission, the system automatically: Generates an application reference number; Sends a confirmation of receipt to the provided email address; Displays estimated processing timelines (typically 30–60 working days, though this may be extended if additional information is requested). Important: Applications can only be submitted once the full set of required documents is ready. Incomplete or partially filled applications will not be accepted for review. Submission of Additional Materials During the review process, the C&ED may request: Clarifications regarding the business model or operational procedures; Additional evidence of financial soundness; Proof of qualifications of key personnel; Other supporting documents It is recommended to designate a responsible contact person to communicate promptly with the regulator and monitor the application status via the e-Services Portal. Steps to Apply for an MSO Licence Step Action Details 1 Preliminary Preparation Register the company in Hong Kong (including obtaining a Business Registration Certificate (BRC) specifying “money remittance” and/or “money changing”)Lease a commercial office—non-residential premises suitable for the scale of operationsDevelop internal policies: AML/CFT policyKYC/CDD proceduresPersonal data protection policy Assemble the team: Appoint directors and beneficial owners who meet the “fit and proper” criteriaHire a Compliance Officer and AML Officer with verified experience Obtain bank confirmation—a letter from a bank confirming willingness to open a corporate account for MSO activities (preferably from a Hong Kong-licensed bank)Select and finalise software systems.Prepare a comprehensive business plan 2 Application Submission Submit the complete application package via the official C&ED e-Services Portal (as of 2026, paper applications are no longer accepted)All key individuals (directors, beneficial owners, Compliance Officer) must pass the “fit and proper” assessmentReceive an automated confirmation of submission and an application reference number 3 Submission of Additional Materials If requested, provide supplementary information (e.g., clarifications on business model, KYC/AML systems, operational geography, customer segments, risk policies, etc.) Be prepared for possible requests for interviews or further explanations regarding operational procedures 4 Licence Issuance or Refusal • If approved, the MSO licence is issued for a period of 2 years MSO Licensing Fees in Hong Kong: Current Rates for 2025–2026 When applying for the issuance, renewal, or amendment of a Money Service Operator (MSO) licence in Hong Kong, applicants must pay fixed government fees set by the Customs and Excise Department (C&ED). All fees are denominated in Hong Kong dollars (HKD) and are non-refundable, even if the licence application is rejected. Below is the official fee schedule effective for 2025–2026: Initial Licence Application • Base licence fee: HKD 3,310 • For each additional business premises: HKD 2,220 • For each individual undergoing the “fit and proper” check (directors, partners, ultimate beneficial owners): HKD 860 Example: For a corporation with 2 directors, 1 beneficial owner, and 1 office, the total amount will be: 3 310 + (3 × 860) = HKD 5 890 Licence renewal • Base renewal fee: HKD 790 • For each additional premises: HKD 355 • For each individual undergoing a renewed “fit and proper” check: HKD 860 Note: Even if there are no changes in management, C&ED may require reconfirmation of the “fit and proper” status for all key individuals. Changes to composition or structure • Appointment of a new director, partner, or ultimate beneficial owner: HKD 860 per individual • Addition of a new business premises: HKD 2,220 per premises • Registration of “particular premises” for MSO activities: HKD 2,220 per premises Important to note All payments must be made before submitting the application via the official C&ED payment gateway. Fees do not include costs for legal advisory services, notarisation, or document preparation. Applications will not be processed in case of incomplete payment or incorrect payment details. <img loading="lazy" decoding="async" width="977" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026-977x1024.webp" alt="" class="wp-image-15576" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026-977x1024.webp 977w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026-286x300.webp 286w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026-768x805.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026-1465x1536.webp 1465w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026-143x150.webp 143w, https://www.vitaliberta.hk/wp-content/uploads/2025/11/12.-mso-licence-fees-in-hong-kong-2025-2026.webp 1598w" sizes="auto, (max-width: 977px) 100vw, 977px" /> Rights and Obligations of a Licensed MSO in Hong Kong Obtaining a Money Service Operator (MSO) licence is not the end of the process, but the beginning of ongoing compliance with strict regulatory requirements. The licence is issued for 2 years and requires annual confirmation. Failure to meet obligations may result in fines, suspension, or full revocation of the licence. 1. Ongoing Legal Obligations Continuous AML/CFT Compliance The company must maintain a fully operational and up-to-date anti-money laundering and counter-terrorist financing system in accordance with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) and the guidelines issued by the Customs and Excise Department (C&ED). Timely Notification of Changes Any changes to: The composition of directors or beneficial owners, Office address, Business model or geographic scope of operations, Appointment of the Compliance Officer must be reported to C&ED within 14 days via the e-Services Portal. Inspections C&ED has the authority to conduct scheduled and unscheduled inspections, including on-site office visits, requests for records, and interviews with staff. 2. AML/CFT Requirements: What Must Be Implemented in Practice KYC and CDD (Customer Due Diligence) Verify identity before the first transaction (passport for individuals; register extract + UBO details for legal entities) Establish the purpose and source of funds Apply Enhanced Due Diligence (EDD) for customers from high-risk jurisdictions or Politically Exposed Persons (PEPs) Monitoring and Reporting Conduct ongoing screening of transactions for suspicious activity. Immediately report suspicious transactions to the Joint Financial Intelligence Unit (JFIU) — within 24 hours of detection. Maintain a log of all checks and decisions. Keep customer files up to date at all times. Staff Training Mandatory AML/CFT training for all staff — at least once per year. Document training sessions and conduct knowledge assessments. Technical Measures Use appropriate software for KYC, transaction monitoring, and data storage. Ensure cybersecurity and protection against unauthorised access. Record Keeping Retain all KYC data, transaction records, and internal reports for at least 6 years, as required under Cap. 615. 3. Risk Management (Risk-Based Approach) The company must implement a formal risk assessment system, including: Customer risk classification (low / medium / high); Assessment of operational jurisdictions (taking into account FATF “grey” and “black” lists); Monitoring of large and unusual transactions (e.g., transactions exceeding HKD 8,000 without a clear purpose). 4. Reporting and Audit Annual licence confirmation — submitted via the e-Services Portal; Suspicious Activity Reports (SARs) — filed with the JFIU without delay; Mandatory annual audit and Profits Tax Return; AML/CFT audit (upon regulator’s request) — conducted by an independent consultant with experience in financial compliance. 5. Licensee Rights Conduct remittance and/or money changing activities within Hong Kong; Use the status of a licensed MSO to build trust with banks and partners; Seek clarifications from C&ED on the application of regulatory requirements. Risks Associated with MSO Activities in Hong Kong and Mitigation Strategies Money Service Operators (MSOs) operate in one of the most heavily regulated and high-risk segments of the financial sector. Even with a valid licence, a company remains exposed to operational, legal, financial, and reputational threats. Successful business operations require not only compliance with formal requirements but also proactive risk management. Key Risks for MSOs Money Laundering and Terrorist Financing Risks (AML/CFT) This is the primary and systemic risk for any MSO. As a FATF-member jurisdiction, Hong Kong maintains a zero-tolerance approach toward inadequate compliance. Even a single undeclared suspicious transaction may result in licence revocation. 2. International Operations Risks When serving clients from different countries, the following risks arise: Jurisdictional conflicts (e.g., EU/U.S. sanctions targeting third countries); Foreign exchange risks (sharp currency fluctuations during large transfers); Reputational risks from dealing with clients based in FATF “grey-listed” jurisdictions. 3. Fraud and Insider Threats External fraud: forged documents, “drop accounts,” social engineering; Internal misconduct: unauthorised transfers, manipulation of KYC data, collusion with clients. 4. Technology and Cyber Risks Data breaches, hacking of payment systems, or failure of AML monitoring software can all lead to non-compliance with the PDPO (Cap. 486) and AML requirements. 