Business License in China 2026: Types, Cost & How to Apply

The business licence in China is the official certificate that proves your company is legally registered and authorised to operate. Since the 2014 “Five-in-One” reform, the modern Chinese business licence consolidates five separate certificates (business registration, organisation code, tax registration, social insurance, and statistics) into a single document with an 18-digit unified social credit code.

This guide covers the types of business licences in China in 2026, the documents required, the SAMR registration process, and the post-licence steps that turn a piece of paper into an operating business.

What is a business licence in China?

A Chinese business licence is the legal document issued by the State Administration for Market Regulation (SAMR) that registers a company as an active legal entity. It carries the company’s 18-digit Unified Social Credit Code, the registered name, the legal representative, the registered capital, the business scope (which determines what the company can legally do), and the registered address.

Without a valid business licence, a Chinese company cannot legally operate, hire staff, sign contracts, open a bank account, or issue fapiao (tax-deductible invoices). For foreign-invested companies, the business licence is the operating-permission proof you’ll need for almost every subsequent registration: tax bureau, customs, banking, social insurance, and SAFE.

The Five-in-One business licence (current standard)

Before 2014, foreign-invested companies in China needed five separate certificates: business registration, organisation code, tax registration, social insurance, and statistics registration. Since 2014 (Five-in-One reform) and further consolidation in 2018 (Multi-Cert in One), the single business licence with the 18-digit Unified Social Credit Code now substitutes for all of these.

Key features of the current business licence:

• 18-digit Unified Social Credit Code — the company’s ID for tax, social insurance, statistics, and customs
• Registered company name — in Chinese characters (an English/foreign-language name is optional)
• Legal representative — the natural person bearing legal liability
• Registered capital — the amount declared (paid-in within 5 years under Article 47 of the revised Company Law)
• Business scope — the activities the company is authorised to perform
• Registered address — the office address registered with SAMR (drives the tax bureau jurisdiction)
• Validity — long-term (most foreign-invested companies) or fixed-term per JV agreement

Types of business licences in China

For foreign founders, the most common business licence is the LLC issued for a Wholly Foreign-Owned Enterprise (WFOE) or a Joint Venture.

Who needs a business licence?

• Foreign-invested LLCs (WFOE, JV)
• Foreign Representative Offices and Branch Offices
• Domestic Chinese LLCs and JSCs
• Sole proprietors selling goods or services
• Online retailers (the licence number must be displayed on the e-commerce site)

Exceptions: foreign companies without a Chinese entity that only sell remotely don’t need a Chinese business licence — but they also can’t invoice Chinese customers in RMB or hire Chinese employees directly. For 1–10 hires without an entity, an EOR structure works.

Documents required for a business licence

For a foreign-invested LLC (WFOE):

• Apostilled certificate of incorporation of the foreign parent (single Apostille since November 2023)
• Apostilled register of directors and members
• Bank reference letter showing 2+ years of operation
• Most recent audited financial statements of the parent
• Apostilled passport copy of the legal representative
• Lease agreement with 25-digit property real-estate code
• Power of Attorney to MSA Asia for SAMR filings (notarised)
• Articles of Association (drafted in Chinese)
• Capital sourcing plan
• Business scope description

8-step application process

1. Reserve the company name. Submit the Chinese-character name to SAMR for approval (1–3 days).
2. Sign the lease + obtain the 25-digit property code. Most landlords have it; if not, the local property authority can issue one.
3. Apostille parent docs in the home country. 2–3 weeks for HCCH-member parents; 6–8 weeks for non-member countries (consular legalisation).
4. Draft the Articles of Association in Chinese. Includes registered capital, business scope, governance structure.
5. File with SAMR. Submit all docs + AoA. Typical processing 3–4 weeks.
6. Receive the business licence + 18-digit Unified Social Credit Code. Hard copy + e-copy issued.
7. File foreign-investment record-filing with MOFCOM. Required for foreign-invested enterprises post-2020 FIL.
8. Open the bank account, register for tax, order chops, register social insurance. Done in parallel after the licence is issued.

Total elapsed time: 8–12 weeks from kickoff to fully operating business with licence in hand.

Talk to MSA’s registration team about your China business licence

Cost and timeline (2026)

SAMR’s fees are effectively zero. The professional cost reflects the multi-step process: name reservation, AoA drafting, SAMR filing, MOFCOM record-filing, banking, tax, chops, social insurance.

After you get the business licence — what comes next

The licence is the start, not the finish. Within 30 days of receiving it, you typically need:

• Tax registration with the Tax Bureau (CIT, VAT, IIT)
• Bank accounts — basic RMB, capital RMB, and FX (USD/EUR)
• SAFE registration for capital injection and foreign debt
• Company chops — official, finance, contract, invoice, and legal-rep chops (usually 5)
• Social insurance + housing fund registration before your first hire
• Industry licences if your business scope requires them (food, healthcare, finance, education)

Decision flow — do you need a Chinese business licence?

1. Will you sell to Chinese customers in RMB? If yes, you need a Chinese entity with a business licence (WFOE or JV).
2. Will you hire Chinese employees directly? If yes, you need a Chinese entity with a business licence (or use an EOR).
3. Are you in a Negative-List sector? If yes, you need a JV business licence; the Chinese partner is mandatory.
4. Do you only need liaison and brand presence? A Representative Office licence works (cannot invoice).
5. Do you only need 1–10 employees in China? Use an EOR — no Chinese business licence needed in your name.

Why foreign companies choose MSA Asia for China business licence applications

We’ve been securing Chinese business licences for foreign-invested companies since 2011, with 11 mainland China offices and 56 local experts. We file directly with the local SAMR sub-bureau in your chosen city, not through a sub-contractor. Our clients include Siemens, LVMH, Bosch, Hybrid, Lotus, and Cibes Lift.

We’re G2 top-rated.

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Frequently asked questions