How To Set Up Singapore Business In China 2025

There are several unique advantages of setting up a company in China. To help entrepreneurs with this, we will discuss major methods of setting up business such as Wholly Foreign-Owned Enterprises (WFOEs), Joint Ventures, and Representative Offices and we will also discuss the entire procedure of China company registration.

Benefits of Registering Your Company in China

As of 2025, China remains one of the most attractive destinations for foreign investment  looking to expand into Asia’s largest consumer and manufacturing market. Despite global economic headwinds, China’s economy recorded a solid 5.2% GDP growth in 2024 (IMF) backed by resilient domestic demand and strategic policy support aimed at foreign investors.

1. Access to a Vast and Evolving Market

With a population of over 1.4 billion and a rapidly growing middle class, China offers unmatched market potential for both B2B and B2C enterprises. The rise of consumer spending, urbanization, and digital infrastructure provides fertile ground for scalable growth.

2. Strategic Industry Opportunities

The Chinese government continues to promote foreign direct investment (FDI) in encouraged sectors through favorable tax rates, simplified licensing, and streamlined registration procedures. Key sectors prioritized in 2025 include:

• Information and Communication Technology (ICT)
• Artificial Intelligence and Smart Manufacturing
• Green Energy and Environmental Technologies
• Semiconductor and Chip Fabrication
• Logistics, E-commerce & Cross-border Trade
• Advanced Manufacturing and Automation

Singaporean companies with technological expertise, R&D capacity, or high-value service offerings can find a competitive edge by entering these sectors.

3. Preferential Zones and Tax Incentives

China’s continued expansion of Free Trade Zones (FTZs) is now covering over 21 regions including Shanghai, Guangdong, and Hainan which offers Singaporean businesses simplified customs procedures, reduced corporate tax rates, and faster registration timelines.

Additionally, high-tech enterprises operating in designated development zones may enjoy reduced corporate tax rates (as low as 15%), making it financially attractive for knowledge-intensive companies to establish a foothold.

4. Updated Negative List and Improved Market Access

In 2024, China further shortened its Negative List for Foreign Investment which signals stronger market liberalization. This opens the door for more industries to be fully or partially foreign-owned. As the 2025 updates are expected to continue this trend, Singaporean investors can benefit from greater clarity and fewer restrictions particularly in the service, manufacturing, and environmental sectors.

5. Regional Synergy with Singapore

With strong diplomatic and trade ties under frameworks like the China-Singapore Free Trade Agreement Upgrade Protocol, Singapore-based companies benefit from tariff reductions, investment protection mechanisms, and cross-border legal recognition. Singapore’s robust legal and financial systems make it an ideal launchpad for structured entry into the Chinese market.

China Company Registration: Business Formation Options for Foreigners

 1. Wholly Foreign-Owned Enterprise (WFOE)

A Wholly Foreign-Owned Enterprise (WFOE) is the most popular structure for foreign companies looking to maintain full operational control in China. It allows 100% foreign ownership and is well-suited for businesses in consulting, trading, IT, manufacturing, and service sectors.

Key Benefits:

• Full control over operations, decision-making, and human resources.
• Direct ability to issue official Chinese invoices (fapiao).
• Legal entity status enables profit repatriation and trademark protection.
• Enhanced compliance options with China’s new Digital Business Licensing System, piloted in select Free Trade Zones in 2025.

2. Joint Venture (JV)

A Joint Venture is a limited liability company formed between a foreign investor and a Chinese partner. This model is particularly advantageous when entering regulated or restricted sectors that do not permit 100% foreign ownership. JVs remain essential for foreign businesses targeting sectors like education, healthcare, publishing, or energy, where foreign ownership is capped. Ensure you conduct thorough due diligence and clarify governance structures to avoid potential disputes.

Key Benefits:

• Fast-track market entry by leveraging the local partner’s regulatory knowledge, distribution network, and industry connections.
• Access to government contracts and sectors with investment barriers for WFOEs.
• Shared operational risks and capital investment.

3. Representative Office (RO)

A Representative Office is the simplest and lowest-cost structure for foreign companies seeking to establish a non-commercial presence in China. While it does not offer revenue-generating capabilities, it is suitable for conducting:

• Market research
• Liaison activities
• Partner or supplier engagement
• Customer support services

There are some limitations which include:

• Cannot engage in direct business operations or sales.
• Cannot issue fapiao (Chinese tax invoices) or sign contracts on behalf of the parent company.
• Subject to annual renewal and regulatory supervision.

As part of China’s e-governance reforms, Representative Office filings and renewals can now be submitted digitally in many Tier 1 cities. However, this structure remains strictly non-commercial and best suited for early-stage market exploration.

The Complete Procedure for China Company Registration

Setting up a Wholly Foreign-Owned Enterprise (WFOE) or other business entity in China involves multiple regulatory steps. In 2025, the process will become more efficient, especially in Free Trade Zones (FTZs) and Tier 1 cities like Shanghai, Shenzhen, and Beijing, where online filing systems and accelerated timelines are now widely adopted.