5. Consequences of Non-Compliance: Actual Penalties Violation Possible consequences Absence or merely formal implementation of an AML/CFT policy Fine of up to HKD 1,000,000 and/or imprisonment for up to 2 years (Section 5A, Cap. 615) Failure to submit a Suspicious Activity Report (SAR) Depending on the circumstances. Maximum penalty: licence revocation + criminal liability Providing false information in the application Licence refusal + prohibition on reapplying for 6–12 months Late notification of changes Fine of up to HKD 50,000 + licence suspension, depending on the circumstances Sanctions-related risks Closure of clearing bank accounts Risk Mitigation StrategiesProactive AML/CFT Controls Proactive AML/CFT Controls • Implement a dynamic KYC system with automatic client data updates • Use AI-powered screening against sanctions lists (OFAC, UN, EU, HKMA) • Configure transaction monitoring rules to flag anomalous activity (e.g., frequent transfers just below reporting thresholds) Geographic Risk Management • Maintain an internal “blacklist” of high-risk countries (even beyond FATF lists) • Apply Enhanced Due Diligence (EDD) for clients from such jurisdictions • Impose transaction volume limits for dealings with Politically Exposed Persons (PEPs) Fraud Prevention Measures • Enforce two-factor authentication for all transactions • Segregate duties: one staff member verifies the client, another authorises the transfer • Conduct regular internal audits and “penetration tests” (e.g., simulated fraud attempts) Technological Resilience • Store data in encrypted cloud systems with regular backups • Conduct quarterly penetration tests and keep software up to date • Comply with ISO/IEC 27001 standards where feasible Obligations for Data and Licence Updates • Annual licence confirmation: MSO licences are valid for 2 years but require annual renewal • Submit updated information via the C&ED e-Services Portal at least 30 days before expiry • Mandatory notifications of changes within 14 calendar days of occurrence: Changes in directors, beneficial owners, or Compliance Officer Office address change Business model changes (e.g., adding money changing services) Change of servicing bank Financial Information Updates • Update cash flow forecasts in case of significant increase or decrease in transaction volumes • Submit new supporting documents if the source of capital changes Monitoring Regulatory Changes Hong Kong regularly updates its regulatory framework in line with FATF recommendations. Companies are required to: Appoint a responsible person for tracking regulatory updates (typically the Compliance Officer); Subscribe to official alerts from C&ED, HKMA, and JFIU; Conduct quarterly reviews of internal policies to ensure alignment with new requirements; Implement necessary changes within 30 days of the effective date of any amendments. Successful MSO operations in Hong Kong are not just about holding a licence—they require a state of constant readiness for inspection. The regulator assesses not only documentation but also the company’s actual compliance culture. Those who invest in transparency, technology, and staff training gain more than just protection from penalties—they earn the trust of banks, partners, and clients. Trading Agent or Money Service Operator? Hong Kong law—specifically the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, AMLO)—does not establish a formal legal distinction between intermediary (agency) activities and money remittance services. Yet it is precisely this grey area that poses significant risks for businesses, as the correct classification of an activity directly determines whether an MSO licence is required. The following represents our own analysis of the relevant legal provisions. It does not claim to be definitive, nor does it substitute for the official interpretation by competent authorities. This is our personal opinion based on a review of the law. What is agency in the classical sense? A genuine trading agent never takes ownership or possession of the client’s funds. Their role is limited to: Facilitating the conclusion of a contract between buyer and seller; Representing the interests of one party under an agency agreement; Receiving a fixed fee or commission for the service rendered. In a classical agency arrangement, the payment (i.e., the contract amount) flows directly from the client to the supplier. The agent acts solely as a coordinator and does not handle the principal transaction amount—neither in full nor in part. When Does a Pumpkin Turn into a Carriage? Or: When Does a Trading Agent Become a Money Service Operator? If your business model involves the following: Receiving the full payment amount from an overseas client into your corporate bank account, Converting the currency (e.g., USD → CNY or HKD), Transferring the funds to the ultimate beneficiary while retaining your commission, —and you do this systematically and for commercial purposes (on behalf of multiple companies or individuals)—then you are, in fact, providing a remittance service as defined under Section 2 of the AMLO: “Remittance service means a business of sending, receiving, or arranging for the sending or receipt of money into or from outside Hong Kong.” In this context, the type of contract (agency, service, partnership, etc.) has no legal bearing on the classification of the activity. A trading agent may remain a trading agent—and simultaneously engage in two distinct types of activity: Agency services – arranging deals and representing clients’ interests; Payment services – receiving, converting, and redirecting funds. In such a case, the agency function is governed by general civil and contractual law, while the payment function falls under the scope of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615, AMLO) and requires an MSO licence—but only for the remittance component of the business. Thus, the company does not “cease to be an agent” but rather expands the scope of its activities, part of which becomes subject to specific licensing requirements. The key is to clearly separate these functions—operationally, contractually, and in accounting practices—to avoid commingling and ensure full compliance with regulatory requirements. What are the consequences of operating without an MSO licence? It is impossible to precisely predict how likely it is that your activity will be reclassified as a remittance service—this depends on numerous factors, including the number of complaints from affected parties, the scale and volume of unlicensed operations, and the regulator’s current enforcement priorities. Moreover, only the competent authorities—primarily the Hong Kong Customs and Excise Department (C&ED)—have the authority to assess this risk, typically during inspections or when investigating complaints. However, the legal consequences of operating without an MSO licence are clearly defined by law. Under Section 5(1) of the AMLO (Cap. 615), carrying out a remittance service without a valid MSO licence constitutes a criminal offence, punishable by: Imprisonment for up to 2 years, A fine of up to HK$1,000,000. Operational sanctions may also include: Freezing or closure of corporate bank accounts, Suspension or cancellation of business registration, Prohibition from conducting commercial activities in Hong Kong. Moreover, if serious violations of anti-money laundering and counter-terrorist financing (AML/CFT) legislation occurred during operations—for example, intentional concealment of the source of funds, disregard of suspicious transactions, or absence of KYC procedures—the penalties may be significantly aggravated. In such cases, the regulator is entitled to: Initiate criminal proceedings under Sections 5(5)–5(8) of the AMLO; Impose additional fines for each breach of AML obligations; Refer the case to the Joint Financial Intelligence Unit (JFIU) and the police for investigation into potential money laundering offences, potentially invoking the Organised and Serious Crimes Ordinance (Cap. 455). Even if the unlicensed activity was conducted “in good faith” or on a “temporary” basis, the mere presence of characteristics of a remittance service—without a valid MSO licence—renders the company vulnerable to complete operational shutdown and criminal prosecution. This approach eliminates speculation about likelihoods and instead focuses on clear legal consequences, enabling businesses to make decisions based on the mitigation of real, not hypothetical, risks. What to do if your business model is close to an MSO? Conduct an independent legal review of your operational structure. If the activities show signs of remittance services, the licensing process should be initiated before operations commence. In contracts and internal documentation, clearly separate: Agency functions (deal facilitation), Payment functions (movement of funds). The key principle of the C&ED: If you temporarily hold third-party funds for the purpose of onward transfer, you are a money service operator—regardless of your company’s name or how your contracts are worded. Frequently Asked Questions (FAQ) Who needs an MSO licence in Hong Kong? An MSO licence is required for companies engaged in money changing or remittance services to operate legally and comply with financial regulatory standards. Do I need an MSO licence if my company transfers money only for its own purposes? No, provided the transfers are not offered to third parties. An MSO licence is mandatory only for commercial activities—i.e., when you charge fees to exchange currency or transfer money on behalf of clients. Internal transfers within your corporate group (e.g., between parent and subsidiary) do not require a licence. How long does it take to obtain an MSO licence in Hong Kong? On average, 6 to 9 months. The timeline depends on: • Completeness and quality of the submitted application; • Need for clarifications from C&ED; • Complexity of the business model (e.g., international operations involving high-risk jurisdictions); • Beneficial owners; • Confirmation from a local bank. Can I apply for an MSO licence without a physical office in Hong Kong? No. A physical commercial office is mandatory. C&ED requires a valid lease agreement for non-residential premises in Hong Kong. Residential addresses, virtual offices, or mailbox-style addresses are not accepted. The regulator may conduct unannounced inspections to verify that the office is actively used for business. What happens if I operate without an MSO licence? You face severe penalties. Under Cap. 615, unlicensed MSO activity may result in: • A fine of up to HKD 1,000,000; • Imprisonment for up to 2 years; • Freezing or closure of bank accounts; • Termination of banking services, as banks typically cease servicing entities engaged in unlicensed MSO activities. Ask a question
Hong Kong Residence Permit Through Employment: Professional Advice and Common Mistakes
Working and living in Hong Kong attracts many foreigners due to the developed economy, high standards of living and the international status of the SAR. However, for legal work and long-term stay, a work visa is required, which subsequently opens the door to a permanent residence permit (PR). In this article, we explain in detail each step of the application, requirements and advice on obtaining a visa, as well as analyze common mistakes to avoid.
