Set Up and Run Your Company in Mainland China

01 · ChinaMNC

Why mainland China for Cuban founders and companies

China is a large and diverse market, and for Cuban businesses it can serve several different purposes at once. It may be a sourcing base for equipment, components or consumer goods; a market for Cuban products such as rum, coffee, tobacco-related goods where permitted, or cultural and professional services; or a platform for partnerships in logistics, manufacturing and trade. Registering a local entity makes it easier to contract with Chinese suppliers, invoice customers, hire staff and hold a bank account in renminbi.

A local presence also changes how you are treated commercially. Many Chinese buyers and platforms prefer to deal with a registered domestic company rather than a foreign entity invoicing from abroad. A subsidiary can sign leases, import and export within its approved scope, and manage local payroll.

At the same time, distance, language and regulatory differences are real. Success usually depends on choosing the right city, defining a realistic business scope, and budgeting for compliance from the start rather than treating registration as a one-off formality. This page focuses on those practical choices.

02 · ChinaMNC

Choosing your structure: WFOE, joint venture or representative office

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

• WFOE: A limited liability company owned entirely by your Cuban parent or by you personally. It can conduct the business activities listed in its approved scope, hire employees, invoice customers and hold assets. This is the most common choice for companies that intend to trade, provide services or manufacture. It requires registered capital, a registered address and ongoing accounting and tax filing.
• Joint venture: A company shared with one or more Chinese partners. A JV can bring local market access, licenses, land or distribution that you cannot easily obtain alone. In exchange, you share control and profit, so governance, capital contributions and exit terms need careful drafting.
• Representative office: A liaison office that cannot earn revenue directly. It is useful for market research, supplier liaison and quality control, but it cannot sign sales contracts or invoice customers on its own behalf.

Many Cuban companies start with an RO or a sourcing arrangement, then convert to a WFOE once the commercial model is clear. Decide based on what you need to invoice, hire and sign, not on which structure sounds simplest.

03 · ChinaMNC

The five-step registration process

Registration in mainland China generally follows a sequence, though the local details differ by city and by industry. Treat this as a planning framework.

• Step 1 — Define the business. Decide the entity type, the city, the activities you will actually carry out, and an estimated registered capital and staffing plan. Check whether your sector needs a special permit before going further.
• Step 2 — Prepare and notarise documents. Assemble the parent company's incorporation documents, ownership chart, passports of legal representatives and directors, and draft constitutional documents. Foreign documents usually need notarisation and legalisation or an equivalent process acceptable to the local authority.
• Step 3 — Secure a registered address. Arrange a compliant address in the chosen city, with a lease or hosting agreement that satisfies local market regulation requirements.
• Step 4 — Submit the establishment filing. File the company name, scope, capital, shareholders and officers with the local market regulation authority and obtain the business licence.
• Step 5 — Complete post-licence steps. Arrange company seals, open a bank account, complete tax registration, set up bookkeeping and payroll, and apply for any sector licence and staff visas.

Sequence matters: banking, tax and visas all depend on the licence, so plan the later steps before you file.

04 · ChinaMNC

Documents you will typically need

The document set is the part most often underestimated. Requirements are set locally, and translations into Chinese are generally required for foreign-language papers.

• Parent company documents: certificate of incorporation, articles of association, register of directors and shareholders, and a current certificate of good standing where available.
• Ownership chart: a clear diagram tracing ownership up to the ultimate beneficial owners, with supporting identification.
• Identity documents: passports for the legal representative, directors, supervisors and authorised signatories.
• Constitutional and appointment documents: the subsidiary's articles, shareholder resolutions, and appointment letters for officers.
• Address evidence: the lease or hosting agreement for the registered address, plus the landlord's ownership documentation.
• Application forms: name reservation, establishment filing, and sector-specific licence applications where applicable.
• Notarisation and legalisation: foreign documents usually need notarisation and legalisation, or another process accepted by the local authority.

Keep originals and scanned copies, track validity dates on passports, and allow time for translation and authentication. Missing or expired documents are a frequent cause of delay.

