Published by ChinaMNC · Longan

Longan company registration: common questions answered

Practical answers to common questions foreign founders ask about registering a company in Longan, Shenzhen — entity types, capital, address, process, taxes and timelines, with a general-information disclaimer.

Longan company registration: common questions answered

Longan is a district of Shenzhen in Guangdong Province, and many foreign founders considering a China presence look at it because of its position within one of the country's major technology and manufacturing hubs. This article answers common questions about registering a company there. It is general information for planning purposes only; rules and procedures change, and every case differs.

Why do foreign founders consider Longan?

Longan sits within Shenzhen, a city with a large electronics, hardware and logistics ecosystem. Founders often ask whether they must register in the city center. In practice, the choice of district affects practical matters such as available registered addresses, local incentives that may exist at a given time, and proximity to suppliers or staff. Any incentive or policy should be verified directly with the relevant authorities or a qualified local advisor before relying on it.

What type of entity should I register?

The most common structures foreign founders ask about are:

• Wholly foreign-owned enterprise (WFOE) — a limited liability company owned entirely by foreign investors. Common for firms that want full control and intend to invoice customers in China.
• Joint venture (JV) — a company shared with one or more Chinese partners. Sometimes chosen where local partnerships, licenses or market access matter.
• Representative office (RO) — a liaison office that cannot engage in profit-making business activities. Suitable only for market research or coordination.
• Branch of a foreign company — an extension of the overseas parent rather than a separate legal person.

Most founders who plan to hire, contract and generate revenue in China choose a WFOE. The right choice depends on your business activities, because some sectors are restricted or require specific approvals under the applicable negative list and licensing rules.

Can a foreign founder own 100% of the company?

In many sectors, yes. However, foreign investment is governed by China's foreign investment regime and sector-specific rules. Some activities are prohibited, some require a Chinese partner, and some require licenses. Confirm your specific business scope against the current rules before committing.

What is the registered capital requirement?

Registered capital is the amount shareholders commit to contribute to the company. Founders frequently ask for a fixed minimum. There is no single universal number that applies to every company; requirements depend on the entity type, the business scope, and any sector-specific rules. Under China's Company Law framework, capital contribution timelines have been subject to reform, so verify the current rules at the time of registration.

Practical points:

• Choose a capital amount you can realistically contribute within the required period.
• Some licenses or tenders may reference registered capital, so consider your sector's expectations.
• Capital is generally contributed in RMB or a convertible currency, subject to foreign exchange procedures.

Do I need a physical office in Longan?

Companies need a registered address, which is the legal address recorded with the authorities. Options commonly discussed include leasing commercial office space, using an incubator or serviced office that permits registration, or other address arrangements permitted under local rules. A pure mailbox arrangement is generally not sufficient. Verify that any address you use is approved for company registration and suits your business scope and licensing needs.

What documents will I need?

Requirements vary, but founders typically prepare:

• Passport copies of foreign shareholders and legal representatives.
• Proof of the overseas parent company's existence, often notarized and legalized or apostilled, depending on the jurisdiction.
• Articles of association and incorporation documents.
• Proposed company name, business scope, registered address and capital details.
• Appointment documents for directors, supervisors and the legal representative.

Because notarization and legalization steps can take time, start document preparation early. Exact formalities depend on the country of origin and current practice.

What is the registration process?

While details vary, the sequence usually includes:

1. Name approval — reserve a company name that complies with naming rules.
2. Foreign investment information reporting — where applicable, file through the relevant system.
3. Business license application — submit entity details to the market regulation authority.
4. Seal carving — company seals are made and registered.
5. Bank account opening — open the basic RMB account and any foreign currency account.
6. Tax registration and invoicing setup — register with tax authorities and arrange invoicing capability.
7. Capital contribution and foreign exchange formalities — remit capital in line with registration and banking rules.

Depending on the sector, additional licenses may be required before you can operate legally.

How long does registration take?

Timelines vary widely depending on document readiness, the sector, the district's processing, and bank procedures. Founders should build in time for notarization and legalization abroad, which is often the longest step. Ask your advisor for a realistic estimate for your specific case rather than assuming a fixed number of days.

What about taxes and compliance?

Chinese companies are generally subject to corporate income tax, value-added tax where applicable, and other taxes depending on activity. Rates and preferential policies depend on the company's profile, location and industry, and they change. Founders should also plan for ongoing compliance: bookkeeping, statutory filings, annual reporting, and payroll obligations once staff are hired. Engage a qualified accountant or tax advisor to confirm your obligations.

Do I need to be physically in China to register?

Many steps can be handled remotely with a power of attorney and properly prepared documents, but some processes — such as certain bank account openings — may require the legal representative or authorized person to be present. Confirm current bank and authority requirements early, as practices differ between institutions.

What about hiring staff and the legal representative?

The legal representative is the person authorized to act for the company and carries legal responsibilities, so choose carefully. Foreign employees generally need a work permit and residence permit; the company must be set up and able to sponsor these. Local employment, social insurance and tax registration rules apply to all hires.

Key takeaways for foreign founders

• Choose the entity type around your business activities, not just tax assumptions.
• Confirm sector restrictions before committing to a structure.
• Secure a registration-eligible address and verify it suits your licenses.
• Start document legalization early, as it often drives the timeline.
• Budget for ongoing compliance, not just registration.

Disclaimer

This article provides general information only and does not constitute legal, tax, accounting or investment advice. It does not create any professional relationship. Company registration rules, foreign investment policies, tax rules, capital requirements and procedures in China change and are applied differently depending on the specific facts. Always consult qualified local professionals and the relevant authorities before making decisions about registering or operating a company in Longan or elsewhere in China.