Register and Run Your Company in Mainland China

01 · ChinaMNC

Why China for Danish Companies

China is one of the world's largest consumer and industrial markets, and Danish companies are already known there in areas such as shipping, energy, design, food ingredients, life sciences and industrial equipment. For many Danish businesses the question is not whether to look at China, but how to do it without overcommitting before the market is understood.

A local entity lets you invoice Chinese customers in renminbi, hire staff directly, hold licences and contracts in your own name, and manage suppliers and distribution more closely. It also signals long-term commitment to partners and customers, which matters in relationship-driven sectors.

At the same time, China is not a single market. Shanghai, Shenzhen, Beijing and smaller industrial hubs differ in customer expectations, regulation and cost. Danish founders should treat entry as a staged process: validate demand, choose the right structure, then scale. Budget for travel, interpretation and local professional support, and plan for a market where personal relationships and patience often matter more than a fast launch.

02 · ChinaMNC

WFOE, Joint Venture or Representative Office

The three structures most Danish companies consider are the wholly foreign-owned enterprise (WFOE), the joint venture (JV) and the representative office (RO). Each fits a different stage and risk profile.

• WFOE: A limited liability company owned by your Danish parent or by you personally. It can conduct approved business activities, invoice customers, employ staff and repatriate profits subject to tax and foreign exchange rules. This is the most common route for companies that want to trade, manufacture, provide services or manage operations directly.
• Joint venture: A company shared with a Chinese partner. Useful where local licences, land, distribution or government relationships are essential, but it requires clear governance, capital contribution and exit terms. Choose partners carefully and document expectations.
• Representative office: A liaison office that cannot earn revenue directly. It suits market research and coordination, but its scope is narrow and it still involves registration and compliance.

The right choice depends on whether you need to invoice locally, hire staff, hold licences or work through a partner.

03 · ChinaMNC

The Five-Step Registration Process

Registration in mainland China generally follows a sequence, though the exact order and requirements vary by city and by business scope. Treat these five steps as a planning framework.

• Step 1 — Define the business. Clarify activities, expected customers, staffing and capital. Draft a business scope that matches what you will actually do, because it shapes later licensing.
• Step 2 — Choose the structure and location. Decide between WFOE, JV or RO, and select a city and district. Check whether your activities need special permits before committing to premises.
• Step 3 — Prepare and notarise documents. Gather parent company papers, identity documents and translations. Danish documents often need notarisation and consular legalisation or an apostille, depending on current rules.
• Step 4 — File for the business licence. Submit the name, scope, address, capital and governance details to the market regulation authority, then complete seals, tax and other registrations.
• Step 5 — Open banking and start compliance. Set up the capital and RMB accounts, register with tax and, where relevant, customs, then begin bookkeeping, payroll and reporting.

Expect local variation and allow time for document corrections.

04 · ChinaMNC

Documents Danish Founders Typically Need

Document requirements differ by city and structure, but Danish founders should prepare a core set early. Missing or inconsistent paperwork is one of the most common causes of delay.

• Parent company documents: certificate of registration, articles of association, and board resolutions approving the China investment. These usually need notarisation and legalisation or apostille, plus Chinese translation.
• Identity documents: passports for legal representatives, directors, supervisors and shareholders, with clear copies and translations where required.
• Proof of address: a lease or property documents for the registered office, plus landlord identification and ownership evidence.
• Name and scope: proposed Chinese company names and a business scope drafted to match actual activities and licensing needs.
• Capital and governance: details of registered capital, contribution schedule, and the appointment of the legal representative and supervisors.
• Application forms: signed filings for the market regulation authority, tax and other agencies.

Keep original and translated versions consistent. Where a document is signed abroad, confirm the current legalisation route before sending it to China.

05 · ChinaMNC

Registered Address, Business Scope and Licences

Every mainland entity needs a registered address, and in practice this is more than a formality. The address must be a property that can legally host your type of business, and the landlord must provide ownership and lease documents. Some cities allow virtual or shared registered addresses for certain activities, while manufacturing, food, education and healthcare usually require physical premises that pass inspection.

Business scope is the formal description of what your company may do. Write it to cover your real activities without overreaching: too narrow and you may need to amend it later; too broad and you may trigger extra approvals. Certain activities require pre- or post-licensing, such as food operations, logistics, education, medical devices or online services.

If you plan to import or export, confirm customs registration and product-specific requirements. Danish companies in food, design and industrial equipment should check labelling, certification and testing rules before shipping. Choose a location with the right district support, and verify zoning and fire-safety requirements for any premises you intend to occupy.

06 · ChinaMNC

Banking, Tax and Visas

After registration, the practical work of operating begins. Open a capital account and an RMB basic account with a bank that understands foreign-invested companies; expect due diligence on your shareholders and business. Keep capital contributions and foreign exchange transactions documented, because banks and regulators may ask for supporting contracts and invoices.

Tax registration is required, and your obligations depend on activity. Typical considerations include corporate income tax, value-added tax, stamp duty and withholding tax on payments abroad, plus monthly or quarterly filings. Engage a local accountant early to set up bookkeeping, invoicing and payroll, and to confirm whether any incentives apply in your district.

For Danish staff, the main routes are a work permit and residence permit for foreign employees, and business visas for short visits. The process usually involves a medical check, police clearance and degree or experience documents, with local variation. Plan visa timing around registration, because the legal representative and key staff may need to be present for bank and tax steps.

07 · ChinaMNC

Common Mistakes to Avoid

Many entry problems are predictable. Danish founders can reduce risk by watching for these common mistakes.

• Choosing a structure before the model is clear. A WFOE, JV and RO serve different purposes; pick based on customers, licensing and staffing, not habit.
• Underestimating documents. Notarisation, legalisation and translation take time, and inconsistent names or addresses cause rejections.
• Ignoring business scope. A vague or mismatched scope can block invoicing or trigger licensing problems later.
• Treating the registered address as a formality. Confirm the property can host your activity and that the landlord's papers are complete.
• Delaying tax and banking setup. Late bookkeeping or unclear capital flows create avoidable compliance issues.
• Assuming timelines. Requirements and processing vary by city; build slack into contracts and hiring plans.
• Skipping local advice. A qualified local lawyer or accountant can flag issues before they become expensive.

Start with a written plan, a realistic budget and named local support.