As trade between Ireland and China continues to thrive, more Irish companies are exploring how to establish a presence in the Chinese market. Whether you're expanding exports, building manufacturing capacity, or tapping into China's growing consumer base, setting up a company in China is a smart long-term move—but it requires careful planning.
This guide breaks down everything an Irish company setting up in China needs to know, from choosing the right structure to avoiding costly mistakes.
Step 1: Choose the Right Legal Structure
Your company structure in China determines how much control you have, what activities you can carry out, and your tax obligations. Here are the three main options for Irish businesses:
Wholly Foreign-Owned Enterprise (WFOE)
Best for: Companies that want full control over their operations in China. Pros:
100% foreign ownership
Full operational and profit control
Can invoice in RMB and hire local staff
Cons:
More complex and time-consuming to set up
Strict compliance requirements
Ideal for: Tech firms, manufacturers, exporters, service providers
Joint Venture (JV)
Best for: Companies entering regulated sectors or needing local market access. Pros:
Access to Chinese partner’s distribution channels and resources
Required for restricted industries
Cons:
Shared ownership and decision-making
Potential for cultural and operational clashes
Ideal for: Sectors like automotive, education, or large-scale infrastructure
Representative Office (Rep Office)
Best for: Companies doing market research, promotion, or liaising with Chinese partners.
Pros:
Low-cost and simple to set up
Good for initial market exploration
Cons:
Cannot generate revenue or sign contracts
Limited to non-commercial activities
Ideal for: Early-stage market testing or relationship building
Step 2: Prepare Required Documentation
To register a company in China, Irish businesses will need to submit various documents—translated and notarised—depending on the business structure and industry.
Typical requirements include:
Parent company incorporation certificate (from Ireland)
Articles of Association
Legal representative’s passport
Office lease agreement in China
Proposed business scope (in Chinese)
Registered capital declaration
Pre-approved company name (in Chinese)
Working with a local expert ensures correct formatting and translation to avoid rejection or delays.
Step 3: Navigate the Incorporation Process
Here’s a simplified overview of how to start a business in China as an Irish company:
Incorporation Timeline:
Step | Description | Estimated Time |
1. