01 · ChinaMNC
Why Keqiao for a foreign-owned business
Keqiao is a district of Shaoxing in Zhejiang, within the Yangtze River Delta, one of China's most connected economic regions. Its reputation rests largely on textiles and apparel: the China Textile City market in Keqiao is a major trading venue for fabrics and related products, and the surrounding district hosts a dense ecosystem of mills, traders, dyeing and finishing operations, and logistics providers. For founders in fabrics, garments, home textiles or sourcing, that concentration can shorten the distance between supplier, sample and shipment.
The broader location matters too. Shaoxing sits close to Hangzhou and Ningbo, giving access to major air and sea gateways and to the wider Zhejiang manufacturing base. Hangzhou Xiaoshan International Airport serves the area, and Ningbo-Zhoushan Port is a leading container port. That combination supports trading companies, sourcing offices and light manufacturing or quality-control operations.
Keqiao is not only for textile businesses, but founders should be realistic: the local advantage is strongest where your activity connects to the district's trading and manufacturing base. If your market is elsewhere in China, compare Keqiao with Shanghai, Hangzhou or Ningbo before deciding.
02 · ChinaMNC
Entity options: WFOE, joint venture or representative office
Most foreign founders in Keqiao choose a Wholly Foreign-Owned Enterprise (WFOE), a limited liability company owned entirely by foreign investors. A WFOE can conduct the business activities listed in its approved scope, issue invoices, hire staff and remit profits, which makes it the default for trading, sourcing, consulting and manufacturing projects. It requires a registered address and a business scope that matches your actual activity.
A joint venture (JV) with a Chinese partner can make sense where local relationships, land, licences or distribution are central, or where a sector restricts foreign ownership. The trade-off is governance: equity split, board control, deadlock provisions and exit mechanics need careful drafting before registration.
A representative office (RO) is the lightest option but the most limited. It may not generate revenue directly; it exists for liaison, market research and coordination. Founders often use an RO to test the market, then convert to a WFOE once revenue activity is clear. Confirm current sector rules and negative-list restrictions with a local adviser before choosing.
03 · ChinaMNC
The five-step registration process
Step 1: Name and scope check. Prepare several candidate company names in Chinese and confirm the business scope wording fits your planned activities. Name approval is handled through the market regulation system, and scope wording matters for later tax and licensing questions.
Step 2: Choose the registered address. You need a lawful address in Keqiao, whether a leased office, a serviced address that permits registration, or premises tied to an industrial park. Confirm the landlord can provide the documents the authorities require.
Step 3: Prepare and file establishment documents. This typically includes the articles of association, investor identification and notarised or apostilled corporate documents, and appointment papers for the legal representative and supervisors. Foreign documents usually need translation and authentication.
Step 4: Obtain the business licence and complete post-establishment filings. After the licence is issued, arrange company seals, tax registration, and social insurance and housing fund set-up if you will hire staff.
Step 5: Open a bank account and arrange visas. Bank onboarding involves compliance review, so prepare ownership and source-of-funds information. Then plan work permits and residence permits for foreign staff.
04 · ChinaMNC
Documents foreign founders should prepare
Document requirements vary by entity type and investor structure, but foreign founders should expect to assemble a consistent package. For the foreign corporate investor, this usually means the certificate of incorporation, articles or equivalent constitutional documents, and a register of directors or shareholders. These are commonly notarised and legalised, or apostilled where the Hague Apostille Convention applies, then translated into Chinese.
For individual foreign investors, a passport copy and proof of address are typical. You will also need the proposed company name, registered address documents, business scope wording, and details of the legal representative, supervisors and any senior managers. A short description of the business plan helps explain the scope and is useful for banking.
Keep names and dates consistent across every document; mismatches between the passport, notarised papers and application forms are a common cause of delay. If your investor structure includes several layers or a trust, expect additional ownership disclosures. Because rules and local practice change, verify the current checklist with the Keqiao market regulation authority or a licensed local adviser before filing.
05 · ChinaMNC
Registered address and business scope in Keqiao
The registered address is more than a formality. It is the company's legal domicile and the place authorities may use for correspondence and inspections. In Keqiao, founders commonly use leased office space, serviced offices that explicitly permit company registration, or premises within an industrial or trade park. Before signing a lease, confirm the property's use is compatible with registration and that the landlord will supply the ownership certificate and lease documents needed for filing.
Business scope should describe what you will actually do, in the standard wording used by the market regulation system. A trading company might include the sale of textiles, garments and related products, together with import and export where relevant. A sourcing or consulting WFOE needs wording that matches its services. Some activities require additional permits or approvals, so list them early and confirm whether a pre- or post-licence applies.
Do not copy a scope from another company without checking it. Over-broad wording can trigger extra scrutiny, while a scope that is too narrow may block invoicing for your real activity. Import-export rights, customs registration and foreign trade operator status should be planned alongside the scope if you will trade internationally.
06 · ChinaMNC
Banking, tax and visas after registration
Opening a corporate bank account is often the slowest step for foreign-owned companies. Banks conduct know-your-customer and anti-money-laundering checks covering the ownership chain, the business model, expected transaction volumes and source of funds. Prepare a clear explanation of your business, contracts or supplier details, and consistent documents. In-person attendance by the legal representative or authorised signatory is commonly required, and some banks prefer a local presence or a minimum deposit; confirm terms directly with the bank.
On tax, a new company must complete tax registration and understand its taxpayer status, invoicing needs and monthly or quarterly filing obligations. A WFOE typically needs bookkeeping from the first reporting period, and many foreign founders appoint a local accounting firm. VAT, corporate income tax and withholding obligations on cross-border payments should be mapped with a tax adviser.
For foreign staff, plan the work permit and residence permit process alongside company set-up. The company generally acts as the employer and must support the application with corporate documents. Dependants, if any, have separate procedures. Timelines depend on document readiness and authority processing, so build buffer into your launch plan.
07 · ChinaMNC
Common mistakes to avoid
Choosing an address that cannot be registered. A cheap lease is no saving if the property or landlord cannot support registration. Verify before signing.
Mismatching scope and activity. Founders sometimes register a consulting scope but plan to trade, or vice versa. Align the scope with invoicing and licensing needs from the start.
Underestimating document authentication. Notarisation, legalisation or apostille, and translation take time. Errors in names or corporate details cause rework.
Ignoring bank compliance. A business licence does not guarantee an account. Prepare ownership and source-of-funds evidence early, and expect questions about your business model.
Treating tax filing as optional. Even with no revenue, reporting obligations may apply. Appoint a bookkeeper before the first filing deadline.
Forgetting visas. Foreign founders and staff need the correct permits before working. Do not assume a business visa is sufficient.
Assuming rules are static. Foreign investment rules, scope wording and local practice change. Verify current requirements with the Keqiao authorities or a licensed adviser rather than relying on older guides.