Working and living in Hong Kong attracts many foreigners due to the developed economy, high standards of living and the international status of the SAR. However, for legal work and long-term stay, a work visa is required, which subsequently opens the door to a permanent residence permit (PR). In this article, we explain in detail each step of the application, requirements and advice on obtaining a visa, as well as analyze common mistakes to avoid. Main types of work visas in Hong Kong Hong Kong offers several work visa programs depending on the applicant’s qualifications and professional experience. Each program has its own characteristics, and choosing the right one depends on income level, citizenship, education and a number of other factors. Familiarization with the main programs will help you understand which visa is best for you. Below are the main categories of work visas and their requirements. General Employment Policy (GEP) The program is designed for highly qualified and experienced professionals. GEP requires an offer from a Hong Kong company and allows for a stay of 36 months with the possibility of extension. The employer must provide evidence that the salary offered is in line with market standards, and the candidate has unique experience or knowledge that cannot be found in the local market. GEP has no quotas and is not tied to any sector. This entry procedure does not apply to: Nationals of China residing on the mainland; and Nationals of Afghanistan, Cuba and Korea (Democratic People’s Republic of). Mainland China Specialist Visitor Program (ASMTP) ASMTP targets skilled workers from mainland China, supporting key industries important to Hong Kong’s economy. To obtain an ASMTP visa, you must demonstrate relevant work experience and qualifications required for a specific position. Quality Migrant Admissions Scheme (QMAS) QMAS operates on a points system that evaluates parameters such as education, professional experience and language skills. The program is designed for highly qualified specialists who can contribute to the development of Hong Kong. The advantage of QMAS is the ability to obtain a visa without being tied to a specific employer.. Immigration Agreements for Graduates (IANG) The IANG is designed for graduates of Hong Kong and global universities and allows them to begin their careers without prior work experience. The visa is issued for up to three years and is renewable. Top Talent Placement Program (TTPS) TTPS is aimed at highly skilled individuals and is divided into three categories: Category A: Requires income of at least HK$2.5 million in the last year. Category B: A degree from a top university and at least three years of work experience. Category C: A degree from a top university and less than three years of work experience. Applicants in this category must take into account the limited annual quota. General requirements for obtaining a work visa under the GEP To obtain a work visa under the GEP you must: Have no problems with the law and safety. Have a higher education or high qualifications and experience. There must be a corresponding vacancy on the market. Pass the selection and receive a job offer that local specialists cannot satisfy. Have a salary and benefits at the level of market standards in Hong Kong. Have no problems with housing. Be able to easily pay for it from your salary or the employer must guarantee to provide it. Overseas Chinese nationals can apply if they have a permanent residence abroad or have lived there for at least one year prior to applying. “Overseas” refers to countries outside the Mainland, Hong Kong, Macau and Taiwan. Each application is assessed individually and the applicant must meet standard immigration requirements, such as holding a valid travel document and having a clean criminal record. GEP applicants can apply for entry for their spouses or partners if their marriage or partnership is officially recognized. Their stay will be the same as that of the sponsor. Extensions are possible if the conditions have not changed. Dependents can work or study in Hong Kong. Dependent children under 18 can also apply. This procedure does not apply to former Mainland Chinese residents in Macau and nationals of Afghanistan and North Korea. A common-law marriage can be recognized if it is officially registered and regulated by law. Applications take about four weeks to process after receiving all documents. Processing begins only after all necessary information has been provided. <img loading="lazy" decoding="async" width="634" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-634x1024.webp" alt="General requirements for obtaining a Hong Kong GEP work visa" class="wp-image-13941" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-634x1024.webp 634w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-186x300.webp 186w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-768x1239.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-952x1536.webp 952w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-1269x2048.webp 1269w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-93x150.webp 93w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-General-requirements-for-obtaining-a-Hong-Kong-GEP-work-visa-scaled.webp 1586w" sizes="auto, (max-width: 634px) 100vw, 634px" /> General requirements for obtaining a Hong Kong GEP work visa General Requirements for Obtaining a Work Visa under the Mainland Chinese Specialist Visitor Program (ASMTP) To obtain a work visa under the ASMTP program for specialists from mainland China, you must: Be a Mainland Chinese resident with unique skills that are needed in Hong Kong. Have no security issues or serious criminal record. Have a university degree in the required field or high qualifications and experience. Have a real vacancy and job offer that local specialists cannot fill. Receive a salary and benefits at the level of market standards in Hong Kong. The program has no quotas and is not limited by sectors. Applicants may also apply for entry for their spouses or partners, if their marriage or partnership is recognised. An application may also be made for dependent children under 18. To do this, you must: Prove a genuine relationship with the dependent. Have no recorded facts that would cause harm to the dependent. Provide the dependent with housing and funds above the subsistence minimum. These rules do not apply to former residents of mainland China in Macau and nationals of Afghanistan and North Korea. Dependents may stay in Hong Kong for the same period as their sponsors and may work or study. Applications for extension of stay will be considered if the conditions have not changed. Applications take approximately four weeks to process once all documents have been received. Processing will only begin once all required information has been provided. <img loading="lazy" decoding="async" width="677" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-677x1024.webp" alt="General Requirements for Obtaining a Hong Kong Work Visa under the ASMTP Program" class="wp-image-13942" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-677x1024.webp 677w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-198x300.webp 198w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-768x1161.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-1016x1536.webp 1016w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-1355x2048.webp 1355w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program-99x150.webp 99w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-General-Requirements-for-Obtaining-a-Hong-Kong-Work-Visa-under-the-ASMTP-Program.webp 1598w" sizes="auto, (max-width: 677px) 100vw, 677px" /> General Requirements for Obtaining a Hong Kong Work Visa under the ASMTP Program General requirements for obtaining a work visa under the Quality Migrant Admissions Program (QMAS) This program is designed to attract highly skilled and talented people to enhance Hong Kong’s economic competitiveness. Applicants do not need to have a job offer in Hong Kong before applying for the program. Successful applicants may bring their spouses, civil partners, or married partners if their status is officially recognized by the local authorities. Dependent children under 18 years of age may also be brought if the applicant is able to provide for their maintenance and housing without government assistance. The program does not apply to nationals of Afghanistan, Cuba, and Korea (Democratic People’s Republic of). Selection under the QMAS program Step 1: Prerequisites Candidates must first meet a number of prerequisites before proceeding to the next stage of assessment. These are: Applicant must be over 18 years of age Have a valid passport for international travel Have the ability to independently provide accommodation in Hong Kong Prove that they have the financial means to live in Hong Kong Have no legal problems Have a university degree or proven experience and achievements Step 2: Assessment Paths After completing the prerequisites, candidates can choose one of two tests: General test Achievement-based test. The General Test has 12 criteria, while the Achievement Test has two. There is a cut-off score for the General Test, and candidates are advised to assess their chances before applying. General test criteria: Age Applicant must be 50 years of age or younger. Master’s or PhD degree from a recognized university. Master’s or PhD degree must be in STEM (science, technology, engineering, or mathematics). Applicant must be bilingual, both spoken and written. Proficiency in English, both spoken and written, is mandatory. At least five years of work experience at the graduate or professional level. At least three years of experience in multinational companies or reputable enterprises such as The Global 2000, Fortune Global 500, and Hurun China 500 companies. At least three years of experience in the fields of innovation and technology, finance, or international trade. At least two years of international work experience at the graduate or professional level. Must have annual income of HK$1 million or more, or equivalent in foreign currency, in the year prior to application. Own a business with annual profits of HK$5 million or more, or equivalent in foreign currency, in the year prior to application. Own a listed company. General Test Pass Threshold To successfully pass the General Test, applicants must achieve 6 out of 12 possible points. This threshold allows applicants to apply through the online system. We recommend that candidates pre-assess their data to ensure that they meet the threshold. Please note that the threshold is subject to change without notice. Merit-Based Test The program is also open to individuals with exceptional talents and skills who can demonstrate outstanding achievement. For them, there is a separate merit-based test, with high requirements. Candidates who meet at least one of the criteria will be selected for further assessment by a panel. Applications that do not meet the criteria will be rejected. The assessment criteria include: Having received awards for exceptional achievements, such as an Olympic medal, Nobel Prize or other national/international awards.