Frequently Asked Questions

Yes. Outside the sectors on the Foreign Investment Negative List, foreign investors receive pre-establishment national treatment and may set up a wholly foreign-owned enterprise, registered and regulated on the same basis as domestic companies. Sectors on the list carry equity, management or approval conditions. Check the current list before finalising your business scope to avoid redesigning the structure later.

The negative list sets out sectors where foreign investment is restricted or prohibited; outside it, domestic and foreign investment are treated alike with no extra access approval. The 2024 edition took effect on 1 November 2024 and removed all remaining foreign-investment restrictions in manufacturing. Listed sectors still carry specific equity or management conditions. Always check the latest official version.

The main steps are: company name filing, submission of establishment documents, collection of the business licence, seal engraving, tax registration and invoice application, FX registration and bank account opening, and the foreign-investment information report (submitted through the registration system). With documents ready this usually takes three to six weeks; licensed sectors, notarisation and legalisation of overseas documents, or special industries add time, subject to the authorities' actual processing.

Most sectors have no minimum registered capital and follow a subscribed-capital regime; set an amount consistent with your scale, sector requirements and financing plan, and specify the contribution schedule in the articles. Regulated sectors such as banking, insurance and value-added telecom may impose paid-in or minimum thresholds. Foreign capital is remitted after FX registration at a bank and must be used for declared purposes, under the latest rules of the registration and FX authorities.

Industrial land is usually granted through public tender, auction or listing. Alternatively, lease standard factory space in a park or convert existing buildings, which usually gets production running sooner. Parks help match land or premises, model costs and coordinate approvals. A lease can be delivered in one to two months; build-to-suit typically takes over a year from land acquisition to production, longer where farmland conversion, environmental assessment and construction permits are involved. Procedures follow the natural resources authorities.

The employer applies first for a foreigner work permit notification; the employee enters on a Z visa and then applies for the work permit and a work-type residence permit. Documents usually include proof of education and work experience, a criminal record certificate, a medical check, the employment contract and photographs, with processing typically taking four to eight weeks. Dependants may apply for corresponding residence permits with proof of relationship. Conditions and timing follow the authorities' latest rules.

The statutory corporate income tax rate is 25%; companies qualifying under the Western Development encouraged-industries policy may be taxed at 15% (see our Policies page — final eligibility rests with the authorities). After-tax profits can be repatriated, generally subject to 10% withholding tax, which may be reduced or deferred under tax treaties or reinvestment rules. Complete the annual tax settlement and filings before remitting, and confirm the route with your bank and tax adviser in advance.

Companies can handle cross-border receipts and payments for capital, foreign debt and trade through banks. Qualifying groups may run centralised cross-border cash operations, consolidating collections, payments and foreign-debt quotas. The pilot free trade zone adds facilitation for cross-border financing and trade settlement. RMB settlement can reduce conversion costs; have your bank and adviser design the account structure and settlement route, and complete the required registrations.

The Personal Information Protection Law, Data Security Law and Cybersecurity Law form the basic framework. When personal information leaves China, the route depends on volume, entity type and scenario: a security assessment, standard contract or certification. Handling important data or crossing volume thresholds triggers additional obligations. Map your data, classify it and complete a compliance assessment before systems go live, and design privacy notices and consent flows at the same time. Follow the authorities' latest rules.

New projects require an environmental impact assessment, with the category set by sector, scale and site sensitivity; energy-intensive projects also need an energy review and secured energy quotas. These two items are often on the critical path for manufacturing projects, so assess them at site-selection stage rather than after design. Yunnan's high share of renewable power is an advantage for exporters needing low-carbon electricity or green certificates. Final requirements follow the environment and development authorities.

RCEP has been in force since 1 January 2022. Its cumulative rules of origin let you aggregate originating materials from member states, making origin thresholds easier to meet; a certificate of origin or an approved exporter declaration unlocks preferential rates. The saving depends on the HS code, sourcing and each member's tariff schedule, so it must be modelled product by product. Do the origin modelling before fixing prices and sourcing, and keep complete records.

Expatriate employees can apply for private-affairs or family-visit residence permits for spouses and minor children, using proof of relationship plus the principal applicant's work and residence documents; this usually runs alongside the work permit process. Kunming and other cities have international and bilingual schools offering international curricula; enquire early and apply per each school's requirements. Documents and timing follow the exit-entry authorities and the schools.

Land-use rights cannot outlast the remaining contract term — commonly 10–20 years with renewal options. Standard factories in parks are usually leased for three to five years. Confirm use, filing and exit terms with local agriculture or natural-resources authorities and the park before signing.

It depends on the sector and process: some projects only need a registration form, others a report form or a full report. Confirm the park's sector focus and environmental requirements before signing a lease, so you do not end up unable to operate.

Yes. After registration, complete foreign-exchange registration and open a basic account plus an FX account. Profit repatriation and capital conversion follow FX regulations; banks and the FX authority set the documents.

Dependant residence permits are available for spouses and minor children. Contact international or bilingual schools early for places, and allow one to two months for processing.