Government registration fees in China are effectively zero. The real first-year cost for a foreign-owned company in Shenzhen is RMB 15,000–30,000: registered address RMB 3,000–10,000, professional service fee RMB 8,000–20,000, and bookkeeping RMB 3,000–8,000. Capital is subscribed, not paid upfront.
Where the money actually goes
Founders often expect a large government charge and are surprised that registration itself is free. The cost sits in three places: an address that passes verification, a service provider who drafts documents that will not be rejected, and the recurring compliance work that starts the month the licence is issued.
Anything quoted well below the range above usually means one of three things: the address is not properly licensed, bookkeeping is excluded from the quote, or the scope is being written so narrowly that you will need a change registration within six months.
What is mandatory and what is not
- Mandatory: registered address, business licence, four seals, tax registration, monthly or quarterly filings, annual corporate income tax return, annual market-regulator report.
- Mandatory if you trade: general taxpayer status, import/export licence, foreign currency account, customs registration.
- Optional but common: trademark filing, work permit for foreign staff, virtual address versus serviced office, audit (only required in specific cases).
How to keep year one lean
Choose a scope you will actually use for two years, so you avoid a change registration. Elect small-scale taxpayer status until revenue justifies otherwise — it halves the bookkeeping workload. Keep the entity dormant rather than deregistering if the business is paused: zero-revenue filings are inexpensive, while re-registration is not.
First-year budget, foreign-owned service company in Shenzhen
| Line item | RMB | Recurring? |
|---|---|---|
| Registered address | 3,000–10,000 | Annual |
| Company seals | 300–800 | One-off |
| Bank account fees | 0–2,000 | Annual |
| Bookkeeping and tax filings | 3,000–8,000 | Annual |
| Annual compliance reports | 1,000–2,000 | Annual |
| Professional service fee | 8,000–20,000 | One-off |
Frequently asked
Are there hidden costs after registration?
The recurring ones are the address renewal, bookkeeping, and the annual corporate income tax and market-regulator reports. If you hire staff, social insurance contributions are mandatory from the first month and are usually the largest ongoing cost — often more than all professional fees combined.
Do I have to pay in the registered capital?
Registered capital is a subscribed amount with a contribution deadline, not a deposit at registration. Under the current company law the contribution timetable is capped at five years. In practice banks and counterparties expect to see some capital paid in before they extend credit or sign large contracts.
Can I set up a company without an office?
Yes, using a licensed virtual address or a serviced office. A residential apartment is not normally accepted, and the market regulator cross-checks addresses against property and utility records, so an unlicensed address will fail verification and can trigger an address abnormality notice later.
Not sure which route applies to you?
Tell us what you are trying to do. The first call is a feasibility check, not a sales pitch.