Признание работы заявителя коллегами или значительный вклад в развитие своей области, подтвержденный, например, наградой за достижения всей жизни. Stage 3: Qualifying Events Selection exercises are held regularly. Applicants who meet the prerequisites and pass the score (for the General Test) or one of the criteria (for the Attainment Test) are considered. Not all applications that meet the conditions will be accepted. Applications that meet more criteria have a greater chance of success. The Director of Immigration may seek advice from an assessment committee chaired by the Secretary for Labour and Welfare. The committee takes into account the needs of various sectors, the socio-economic needs of Hong Kong, and the background and qualifications of candidates. Selection is based on merit and individual circumstances. As processing of applications takes time, candidates may consider their applications pending until they receive notification of the result from the Immigration Department. Stage 4: Issuance of visa/entry permit Successful applicants will be issued a visa or entry permit in the form of an ‘e-Visa’ under the Hong Kong Residence Programme. <img loading="lazy" decoding="async" width="727" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-727x1024.webp" alt="General requirements for obtaining a work visa in Hong Kong under the QMAS program" class="wp-image-13943" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-727x1024.webp 727w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-213x300.webp 213w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-768x1082.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-1090x1536.webp 1090w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-1453x2048.webp 1453w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program-106x150.webp 106w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-General-requirements-for-obtaining-a-work-visa-in-Hong-Kong-under-the-QMAS-program.webp 1598w" sizes="auto, (max-width: 727px) 100vw, 727px" /> General requirements for obtaining a work visa in Hong Kong under the QMAS program General requirements for obtaining a work visa under the Immigrant Agreement for Graduates (IANG) program Applicants who are or have been overseas students (those who entered Hong Kong on a Student Visa or Entry Permit issued by the Director of Immigration) and have completed a full-time accredited bachelor’s degree or higher in Hong Kong may apply to stay or return and work in Hong Kong under the IANG programme. Also, graduates who have completed a full-time bachelor’s degree or higher in higher education institutions in the mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area jointly established by universities on the mainland and Hong Kong may apply to come and work in Hong Kong under the IANG programme. The IANG programme has no quotas and is not restricted to certain sectors. It does not apply to nationals of Afghanistan, Cuba and North Korea. For nationals of Laos, Nepal and Vietnam, the IANG only applies to those who: a) Has completed a bachelor’s degree or higher under an accredited full-time programme in Hong Kong funded by the University Grants Committee (UGC), except: Self-financing programs; Continuing and professional education programs; Exchange or short-term training programs. b) Is a graduate of the GBA campus. Overseas Graduates These are students who have completed a bachelor’s degree or above from a full-time accredited program in Hong Kong. Recent Graduates are those who apply within six months of completing their studies (date stated on the certificate) and are considered recent graduates. They can apply to stay and work in Hong Kong without a job offer. They are granted a 24-month time-limited stay, subject to immigration requirements. If the results of their studies have not yet been received, they can apply for an extension of stay. A confirmation from the educational institution that they have completed their studies is sufficient for the application. Late Graduates: Those who apply more than six months after completing their studies are also considered recent graduates. However, they need a job offer to return to work in Hong Kong. Applications will be approved if the job is at the graduate level and the salary is in line with the market rate. GBA Campus Graduates These are students who have completed a bachelor’s degree or higher in a full-time program in the Guangdong-Hong Kong-Macao Greater Bay Area jointly run by universities on the mainland and Hong Kong. Recent GBA Campus graduates are those who apply within six months of graduation and can apply for jobs in Hong Kong without a job offer. They are granted a 24-month stay with a time limit, subject to immigration requirements. A confirmation from the educational institution that they have completed their studies is sufficient to apply. Late Graduates – A job offer is required to work in Hong Kong. Applications will be approved if the job is at the graduate’s level and the salary is in line with the market rate. Family Members Applicants accepted under the IANG program can bring their spouse or civil partner and unmarried dependent children under 18 years of age to Hong Kong. This is possible if their relationship is officially recognized by the local authorities in the place of marriage. Applicants will sponsor their dependents in Hong Kong. The application for entry of a dependent may be approved if the following conditions are met: Proof of genuine relationship between the dependent and the sponsor. No negative records regarding the dependent. Ability of the sponsor to support the dependent at a level above the subsistence level and provide suitable accommodation in Hong Kong. This procedure does not apply to: Former residents of Mainland China who have resided in Macau for less than seven years unless they have obtained residence under the Unilateral Permit Scheme. Citizens of Afghanistan and North Korea. The duration of stay of dependants will be linked to that of their sponsors. Extension of stay is possible if the applicant continues to meet the criteria and the sponsor remains a Hong Kong resident. Dependents may work or study in Hong Kong in accordance with the current policy. <img loading="lazy" decoding="async" width="650" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-650x1024.webp" alt="General requirements for obtaining a Hong Kong work visa under the IANG program" class="wp-image-13947" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-650x1024.webp 650w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-191x300.webp 191w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-768x1209.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-976x1536.webp 976w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-1301x2048.webp 1301w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program-95x150.webp 95w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-General-requirements-for-obtaining-a-Hong-Kong-work-visa-under-the-IANG-program.webp 1598w" sizes="auto, (max-width: 650px) 100vw, 650px" /> General requirements for obtaining a Hong Kong work visa under the IANG program Top Talent Placement Program (TTPS) The TTPS program aims to attract highly skilled professionals and graduates from leading universities around the world to work in Hong Kong. It does not apply to nationals of Afghanistan, Cuba and North Korea. Eligibility Criteria Applicants are not required to have a job offer in Hong Kong when applying. They may be granted a stay of 36 months (Category A) or 24 months (Categories B and C) with a time limit. Applications are accepted under the following categories: Category A: Individuals with an annual income of HK$2.5 million or more in the previous year. Category B: Graduates from recognized universities with at least three years of work experience in the past five years. Category C: Graduates from recognized universities in the past five years with less than three years of work experience, subject to the availability of annual quota. An exception is made for overseas students who have obtained a bachelor’s degree in Hong Kong. Application Conditions An application may be approved if: There are no objections on security grounds and no serious criminal record. An annual quota is available (for Category C). Successful applicants will be granted an initial stay of 36 months (Category A) or 24 months (Categories B and C), with a time limit. Special Conditions for Chinese Nationals Chinese nationals holding PRC passports who reside overseas may apply if they: Have a permanent residence abroad. Have resided overseas for at least one year prior to applying and apply from overseas. <img loading="lazy" decoding="async" width="577" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-577x1024.webp" alt="Top Talent Placement Program (TTPS)" class="wp-image-13946" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-577x1024.webp 577w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-169x300.webp 169w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-768x1362.