Branch of Foreign Company
Branch of Foreign Company Set-up
Looking to establish a company in China? Our expert guide covers steps, benefits, limitations, and costs.
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What is Branch of Foreign Company?
A Branch of a Foreign Company is a non-independent business office established by a legally registered foreign enterprise in China. It operates under the Company Law of the People’s Republic of China (2023 Revision) and the Foreign Investment Law (2019).
Unlike Chinese-registered companies (such as Limited Liability Companies or Joint-Stock Companies), a foreign branch does not have independent legal personality — all civil and financial liabilities are borne directly by the foreign parent company.
Foreign branches must register with the Administration for Market Regulation (AMR) and, where applicable, obtain approval or record-filing from the Ministry of Commerce (MOFCOM) or other competent regulators before starting operations.
Simplified structure
Easier withdrawal
Direct control by the head office
Legally recognized presence
Why Choose Branch of Foreign Company?
A branch of foreign company offers a way for overseas enterprises to operate or represent their business in China without establishing a new legal entity.
Simplified structure
no capital injection required.
Easier withdrawal
can close after project completion
Legally recognized presence
enables contracts, invoicing, and hiring under the parent’s name.
Direct control by the head office
unified decision-making and reporting.
Suitable for project-based operations
Suitable for project-based operations or limited-scope activities.
Direct Market Presence
foreign companies can operate projects in China without forming a separate legal entity
Who Should Consider Branch of Foreign Company?
A Branch of Foreign Company is ideal for enterprises that need a legal presence but do not plan to create a separate Chinese subsidiary.
Representative Businesses
Foreign firms conducting liaison, research, or service coordination for clients in China.
Project-Based Operations
Construction, engineering, or technology companies executing short-term projects under the parent’s brand.
Regulated Industries
Banks, insurance firms, and law offices operating under specific licensing from national authorities.
Expansion Testing
Businesses exploring the Chinese market before committing to a full LLC or JSC structure.
China Branch of Foreign Company Registration Procedure
1. Preparation
Confirm the business scope and collect parent company documentation.
- Valid business registration certificate of the parent company
- Notarization and Chinese translation of foreign documents
- Identify chief representative and address in China
2. Application Submission
File with MOFCOM (or relevant regulator) and register with the AMR.
- Submit notarized and legalized documents
- Appoint chief representative
- Apply for Business License
3. Post-Registration Filings
Fulfill operational requirements before commencing activities.
- Register for tax and foreign exchange
- Open RMB and foreign-currency bank accounts
- Register with social insurance authorities (if hiring staff)
Timeline
Pre-Approval & Planning
Confirm eligibility and prepare required documentation.
- Estimated time: 3–4 weeks
Registration & Licensing
Submit application materials to the AMR for business registration.
- Estimated time: 2–3 weeks
Post-Registration Setup
Complete statutory filings and prepare for operation.
- Estimated time: 2–3 weeks
Basic Documents required for Branch of Foreign Company
1. Foundational Records
- Parent company registration certificate (notarized & legalized)
- Articles of Association and board resolution
- Power of attorney for chief representative
2. Compliance Records
- MOFCOM approval or record-filing certificate
- AMR registration documents
- Tax and banking registration forms
3. Operation Records
- Bank account setup certificate
- Lease or address certificate in China
- Employment and social insurance registration
WHAT DO YOU GET
Business License
Issued by AMR confirming the branch’s legal operation in China
MOFCOM Approval
Official authorization for foreign enterprises to operate locally.
Registered Seal Set
Official, financial, and representative seals for legal transactions.
Chief Representative Appointment
Certificate recognizing authorized management of the branch.
Tax & Bank Registration
Proof of compliance for financial operations and local filings.
Operational Records
Includes filings, staff registration, and ongoing compliance reports.
All-In-One Foreign Branch Entry Package
Our Branch of Foreign Company Incorporation Package helps foreign investors establish a fully independent legal entity in China.
Under the 2024 Company Law, a Foreign Branch enables shareholding, capital raising, and long-term operations with transparent governance and full regulatory compliance.
Branch of Foreign Company Registration
Foreign Branch registration securing your business certificate, registered address and bank accounts.
Tax & Accounting Compliance
China accounting system setup. Monthly, quarterly & yearly reporting. Corporate annual tax return.
Employer of Record
We take care of contracts, payroll, benefits, and HR administration.
Branch of Foreign Company FAQs
What is a Branch of a Foreign Company in China?
A Branch of a Foreign Company is a non-independent office established by a foreign enterprise in China to conduct approved business activities. It operates under the Company Law (2023 Revision) and the Foreign Investment Law (2019).
Is a foreign branch a separate legal entity in China?
No. A branch is not an independent legal person.
All debts and liabilities are borne directly by the foreign parent company.
Can a foreign company open a branch in China?
Yes. Legally registered foreign companies can establish branches in China, subject to approval from the Administration for Market Regulation (AMR) and relevant regulators.
What is the difference between a branch and a foreign company?
A foreign company is incorporated overseas.
A branch is its registered extension in China that conducts business locally under the parent company’s name.
What is the difference between a branch and a subsidiary (LLC)?
A branch is part of the parent company with no separate legal identity.
A subsidiary (LLC) is an independent Chinese company with limited liability and its own corporate status.
Can a foreign company own 100% of a branch in China?
Yes, because the branch is wholly owned by its foreign parent company.
However, it can only engage in activities permitted by its approved business scope.
What are the requirements to establish a foreign branch in China?
- The foreign company must be legally registered for at least 2 years.
- Obtain approval from MOFCOM or an industry regulator.
- Appoint a chief representative and provide a local business address.
How is a foreign branch taxed in China?
A branch is taxed as a permanent establishment (PE) in China.
It pays Corporate Income Tax (CIT) and Value-Added Tax (VAT) on income generated in China.
Can a foreign branch hire local employees?
Yes, after completing tax and social insurance registration, a foreign branch may directly hire Chinese staff.
What documents are required for registration?
- Parent company certificate (notarized and legalized)
- Articles of Association
- Board resolution and Power of Attorney
- Chief representative’s ID/passport
- Lease or office address proof
What foreign companies operate branches in China?
Many global corporations have registered branches — including foreign banks, insurance firms, construction groups, shipping lines, and law offices.
What licenses or approvals are needed for specific industries?
Sectors such as banking, finance, law, shipping, and energy require additional approval from industry regulators (e.g., CBIRC, Ministry of Justice).
Can a foreign branch sign contracts in China?
Yes, as long as the contract is within the approved business scope, a branch may sign and execute agreements in China under the parent company’s name.
What are the advantages of a foreign branch?
- No capital injection requirement
- Direct parent company control
- Simplified reporting structure
- Easier withdrawal after project completion
What are the disadvantages of a foreign branch?
- No limited liability protection
- Restricted business scope
- All risks borne by the foreign parent
How can a foreign branch be closed in China?
It must undergo deregistration with AMR, complete tax clearance, and cancel all licenses, seals, and bank accounts.
What’s the legal basis for foreign branches in China?
The establishment and management of foreign company branches are governed by:
- Company Law of the PRC (2023 Revision)
- Foreign Investment Law (2019)
- Administrative Regulations on Registration of Foreign Company Branches
Can a foreign branch own property in China?
Yes, it can lease or own property necessary for its operations, subject to registration under the parent company’s name.
What’s the difference between a representative office and a branch?
A representative office (RO) can only engage in liaison and research activities.
A branch can generate revenue and perform business activities within its approved scope.
How long does it take to register a foreign branch?
Typically 6–8 weeks, depending on document legalization, government approvals, and translation requirements.