China Company Registration: Timeline & Cost Breakdown
One of the first questions every foreign investor asks is: “How long does it take to set up a company in China, and how much will it cost?” In 2026, the answer is more nuanced than ever. While digitalization has accelerated government processing times, stricter compliance checks on address validity and banking onboarding can introduce unexpected delays if you are unprepared.
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This guide focuses on a standard WFOE setup, the most common structure for foreign investors.
If you’re still deciding whether WFOE is right vs other options, see our sibling guide: /{locale}/blog/wfoe-vs-jv-vs-rep-office
For the full step-by-step legal requirements and dossier checklist, refer to our pillar guide: /{locale}/blog/wfoe-registration-china-2026
TL;DR
Realistic timeline: Expect 6–8 weeks for a fully operational WFOE (license + bank account + tax activation). “Fast-track” claims of 2 weeks usually exclude banking and tax steps.
True cost structure: Government fees are negligible (often <$100). Professional service fees, notarization/legalization ($500–$2,500+), and address/banking reality are the real budget drivers.
Hidden delays: The biggest bottlenecks are often overseas document legalization and bank onsite inspections in China. Start document prep ~4 weeks early.
Who this is for
CFOs & finance directors building CAPEX/OPEX budgets for China market entry.
Project managers creating realistic Gantt charts and launch timelines.
Startup founders assessing cash flow before committing to lease or hiring.
Legal counsels advising clients on practical realities vs theoretical law.
Investors evaluating speed-to-market for portfolio companies.
Key checklist (budget & time planning)
Before starting, make sure these items are accounted for (this avoids the most common “surprise delays”):
Document legalization buffer: add 3–4 weeks for notarizing and legalizing shareholder documents in your home country.
Bank account reality: factor 1–2 extra weeks for onsite inspection and AML checks.
Address readiness: secure a compliant commercial lease early; “virtual addresses” often fail bank checks.
Capital injection plan: even if capital isn’t paid upfront, have a credible 5-year plan ready for the bank.
Seal carving: budget for the official set of 4–5 chops (Company, Finance, Legal Rep, Invoice, Contract).
Translation: certified Chinese translations of foreign documents are mandatory and chargeable per page.
Step-by-step / How it works
The total timeline is a sum of parallel and sequential steps. Here is the realistic 2026 workflow:
Document preparation & legalization (home country): 3–4 weeks (parallel). Notarize and legalize passports/corporate documents. This happens before filing in China.
Name reservation & FDI reporting (China): 3–5 working days. Submit name options and file initial FDI data.
Business license application: 5–7 working days. Submit dossier to AMR; approval yields the Business License.
Carving official seals: 1–2 working days. Register and carve chops at the police-designated center.
Bank account opening: 10–15 working days. Includes application, onsite inspection by the bank, and internal compliance checks (most variable step).
Tax registration & activation: 3–5 working days. Register with tax bureau and apply for e-invoice (fapiao) access.
Social security & housing fund: 2–3 working days. Final activation for hiring staff.
Total estimated time: 6–8 weeks from the moment complete, legalized documents are in hand.
Documents / Inputs (if applicable)
The complexity of your documents directly influences cost and time:
Individual shareholders: passport notarization is usually cheaper and faster than corporate documents.
Corporate shareholders: typically requires notarizing the Certificate of Incorporation, Articles of Association, and Board Resolutions.
Lease agreement: must be a formal contract with a property ownership certificate. “Informal” leases often lead to rejection and re-leasing costs.
Timeline & cost (if applicable)
Timeline summary (typical)
Phase | Duration | Key dependency |
|---|---|---|
Preparation (overseas) | 3–4 weeks | Local notary + legalization route efficiency |
License & seals | 1–2 weeks | AMR processing speed (varies by city) |
Banking | 2–3 weeks | Bank schedule for onsite inspection & compliance |
Tax & HR activation | ~1 week | Completeness of lease and ID docs |
TOTAL | 6–8 weeks | Document readiness is critical |
Cost drivers (typical)
Government fees: ~$0–$50 (license is often free; small fees for seals).
Notarization & legalization: $500–$2,500+ depending on country and number of documents.
Professional service fees: $2,000–$5,000+ for standard WFOE setup; increases for restricted industries, multiple shareholders, or special licenses (e.g., ICP, Food Ops).
Registered capital: $0 upfront cash, but a liability on the balance sheet. Must be “reasonable” for your business model.
Address rental: varies widely by city/zone and whether you need a physical office that passes bank inspection.
Bank charges: ~$200–$500 for account opening and annual maintenance.
Common mistakes
Avoid these financial and scheduling pitfalls:
Underestimating legalization time: you can’t file in China without the original legalized hard copies.
Choosing the cheapest address: non-compliant “virtual addresses” often lead to bank account rejection and forced re-work.
Ignoring “reasonable” capital: too low raises bank solvency red flags; too high increases liability.
Overlooking translation costs: certified translations are mandatory and usually charged per page.
Delaying tax activation: holding a license without tax activation prevents invoicing and can lead to penalties.
FAQ
Q1：Is this different for WFOE vs JV vs Rep Office (or by city)?
Yes. Rep Offices can be faster and cheaper, but are limited in function. JVs usually take significantly longer due to partner negotiations and governance complexity. WFOEs are often the middle ground.
City differences: Shanghai/Beijing can be efficient but strict on address and banking. FTZs may speed up licensing, but banking timelines are usually similar. Some inland cities may be more flexible on capital and address, but processing can be slower.
Q2：What should I prepare before starting (documents, approvals, internal roles)?
To minimize delays, prepare these before engaging an agent:
Decide registered capital amount and contribution timeline.
Lease LOI or signed lease for a compliant address.
Identify key personnel (Legal Rep, Supervisor, Finance) and prepare ID copies.
Initiate notarization/legalization immediately.
Q3：What are the most common pitfalls that cause delays or rejection?
The top three are:
Document errors (mismatched names, missing stamps, incorrect legalization route).
Address failures (bank onsite inspection issues; lease/address mismatch).
Business scope issues (including items that trigger additional pre-approvals without permits).
Q4：Can I “start the China process” while documents are being legalized overseas?
You can draft the business scope, shortlist names, and prepare local materials, but you generally cannot complete the filing without the legalized originals. Treat overseas document prep as a critical path item.
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