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-866x1536.webp 866w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-1155x2048.webp 1155w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-85x150.webp 85w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Top-Talent-Placement-Program-TTPS-scaled.webp 1444w" sizes="auto, (max-width: 577px) 100vw, 577px" /> Top Talent Placement Program (TTPS) Common factors in programs Regardless of the visa type, applicants must meet a number of requirements set by the Immigration Department to obtain a work permit in Hong Kong. Success in the application process depends on careful preparation of documents and compliance with the established rules. In this section, we will look at the key requirements that should be taken into account before submitting an application. Proof of qualifications All applicants are required to provide certified copies of diplomas and certificates. Documents written in languages ​​other than English or Chinese must be translated and certified. Failure to comply with these requirements may result in visa refusal. Financial stability of the employer or the candidate The employer or the candidate must prove their financial solvency. Under the TTPS, Category A requires an income of HK$2.5 million in the last year. 10 Common Mistakes When Applying for a Work Visa in Hong Kong The work visa application process requires attention to detail, and even a small mistake can lead to a delay or refusal. Many applicants encounter difficulties due to an incomplete understanding of the requirements or missing documents. Most refusals occur due to common mistakes that can be avoided if you know about them in advance. We will look at the most common mistakes and give you tips on how to avoid them so that you can successfully complete the application process. Incorrectly completed or incomplete application form: Rushing to complete the form may result in errors and delays in processing. Not meeting the criteria set by the Immigration Department: Failure to meet the requirements for a specific visa type, such as no genuine job offer or documentary evidence of financial means. Providing misleading or false information: Providing incorrect information may result in visa refusal and entry into the country. Failure to provide sufficient documents: Lack of necessary supporting documents, such as proof of employment or financial support. Misunderstanding of visa requirements: Unawareness of the need for a visa for citizens of certain countries or the length of visa-free stay. Missing deadlines: The Immigration Department gives a certain period of time to provide missing documents. Missing this deadline may result in the closure of the case Errors in the business plan or its unrealisticness (for Entry for Investment): Lack of comprehensive details in the business plan. Insufficient information about capital investments and business funds. Unrealistic indicators or unsupported data. Incomplete information: Applicants do not provide all required information or do not realize that certain information is required. Mistakes in work visa sponsorship: Ignoring sponsor requirements. Unreliable financial condition of the sponsor-employer. Choosing the wrong moment: It is important to choose the right time to submit your application. If you are not ready, make a list of shortcomings and correct them before submitting. Frequently Asked Questions (FAQ) What are the main types of work visas available in Hong Kong? There are several work visa programs in Hong Kong, including the General Employment Policy (GEP), the Assigned Mainland Skilled Trade Program (ASMTP), the Quality Migrant Admission Scheme (QMAS), the Immigration Arrangement for Graduates (IANG), and the Top Talent Program (TTPS). Each of these programs has its own unique requirements and targets different categories of professionals. What are the general requirements for a GEP work visa? To qualify for a GEP visa, you must have a university degree or advanced qualification, a job offer from a Hong Kong company, meet market wage standards, and have no legal issues. The employer must prove that the vacancy cannot be filled by local professionals. What are the common mistakes applicants make when applying for a work visa and how can they be avoided? Common mistakes include incorrectly completed forms, providing false information, incomplete documents, and not meeting the program criteria. To avoid these mistakes, it is important to carefully review the requirements, prepare all the necessary documents, and ensure that they are complete and accurate. What is the step-by-step process for applying for a Hong Kong work visa? The process involves collecting the necessary documents, completing the application form, submitting the application to the Hong Kong Immigration Department, waiting for the review (usually about four weeks), and receiving a decision. It is important to follow all instructions and meet the application deadlines. How do I extend and renew my Hong Kong work visa? An extension is possible if the employment conditions remain the same and the applicant continues to meet all the program requirements. An application for an extension must be submitted before the expiry of the current visa. Dependents can also extend their stay as long as the sponsor remains a Hong Kong resident. What is the Top Talent Placement Scheme (TTPS) and who can apply? The TTPS aims to attract highly skilled professionals and graduates from leading universities around the world to work in Hong Kong. Applicants are not required to have a job offer when applying. The program does not apply to nationals of Afghanistan, Cuba and North Korea Which categories of applicants can participate in the TTPS program? The program includes three categories: Category A: Individuals with an annual income of HK$2.5 million or more in the previous year. Category B: Graduates from recognized universities with at least three years of work experience in the past five years. Category C: Graduates from recognized universities in the past five years with less than three years of work experience, subject to the availability of an annual quota. Ask a question Hong Kong Residence Permit Through Employment
Residence Permit in Hong Kong for Entrepreneurs: Guide
This article outlines the process of obtaining a residence permit for entrepreneurs, including the main stages, requirements, and useful tips to increase the chances of successful application approval.
Hong Kong is one of the world’s leading financial centers, attracting entrepreneurs from around the globe due to its favorable tax regime and strategic location. For businesspeople looking to enter international markets and leverage all the advantages of Hong Kong, obtaining a residence permit becomes a key step. This article outlines the process of obtaining a residence permit for entrepreneurs, including the main stages, requirements, and useful tips to increase the chances of successful application approval. What you will learn from this guide: What visas are available for entrepreneurs in Hong Kong. How to register a company and obtain all necessary documents. How to properly prepare a business plan for a successful application. How to ensure your business complies with local legal standards. Features of visa renewal and obtaining permanent residency. Legal Aspects of Obtaining a Residence Permit in Hong Kong for Entrepreneurs In this context, a residence permit refers to a visa obtained based on conducting business in Hong Kong on behalf of a company or investing in a business where the applicant is the main shareholder or partner (Investor visa, entrepreneur visa, or business visa). The issuance of visas for entrepreneurs (investors) is regulated by the Hong Kong Immigration Department under the General Employment Policy (GEP). The program aims to attract skilled foreign professionals and entrepreneurs capable of contributing to the region’s economic development. Benefits of an Entrepreneur Visa in Hong Kong It’s worth noting that a visa is not required for conducting business in Hong Kong. Both shareholders and directors of a company can be non-residents without any requirements for permits or visas. However, when an entrepreneur wants to reside permanently in Hong Kong, conduct business, and work fully in the special administrative region, an appropriate visa is required. Holders of an investor (entrepreneur) visa have the right to legally reside, conduct business, and work in Hong Kong, allowing them to actively develop their business and fully leverage the advantages of localization and the local market. The visa provides the following additional benefits: Opening a personal current account in Hong Kong banks. Entrepreneurs with a residence permit and residence in Hong Kong can easily open a personal account in one of the local banks. This simplifies receiving dividends and salaries. Opening a company account in a Hong Kong bank. A company with a foreign shareholder legally residing in Hong Kong has a significantly better chance of opening an account in a local bank. Although business details are carefully reviewed, such a business disposition is more advantageous. Residing in Hong Kong without the need to leave. The investor visa allows entrepreneurs to reside permanently in Hong Kong without requiring regular departures, ensuring stability and comfort. Flexibility in residence. The absence of a requirement for permanent residence in Hong Kong to maintain the visa provides freedom of choice, allowing the visa to be retained without being tied to a location. Possibility to establish not only companies but also open a sole proprietorship. The main visa applicant can bring their spouse and unmarried children (under 18 years old) to Hong Kong. After successfully residing in Hong Kong for 7 years, you may be eligible to apply for Hong Kong citizenship. Hong Kong is rightly called the “gateway to Asia.” This city-state offers unique business opportunities due to the following factors: Low taxes. Hong Kong has one of the lowest profit tax rates (16.5%) and no capital gains tax. For small businesses with profits up to 2 million HKD, the rate is 8.25%. If the source of profit is outside Hong Kong, such profit is not taxed. Ease of doing business. Company registration takes only a few days, and the legal system protects the interests of foreign investors. All that is required is to meet basic requirements for filing forms and reports and conducting audits. International connections. Hong Kong is an international trade and financial center with direct access to the Chinese market and other regions of Asia. <img loading="lazy" decoding="async" width="568" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-568x1024.webp" alt="Benefits of Residence Permit in Hong Kong for Entrepreneurs" class="wp-image-13907" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-568x1024.webp 568w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-166x300.webp 166w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-768x1385.