05 · ChinaMNC

Registered address, business scope and capital

Three filing details shape what your company can legally do and where it can operate.

Registered address. Every company needs a compliant address in the city of registration. This may be a real office you lease, or a permitted hosting arrangement offered by an industrial park or service provider. The address affects which local authority handles your filing and may affect tax administration. Confirm that the address is accepted for your industry before signing a lease.

Business scope. The scope lists your permitted activities using standard Chinese wording. Some activities are unrestricted; others require a pre-approval or a post-registration licence. Write a scope that matches your real plan, but avoid adding activities you cannot support with staff, premises or permits — an overly broad scope can create compliance obligations.

Registered capital. Capital is stated in the filing and, for many companies, must be contributed within a period set out in the articles. The amount signals seriousness to partners and authorities but also affects liability and, in some sectors, minimum thresholds. Set a figure you can realistically fund and document.

Review all three before filing. Changing them later is possible but adds time and paperwork.

06 · ChinaMNC

Banking, tax and visas after incorporation

Once the business licence is issued, the operational set-up begins.

Banking. Open a renminbi basic account for day-to-day operations and, if needed, a foreign currency account. Banks apply their own onboarding and due diligence, so expect requests about ownership, business activity and expected transaction flows. Prepare a clear explanation of your Cuba–China trade or service model.

Tax. Complete tax registration and confirm your taxpayer status with the local tax authority. Most companies need ongoing bookkeeping, periodic filings and annual reporting, and some activities trigger additional taxes or invoices requirements. Engage a local accountant early; Chinese accounting and invoicing rules are specific and errors are costly to correct.

Visas and permits. Foreign staff generally need a work permit and a corresponding residence permit, and the process usually involves the employer as sponsor. Business visas suit short visits only. Plan hiring and travel around these timelines rather than assuming staff can start immediately.

Budget for these costs as recurring, not one-off. Compliance is part of operating, not a stage you finish.

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Common mistakes to avoid

Most problems at registration and in the first year are predictable. Watch for these.

• Choosing a city for the wrong reason. A cheap address in a city with no relevant suppliers, customers or talent rarely pays off. Match the location to your actual business.
• Underestimating documents. Notarisation, legalisation and translation take time. Expired passports or incomplete ownership charts stall filings.
• Writing an unrealistic business scope. Too narrow blocks your activity; too broad creates obligations you cannot meet.
• Ignoring capital commitments. Promising capital you cannot fund creates pressure later and may affect the licence or your liability.
• Treating the bank account as automatic. Onboarding can take time and requires a coherent explanation of your business.
• Skipping bookkeeping. Informal accounting leads to penalties and makes future audits and financing harder.
• Assuming a visa is quick. Work permits and residence permits depend on the employer and take planning.

Good local advice early is usually cheaper than fixing these issues after the company is running.

08 · ChinaMNC

Frequently asked questions

Can a Cuban individual or company own 100% of a Chinese company? In many sectors, yes — a wholly foreign-owned enterprise is a standard route. Some industries restrict or prohibit foreign ownership and may require a Chinese partner or a specific licence. Check the current rules for your exact activity and city before committing.

Do I need to travel to China to register? Not always. Many filings can be handled by an authorised representative with properly legalised documents. However, bank onboarding and some licence applications may require the legal representative or authorised signatory to appear in person, so confirm with your bank and local authority.

How long does registration take? Timelines vary widely by city, industry and document readiness, and we do not quote guaranteed periods. Document authentication, sector approvals and bank onboarding are usually the slower parts, so plan conservatively.

Can a representative office earn revenue? Generally no. An RO is for liaison, research and quality control and cannot invoice customers for profit-making activity. If you need to sell or contract, consider a WFOE.

What ongoing obligations should I budget for? Bookkeeping and tax filings, annual reporting, payroll and social insurance if you hire staff, lease and address costs, and renewal of visas and licences. These are recurring, and budgeting for them from the start keeps the company compliant.