If you are a foreigner and want to set up a company in China, generally you need to go through company approval and registration procedures. There are basically three kinds of foreign-invested enterprises in China, equity joint venture (EJV), cooperative joint venture (CJV) and wholly foreign-owned enterprise (WFOE).

To start a foreign invested company, first, the business to be engaged in should be approved by competent authorities for the specific industry, where such approval is necessary. In addition, the business should fall into the categories of encouraged or permitted industrial sectors, as listed in the directory of foreign investment industries.

Second, the company should submit feasibility study, company contracts, articles of association and relevant documents to competent authorities (usually the local COFTEC). Within about 3 months, the competent authority will determine whether to issue the investment Approval Certificate for the company.

Third, within about 1 month after the receipt of the Approval Certificate, the applicant should go through the procedure of registration with the State Administration for Industry and Commence (SAIC). Once the SAIC issues business license, the company achieves legal person status. The date on which the company's business license is signed and issued should be deemed to be such company's date of establishment.

Finally, after the issuance of the business license, the company should register with tax & customs bureau, open foreign exchange & RMB bank accounts and go through other necessary applications.