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-852x1536.webp 852w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-1136x2048.webp 1136w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs-83x150.webp 83w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-Benefits-of-Residence-Permit-in-Hong-Kong-for-Entrepreneurs.webp 1212w" sizes="auto, (max-width: 568px) 100vw, 568px" /> Benefits of Residence Permit in Hong Kong for Entrepreneurs Requirements for Obtaining an Investor Visa in Hong Kong To apply for an investor visa, certain conditions must be met. The Hong Kong Immigration Department pays special attention to how your business can contribute to the region’s economic development. This includes creating jobs for locals, actively collaborating with local companies, and promoting Hong Kong as an innovative and technological hub. Your contribution can become an important part of Hong Kong’s economic growth, opening new opportunities and prospects in this dynamic region. An application for an investor visa in the Hong Kong Special Administrative Region can be approved if the following conditions are met: Existing company. Typically, this is an already active business. However, under certain conditions, a startup may also be considered. No legal issues. The applicant has no criminal record and is not associated with any serious crimes. There are no security concerns for Hong Kong. Education and experience. The applicant should have a good education, usually a higher education in a relevant field. In special cases, good technical qualifications, proven professional abilities, and/or relevant experience and achievements documented may be accepted. Contribution to Hong Kong’s economy. The applicant must be able to make a significant contribution to Hong Kong’s economy. This is assessed based on the following criteria: Business plan. The applicant must provide a two-year business plan describing the nature of the business, market analysis, positioning, sales goals, and marketing strategy. Financial statement forecasts must also be presented to demonstrate the business’s viability. Business turnover. If the applicant already conducts business abroad or in Hong Kong, financial statements for the previous year must be provided. For new businesses, a two-year forecast is required to show potential turnover and development. Financial resources. The applicant must provide statements from personal and company accounts, as well as other evidence of financial stability, to confirm sufficient resources for conducting business. Investment amount. The investment amount in Hong Kong must be documented to show it is sufficient to support the business. Job creation. The applicant must describe the business’s organizational structure and indicate the number and level of jobs created locally. Introduction of new technologies or skills. If applicable, the applicant must explain how new technologies or skills will contribute to the development of high-value-added industries in Hong Kong and support its long-term development as a knowledge-based economy. <img loading="lazy" decoding="async" width="466" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-466x1024.webp" alt="Conditions for Approval of an Investor Visa in Hong Kong" class="wp-image-13908" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-466x1024.webp 466w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-136x300.webp 136w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-768x1689.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-698x1536.webp 698w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-931x2048.webp 931w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-68x150.webp 68w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Conditions-for-Approval-of-an-Investor-Visa-in-Hong-Kong_-scaled.webp 1164w" sizes="auto, (max-width: 466px) 100vw, 466px" /> Conditions for Approval of an Investor Visa in Hong Kong The main visa applicant can bring a spouse and unmarried children (under 18 years old) to Hong Kong. Step-by-Step Process for Applying for an Investor Visa Step 1: Company Registration To apply for a visa, you must register a company in Hong Kong. The registration process usually takes a few days. However, to increase the chances of successful consideration, it is important for the company to start active operations. The more stable and successful the company’s business model, the higher the likelihood of a positive visa decision. Step 2: Business Plan Preparation To apply for an investor visa, the entrepreneur must provide a detailed two-year business plan. This document should demonstrate the financial viability and development strategy of the business in Hong Kong. The more detailed and realistic your business plan the higher the chances of successful application consideration. Support it with evidence and artifacts to convince of the viability and prospects of your business. <img loading="lazy" decoding="async" width="584" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-584x1024.webp" alt="Business Plan Preparation for Investor Visa" class="wp-image-13900" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-584x1024.webp 584w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-171x300.webp 171w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-768x1346.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-876x1536.webp 876w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-1168x2048.webp 1168w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-86x150.webp 86w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Business-Plan-Preparation-for-Investor-Visa-scaled.webp 1461w" sizes="auto, (max-width: 584px) 100vw, 584px" /> Business Plan Preparation for Investor Visa Step 3: Document Collection for Submission To apply for a business visa, the entrepreneur must provide the following set of documents: Required documents from the applicant: Completed form ID999A. Applicant’s photograph. Valid identification, including pages of visited countries. Copies of diplomas, professional activity documents (proof of education and experience). Police clearance certificate Bank statements to demonstrate financial stability. Documents on business investments. Employment contract with a company in Hong Kong and appointment decision (if applicable). Required documents from the company: Business registration certificate. Licenses, business operation certificates. Employment contract between the company and the applicant (if applicable). Latest audited financial statements. Business plan with financial forecasts, profit and loss statement. Evidence of commercial activity: copies of contracts, invoices. Company presentation: commercial activity, history, product range, and markets. Evidence of hiring local employees (e.g., Mandatory Provident Fund contribution data). Company organizational structure. If sponsors are involved in obtaining the residence permit, their documents are also required. Sponsor – Individual: Copy of HK ID. Copy of Hong Kong citizen’s passport. Completed Form ID999B. Sponsor – Legal Entity: Completed form ID999B. Business registration certificate. Audited financial statements and tax return. Documents for family members: Section B of form ID999A (completed by dependents). Recent photographs of dependents. Valid identification of dependents. Proof of family relationships (marriage certificate, birth certificates). <img loading="lazy" decoding="async" width="694" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-694x1024.webp" alt="Required Documents for an Investor Visa in Hong Kong" class="wp-image-13901" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-694x1024.webp 694w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-203x300.webp 203w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-768x1133.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-1041x1536.webp 1041w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-1388x2048.webp 1388w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_-102x150.webp 102w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Required-Documents-for-an-Investor-Visa-in-Hong-Kong_.webp 1598w" sizes="auto, (max-width: 694px) 100vw, 694px" /> Required Documents for an Investor Visa in Hong Kong Step 4: Submission and Review of the Application The application process begins with submitting all necessary documents to the Hong Kong Immigration Department. After submission, the review stage begins, which typically takes 4 to 6 weeks. During this time, department specialists thoroughly examine the provided materials, assessing the applicant’s compliance with established requirements. In some cases, the department may request additional documents or information for a more detailed analysis. This may include clarifications on the business plan, financial forecasts, or other aspects of the company’s activities. A quick and accurate response to such requests can expedite the review process and increase the chances of successfully obtaining the visa. Step 5: Obtaining the Visa After successful application review, the entrepreneur receives a business visa, granting the right to reside and conduct business in Hong Kong. Initially, the visa is issued for up to one year, with the possibility of renewal upon meeting all conditions and successful company operations. This opens opportunities for further business development and strengthening market positions in Hong Kong. <img loading="lazy" decoding="async" width="533" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-533x1024.webp" alt="Stages of Reviewing a Business Visa Application in Hong Kong" class="wp-image-13902" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-533x1024.webp 533w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-156x300.webp 156w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-768x1476.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-799x1536.webp 799w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-1066x2048.webp 1066w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-78x150.webp 78w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/5.-Stages-of-Reviewing-a-Business-Visa-Application-in-Hong-Kong__-scaled.webp 1332w" sizes="auto, (max-width: 533px) 100vw, 533px" /> Stages of Reviewing a Business Visa Application in Hong Kong Visa for Family Members The Hong Kong investment visa provides entrepreneurs with the opportunity to bring their family, which is an important advantage for those planning long-term activities and wanting to ensure comfortable living for their loved ones. Documents for Obtaining a Visa for Family Members Applicants for dependent visas (spouses and children) must provide the following documents: Section B of form ID999A. Completed part of the form concerning family members. Recent photographs of dependents. Recent photos that meet the requirements for visa documents. Valid identification of dependents. Passport or other official identification documents. Proof of family relationships. Marriage and birth certificates confirming kinship with the main applicant. These documents will help confirm the family members’ right to obtain a visa and reside in Hong Kong with the entrepreneur. The application for a family member visa is submitted together with the main business visa application. The entire process may take up to 4-6 weeks. <img loading="lazy" decoding="async" width="634" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa-634x1024.webp" alt="Entrepreneur's Family Visa" class="wp-image-13903" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa-634x1024.webp 634w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa-186x300.webp 186w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa-768x1241.