Set up and run your company in mainland China

01 · ChinaMNC

Why mainland China for Mozambican founders

China is one of the world's largest consumer and industrial markets, and it is also a deep supply base. For a Mozambican founder, that combination matters in two directions: sourcing and manufacturing on one side, and selling into Chinese buyers on the other.

Mozambique's trade relationship with China is long-standing, and Chinese firms are active in infrastructure, agriculture, logistics and mining-related supply chains. That creates demand for local partners, sourcing agents, quality inspection and specialised services that a well-run Mozambican company can provide.

• Market scale: access to buyers, distributors and industrial clusters across multiple provinces.
• Supply chain depth: components, machinery and finished goods available close to each other.
• E-commerce and digital channels: mature platforms and logistics for both domestic and cross-border trade.
• Existing trade flows: established shipping and freight links between Mozambican ports and Chinese hubs.

A China entity lets you contract locally, invoice in renminbi, hire staff and hold a bank account, rather than running everything through intermediaries. That control usually improves margins and reduces dependence on third parties, but it also brings compliance obligations that must be planned for from day one.

02 · ChinaMNC

WFOE, joint venture or representative office

The three structures most Mozambican founders consider are the wholly foreign-owned enterprise (WFOE), the Sino-foreign equity joint venture (JV) and the representative office (RO). Each suits a different stage and purpose.

WFOE. A WFOE is 100% foreign-owned and is the default choice for companies that want to invoice, trade, provide services or manufacture in China. It requires registered capital, a registered address and a defined business scope. It gives you full control but also full responsibility for accounting, tax and staffing.

Joint venture. A JV brings in a Chinese partner, which can help with licences, land, distribution or local relationships in restricted sectors. The trade-off is shared control and the need for a carefully drafted shareholders' agreement covering governance, capital contributions, exit and dispute resolution.

Representative office. An RO is a liaison office. It cannot generate revenue directly, so it suits market research and coordination rather than trading. It is simpler to establish but limited in what it can do.

• Choose a WFOE if you need to invoice customers and control operations.
• Choose a JV if the sector is restricted or a local partner adds real capability.
• Choose an RO if you are still testing the market and only need a presence.

Sector rules change, so confirm your specific activity against the current negative list before deciding.

03 · ChinaMNC

The five-step registration process

Registration in mainland China follows a recognisable sequence. Timelines vary by city, sector and how complete your documents are, so treat this as an order of work rather than a schedule.

• Step 1 — Feasibility and structure. Define what the entity will actually do, where it will sit, who the legal representative will be, and whether your activity is permitted for foreign investment. Confirm the Chinese name and reserve it.
• Step 2 — Incorporation with SAMR. File the company name, articles of association, shareholder and director details, registered capital and registered address with the market regulation authority. Receive the business licence.
• Step 3 — Post-licence registrations. Have company seals carved, then register with the tax bureau, complete foreign exchange registration, and set up social insurance and housing fund accounts if you will employ staff.
• Step 4 — Banking. Open the basic RMB account and any foreign currency capital account. Inject registered capital in line with foreign exchange rules and keep the supporting documentation.
• Step 5 — Go live. Complete any sector-specific permits, configure invoicing, engage an accounting provider, and put employment contracts and payroll in place before the first hire.

Budget time for translation, notarisation and consular legalisation of Mozambican documents, because these often sit on the critical path.

04 · ChinaMNC

Documents you will need

Chinese authorities expect clean, consistent paperwork. The exact list depends on your structure and city, but the core set for a WFOE typically includes the following.

• Corporate shareholders: certificate of incorporation, articles, and a board resolution approving the China investment, all notarised and legalised or apostilled as applicable, with Chinese translations.
• Individual shareholders: passport copies and proof of address.
• Legal representative and directors: passport copies, contact details and, where required, a clean criminal record certificate.
• Registered address: lease agreement and property ownership documents for the premises.
• Company name: several Chinese name options in order of preference.
• Articles of association: drafted to match the filed business scope and governance.
• Capital and funding: a statement of registered capital and the source of funds.

Consistency matters. The shareholder name on the bank reference should match the certificate of incorporation, the translation and the application form. Mismatches are one of the most common causes of delay. Keep a digital and physical master file, and plan for documents to be re-issued if signatures or dates are wrong.

05 · ChinaMNC

Registered address and business scope

Two items cause more early friction than almost anything else: the registered address and the business scope.

Registered address. Your company must have a lawful address in the city where it is registered, supported by a lease and property documents. Some cities allow serviced or virtual office arrangements for certain activities; others require actual premises, especially for manufacturing, warehousing or food-related operations. Inspections can occur, so the address must be real and reachable. Changing address later is possible but involves amendments and notifications.

Business scope. The scope defines what the company may do. It is written in standard Chinese phrasing and must align with permitted foreign investment activities. Too narrow and you cannot invoice for services you actually provide; too broad and you may trigger additional approvals or scrutiny.

• List your core revenue activity first and describe it precisely.
• Add genuinely planned secondary activities rather than speculative ones.
• Check whether your activity needs a pre-approval or a post-registration permit.
• Review the scope when you add product lines or services.

Get this right at filing stage. Amending the scope later is routine but costs time and paperwork.

06 · ChinaMNC

Banking, tax and visas

Once the business licence is issued, the operational work begins. Banking, tax and immigration are separate tracks that need to be coordinated.

Banking. Open the basic RMB account for day-to-day operations and a foreign currency capital account for shareholder funding. Banks conduct know-your-customer checks, so expect questions about shareholders, source of funds and expected transaction volumes. Keep capital injection documentation complete, as it is needed for later remittances and audits.

Tax. Register with the tax bureau, confirm your taxpayer status, and set up invoicing. China operates VAT plus corporate income tax, with withholding obligations on certain cross-border payments. Bookkeeping and monthly or quarterly filings are mandatory even when there is no revenue, so appoint a qualified accounting firm early.

Visas and permits. Foreign staff generally enter on a Z visa supported by a work permit notification, then convert to a residence permit. The process involves the employer, the science and technology or foreign expert authority, and the exit-entry administration. Allow time for degree and criminal record documents to be legalised and translated.

• Do not trade before the bank account and tax registration are active.
• Keep payroll, social insurance and individual income tax filings aligned.
• Track visa and permit expiry dates centrally.

07 · ChinaMNC

Common mistakes to avoid

Most problems we see are avoidable with a little foresight. These are the patterns worth guarding against.

• Choosing the wrong city. Registering where a friend has an office rather than where your customers, suppliers or talent are located adds cost and complexity.
• Underestimating registered capital. Capital must be realistic and fundable. Too low can undermine credibility with banks and partners; too high creates a funding obligation you may struggle to meet.
• Vague business scope. A scope that does not match actual invoicing leads to problems with tax and banking later.
• Weak address documentation. Informal leases or shared addresses that cannot be verified can stall registration or trigger issues during inspection.
• Ignoring compliance from month one. Skipping filings because there is no revenue creates penalties and can affect the legal representative.
• Poor document consistency. Name variants, missing legalisation and untranslated pages cause repeated rejections.
• No local accounting partner. Chinese bookkeeping and invoicing rules are specific; DIY approaches rarely hold up.
• Assuming an RO can trade. Representative offices cannot generate revenue, and using one as a sales vehicle creates risk.

Plan the operating model before the paperwork, and involve advisers who work in the city you have chosen.