However, regulatory complexity remains high particularly around local tax compliance, industry-specific licensing, and regional administrative requirements. Working with a trusted agency is essential for smooth incorporation and post-registration compliance.

Here’s a simplified step-by-step guide:

Step 1: Choose an Agency

In this respect, it requires working with a professional agency. Agencies like FastLane help to ensure legality in contracting, documentation services necessary on an ongoing basis in a company’s lifecycle such as payroll, bookkeeping and tax advice.

Step 2: Select the Company Scope

For those companies wishing to know in which sectors the government encourages investment, can refer to the Catalog for the Guidance of Foreign Investment Industries.

Step 3: Name Pre-Approval

Submit a Chinese company name for pre-approval via the local Administration for Market Regulation (AMR). The selected name must follow strict guidelines selecting an appropriate and compliant name early can prevent delays.

Step 4: Prepare Required Documents

Company registration requires approval of company name, listing of controlling partners, detailed provision on the managerial structure of the firm, the legal address of the organization, Articles of Association, registered capital, and a comprehensive feasibility study for justification.

Step 5: MOFCOM & SAMR Filing

File the company registration with:

• MOFCOM (Ministry of Commerce) – for foreign investment registration.
• SAMR (State Administration for Market Regulation) – for business license approval.

In Tier 1 cities and FTZs, filings can now be completed online, reducing the processing time to as fast as 5–10 working days for standard cases.

Step 6: Obtain Business License

Once filings are approved, receive the Business License which officially recognizes your entity as a legal business in China. Some industries (e.g., food production, education, fintech) may require special permits or additional licenses.

Step 7: Carve Company Chops

Register with the local Public Security Bureau (PSB) to obtain your company seals or “chops,” which are legally binding on documents in China. Common chops include:

• Official company chop
• Financial chop
• Legal representative chop
• Contract chop

Step 8: Open Corporate Bank Account

Set up an RMB basic account with a licensed Chinese bank. Many foreign companies also open a foreign currency account for cross-border transactions. Bank due diligence has tightened so prepare all documents (passport, lease agreement, business license) and be ready for an in-person representative interview.

Step 9: Tax Registration

Register with the local Tax Bureau to activate your company’s tax profile. China’s tax landscape has become more localized and digitized. Consult with a qualified tax advisor to ensure full compliance.
This includes setup for:

• E-invoicing (fapiao) system
• VAT
• Corporate income tax
• Withholding tax

Comparing China and Singapore for Company Registration

When evaluating China and Singapore for company registration, consider key factors:

Foreign Ownership

Singapore allows 100% foreign shareholding and imposes no restrictions on business activities. China permits WFOEs but has limitations on business activities, categorized as “encouraged,” “restricted,” or “prohibited.”

Minimum Statutory Requirements

Singapore will need to have an address within the country, one resident director, one company secretary, between 1 to 50 shareholders, as well as a minimum capital amount of SGD 1.00.

You will require having a commercial address, one or multiple directors, up to 50 foreign shareholders, a legal representative, a General Manager, a supervisor, and minimum registered capital ranging from 100,000 up to 1,000,000.

Incorporation Procedure

Singapore offers a streamlined, fully computerized company registration process completed within 24 hours.

Company incorporation in China is complex, involving multiple procedures, often taking 2-3 months to obtain approvals.

Corporate Taxes

Singapore charges corporate tax rates of approximately 8.5% for profits up to S$300K and 17% for profits above S$300K, with a 7% GST.

China’s standard corporate tax rate is 25%, with potential reductions for businesses in “encouraged” sectors. VAT rates in China vary by industry. If you need taxation service, talk to FastLane. We specialize in providing taxation services for Foreign companies in China.

Annual Filing Requirements

Singapore requires that companies submit an Annual Return for filing at the Company’s Registrar and an Income Tax Return for submission to the Singapore tax department every year. Audited accounts will not be submitted with returns by small companies.

Companies in China have to provide to the tax department monthly, quarterly and annual income tax returns together with audited accounts. Also, a WFOE should provide an audited annual report for annual inspection by some departments in the Chinese government. Every single company must be audited.

Conclusion

There are several benefits of setting up a company in China including broad market, booming economy and multiple business opportunities. On the other hand, the registration method may not be straightforward, requiring expert agency guidance. Consider the business objectives carefully before deciding on the most applicable jurisdiction for registration of a company. 

Navigating China’s regulatory environment can be complex so getting expert assistance is a great advantage. Whether you’re planning to set up a Wholly Foreign-Owned Enterprise, enter a Joint Venture, or establish a Representative Office, FastLane provides end-to-end support for Singapore businesses expanding into China such as:

• Expert Guidance on Business Structure
• Seamless Company Incorporation in China’s Free Trade Zones
• Payroll, Accounting & Tax Compliance Services
• Ongoing Regulatory Filing and HR Administration Support

Contact us today and get a free consultation tailored to your business needs.