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa-950x1536.webp 950w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa-93x150.webp 93w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/6.-Entrepreneurs-Family-Visa.webp 1212w" sizes="auto, (max-width: 634px) 100vw, 634px" /> Entrepreneur’s Family Visa Who is a Sponsor? If the business is already established, partners often act as sponsors for the visa application. However, if the business is new and its shareholders and directors are not permanent residents of Hong Kong, there is a need to choose an appropriate sponsor. Entrepreneur Visa Sponsorship Who can be a sponsor? An ideal sponsor is a holder of a permanent Hong Kong identity card, having business or personal connections with the applicant and interested in the success of the business. Professional Sponsorship Consulting companies may offer their services as sponsors for a fee, providing professional support and expertise. Risks and Responsibility Sponsoring an entrepreneur visa carries certain risks for the sponsor, as they are responsible for potential repatriation expenses of the applicant. If you do not have close connections in Hong Kong, consider seeking professional assistance to address sponsorship issues, minimizing risks and ensuring successful visa acquisition. Visa Renewal and Obtaining Permanent Residency The visa in Hong Kong is initially issued for one year. After its expiration, entrepreneurs can apply for a visa renewal. Renewal is possible for 2-3 years if your business continues to operate actively and you meet all immigration service requirements. How to Renew the Visa: 1. Provide Financial Statements – Prepare detailed financial reports for the past period, demonstrating business stability and growth. The reports should have a positive auditor’s opinion. 2. Confirm Business Success – Prove that the business generates income and creates jobs by providing relevant documents and statistics. 3. Timely Application Submission – Submit the renewal application several months before the current visa expires to avoid interruptions in your legal status. After 7 years of residing in Hong Kong, you can apply for permanent residency. <img loading="lazy" decoding="async" width="475" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-475x1024.webp" alt="Visa Renewal and Obtaining Citizenship" class="wp-image-13904" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-475x1024.webp 475w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-139x300.webp 139w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-768x1656.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-712x1536.webp 712w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-950x2048.webp 950w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-70x150.webp 70w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/7.-Visa-Renewal-and-Obtaining-Citizenship-scaled.webp 1187w" sizes="auto, (max-width: 475px) 100vw, 475px" /> Visa Renewal and Obtaining Citizenship Frequently Asked Questions (FAQ) Do I need a visa to visit Hong Kong? Citizens of about 170 countries can visit Hong Kong visa-free for a period ranging from 7 to 180 days. For more detailed information on visa requirements, visit the “Hong Kong Visa Requirements” webpage. Do I need a visa to establish a business in Hong Kong? Non-residents can establish a business and hold a director position in a company without needing a visa. When does an entrepreneur need a visa in Hong Kong? If an entrepreneur plans to live and work in Hong Kong, they will need an appropriate visa. This visa allows staying in the country longer than a visa-free visit and engaging in activities not permitted under tourist status. How long does it take to process a residence permit application? The processing time usually takes 4 to 6 weeks, depending on the completeness of the provided documents and the workload of the immigration service. Can I bring my family? Yes, family members (spouses and minor children) can obtain visas to reside in Hong Kong. Documents proving family relationships must be provided. How to renew the visa after the first year? To renew the visa, you must prove that your business continues to operate and benefit Hong Kong’s economy. Submit the renewal application several months before the current visa expires. How to obtain permanent residency in Hong Kong? After 7 years of continuous residence in Hong Kong, you can apply for permanent residency if your business continues to operate actively and you meet all requirements. Ask a question Residence Permit in Hong Kong for Entrepreneurs
Business Registration in Hong Kong: BRC, BRN, UBI
According to the provisions of the Business Registration Ordinance (Chapter 310) ("BRO"), all individuals engaging in business activities in Hong Kong are required to register their business with the Business Registration Office of the Inland Revenue Department, except for exempted businesses.
Business Registration in Hong Kong Business registration in Hong Kong is a mandatory step for all companies planning to operate in this jurisdiction. Business registration in Hong Kong first became mandatory in the early 20th century with the introduction of the Companies Ordinance. Since then, when the colony was under British rule, the system of business registration and regulation has evolved towards simplifying processes and creating favorable conditions for attracting foreign investors. After the transfer of sovereignty to China in 1997, Hong Kong retained its independent economic and legal system under the “One Country, Two Systems” principle. This allowed it to maintain its status as an international business hub. According to the provisions of the Business Registration Ordinance (Chapter 310) (“BRO”), all individuals engaging in business activities in Hong Kong are required to register their business with the Business Registration Office of the Inland Revenue Department, except for exempted businesses. In Hong Kong, the term “business” encompasses any activity aimed at earning profit, including trade, commerce, craftsmanship, profession, or clubs. According to the Companies Ordinance (Chapter 622), every local or foreign company registered in Hong Kong, as well as open-ended fund companies and limited partnership funds registered or re-domiciled in Hong Kong, are considered to be conducting business and must be registered under the Business Registration Ordinance (BRO). This also applies to foreign corporations with a representative office or office in Hong Kong or leasing property in Hong Kong. To register a business in Hong Kong, companies must comply with the requirements of several key legislative acts: Business Registration Ordinance (BRO) – regulates the process of business registration and the issuance of the BRC. According to the BRO, every business entity in Hong Kong must register within 30 days of commencing operations. Companies Ordinance (CO) – defines the rules and requirements for the corporate structure of companies, their reporting, and the conduct of business in Hong Kong. Inland Revenue Ordinance – establishes the taxation rules for all registered companies and determines the procedure for filing tax returns and reports. <img loading="lazy" decoding="async" width="609" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_-609x1024.webp" alt="What Business is Subject to Registration in Hong Kong" class="wp-image-13832" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_-609x1024.webp 609w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_-178x300.webp 178w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_-768x1291.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_-914x1536.webp 914w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_-89x150.webp 89w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/1.-What-Business-is-Subject-to-Registration-in-Hong-Kong_.webp 1212w" sizes="auto, (max-width: 609px) 100vw, 609px" /> What Business is Subject to Registration in Hong Kong It is important to note that individuals employed by others are not required to register a business. Some types of businesses in Hong Kong are exempt from mandatory registration under the BRO. These include: Activities of approved charitable organizations, subject to certain conditions. Business in agriculture, horticulture, animal husbandry, or fishing, except for local and foreign registered companies. Shoe-shining business. Activities of hawkers requiring a license under the Hawker Regulation, except when the business is conducted inside a main building. Qualifying FiT business as defined in the Profits Tax Exemption (Feed-in Tariff Scheme) Order. When applying for company registration, it is considered that you are simultaneously applying for business registration. This requires submitting a notification to the Business Registration Office (IRBR1 for local companies, IRBR2 for foreign companies, IRBR4 for LPF) along with the prescribed business registration fee when filing with the Companies Registry. For an open-ended fund company, the notification (IRBR3) and the corresponding fee must be submitted to the Securities and Futures Commission upon registration or re-domiciliation. Business Registration Certificate in Hong Kong (BRC) The Business Registration Certificate (BRC) is a document issued by the Inland Revenue Department (IRD) of Hong Kong. It confirms that your enterprise is registered with the Inland Revenue Department (tax authority) of Hong Kong and is authorized to conduct business activities. A valid business registration certificate must be displayed prominently at the business address and be ready for official inspection upon request. If the certificate is issued electronically, a printed copy must be displayed. This is a mandatory requirement under Hong Kong law, and non-compliance may result in penalties. Key information contained in the BRC: Registered business name. Business Registration Number (BRN). Business registration address. Nature of business. Date of issue and validity period of the certificate. Amount of fee and levy paid.) <img loading="lazy" decoding="async" width="584" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC-584x1024.webp" alt="Example of Business Registration Certificate (BRC)" class="wp-image-13833" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC-584x1024.webp 584w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC-171x300.webp 171w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC-768x1347.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC-876x1536.webp 876w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC-86x150.webp 86w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/2.-Example-of-Business-Registration-Certificate-BRC.webp 946w" sizes="auto, (max-width: 584px) 100vw, 584px" /> Example of Business Registration Certificate (BRC) It is important to remember that obtaining a Business Registration Certificate does not guarantee compliance with all relevant laws and regulations. In addition to registration, a business owner may need to obtain additional licenses or professional qualifications to legally conduct activities. In case of doubt, it is recommended to seek advice from the relevant authorities. The Business Registration Certificate in Hong Kong must be renewed annually, and the corresponding government fee is payable. <img loading="lazy" decoding="async" width="937" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Types-of-Certificates-for-a-Hong-Kong-Company-937x1024.webp" alt="Types of Certificates for a Hong Kong Company" class="wp-image-13834" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Types-of-Certificates-for-a-Hong-Kong-Company-937x1024.webp 937w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Types-of-Certificates-for-a-Hong-Kong-Company-274x300.webp 274w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Types-of-Certificates-for-a-Hong-Kong-Company-768x840.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Types-of-Certificates-for-a-Hong-Kong-Company-137x150.webp 137w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/3.-Types-of-Certificates-for-a-Hong-Kong-Company.webp 1212w" sizes="auto, (max-width: 937px) 100vw, 937px" /> Types of Certificates for a Hong Kong Company BRN (Business Registration Number, Tax ID) The BRN (Business Registration Number) is part of the Business Registration Certificate, specifically a unique eight-digit number assigned to each company in Hong Kong by the Inland Revenue Department. It is used to identify the company with the tax authority when filing tax returns, opening bank accounts, and performing other administrative tasks. However, the BRN itself does not grant the right to conduct business; a valid BRC is required for that, which must be renewed annually. The BRN remains with the company permanently, while the certificate is replaced annually. Unique Business Identifier (UBI) The Unique Business Identifier (UBI) is a number used for the unambiguous identification of a legal entity. This number is introduced to reduce errors associated with using different identifiers for the same entity. The UBI facilitates communication and data exchange between government departments and businesses, helping the Hong Kong government improve the provision of public services and regulate organizational activities more effectively. Additionally, it helps companies more efficiently present their identity to business partners. Thanks to the joint efforts of the Inland Revenue Department, from December 27, 2023, the company registration number in Hong Kong (BRN), representing the first 8 digits of the registration certificate number assigned by the Inland Revenue Department, will be accepted as the Unique Business Identifier (UBI). This number will be used as a unique identifier for submitting forms and documents to the Companies Registry, as well as for interactions with government departments and businesses. For new companies registered from this date, the BRN will be indicated as the number on the Business Registration Certificate. Existing companies registered before December 27, 2023, will receive a letter from the Companies Registry informing them of the upcoming changes and the assignment of the BRN. The Unique Business Identifier (UBI), presented as the Business Registration Number (BRN), will be used in the following cases: For communication with government departments and businesses. When submitting relevant forms and documents to the Companies Registry. As a key number for electronic registry search services to find and identify a company or legal entity. <img loading="lazy" decoding="async" width="554" height="1024" src="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies-554x1024.webp" alt="Example of Notification Letter from the Register of Companies" class="wp-image-13835" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies-554x1024.webp 554w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies-162x300.webp 162w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies-768x1420.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies-831x1536.webp 831w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies-81x150.webp 81w, https://www.vitaliberta.hk/wp-content/uploads/2025/03/4.-Example-of-Notification-Letter-from-the-Register-of-Companies.webp 945w" sizes="auto, (max-width: 554px) 100vw, 554px" /> Example of Notification Letter from the Register of Companies Government Fee for Business Registration The fee for business registration varies depending on the time and duration. We can look at historical data: Time period Duty amount in HKD 01.04.2019 – 16.06.2022 250 17.06.2022 – 31.03.2023 150 01.04.2023 – 31.03.2024 2150 01.04.2024 – 31.03.2025 2200 The fee is paid at the time of company registration (upon the creation of a legal entity) and by the company’s anniversary date (for annual renewal). The government fee for Business Registration in 2024-2025 is Period Fee amount for 1 year, HKD Fee amount for 3 years, HKD 01.04.2024 – 31.03.2025 2200 5780 HKD After successful payment of the fee, a valid Business Registration Certificate (BRC) is issued by the Inland Revenue Department for the corresponding paid period and is sent to the company’s registered address in Hong Kong, typically within 7 days. If the certificate is not renewed on time, the company management faces a maximum penalty of up to 5,000 HKD and possible criminal prosecution with imprisonment for up to one year. Additional Licenses and Permits In some cases, business registration in Hong Kong is not limited to obtaining only the BRC. Depending on the nature of your company’s activities, you may need additional licenses or permits. This is especially relevant for companies operating in sectors such as finance, retail, or education. Example 1: Restaurant Licenses If you plan to open a restaurant or café in Hong Kong, you will need a restaurant business license issued by the Food and Environmental Hygiene Department (FEHD). Example 2: Asset Management License Financial companies engaged in asset management or investments are required to obtain a license from the Securities and Futures Commission (SFC). This license confirms that the company meets all standards for conducting activities in the financial and investment sector. Example 3: License for Educational Institutions To open educational centers or schools in Hong Kong, a license must be obtained from the Education Bureau (EDB). This license confirms compliance with educational standards and ensures the quality of educational services provided. Frequently Asked Questions (FAQ) What is a Business Registration Certificate (BRC)? <span class="NormalTextRun SCXW262508625 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">The Business Registration Certificate (BRC) is a document issued by the Inland Revenue Department of Hong Kong, confirming that your enterprise is registered and authorized to conduct business activities. Where should the BRC be located? <span class="NormalTextRun SCXW73134939 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">A valid Business Registration Certificate must be displayed prominently at the business address and be ready for official inspection. If the certificate is issued electronically, a printed copy must be displayed. What information does the BRC contain? – Registered business name. – Business Registration Number (BRN). – Business registration address. – Nature of business. – Date of issue and validity period of the certificate. – Amount of fee paid. How often must the BRC be renewed? <span class="NormalTextRun SCXW182183929 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">The Business Registration Certificate must be renewed annually, with the corresponding government fee paid. What is the BRN? <span class="NormalTextRun SCXW141788142 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">The BRN (Business Registration Number) is a unique eight-digit number assigned to each company in Hong Kong for identification with the tax authority. It is included in the Business Registration Certificate and is an integral part of it. What is the Unique Business Identifier (UBI)? <span class="NormalTextRun SCXW93307815 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">The Unique Business Identifier (UBI) is a number for the unambiguous identification of a legal entity, introduced to reduce errors and improve interaction between government departments and businesses. From December 27, 2023, the BRN is accepted as the UBI. You could say that the UBI is an enhanced BRN. What is the current business registration fee? <span class="NormalTextRun SCXW144078207 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">For the period from April 1, 2024, to March 31, 2025, the fee is 2,200 HKD for a 1-year certificate and 5,780 HKD for a 3-year certificate. How has the fee changed over recent years? – 01.04.2019 – 16.06.2022: 250 HKD – 17.06.2022 – 31.03.2023: 150 HKD – 01.04.2023 – 31.03.2024: 2150 HKD – 01.04.2024 – 31.03.2025: 2200 HKD When is the business registration fee paid? <span class="NormalTextRun SCXW254996523 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">The fee is paid at the time of company registration (upon the creation of a legal entity) and annually by the company’s anniversary date when renewing the certificate. What happens after the fee is paid? <span class="NormalTextRun SCXW153110256 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">After successful payment of the fee, the Inland Revenue Department issues a valid Business Registration Certificate (BRC) for the paid period. The certificate is usually delivered to the company’s registered address in Hong Kong within 7 days. What are the penalties for violating business registration laws? <span class="NormalTextRun SCXW158008061 BCX0" data-ccp-parastyle="По умолчанию" data-ccp-parastyle-defn="{"ObjectId":"4e9808de-bd81-4f86-a00c-d9cbd9c1937d|207","ClassId":1073872969,"Properties":[469775450,"По умолчанию",201340122,"2",134233614,"true",469778129,"919",335572020,"1",469777841,"Helvetica Neue",469777842,"Helvetica Neue",469777843,"Helvetica Neue",469777844,"Helvetica Neue",469769226,"Helvetica Neue",335551500,"0",268442635,"24",335559740,"288",201341983,"0",335559738,"160"]}">If the certificate is not renewed on time, the company faces a maximum penalty of up to 5,000 HKD and possible criminal prosecution with imprisonment for up to one year. Ask a question Business Registration in Hong Kong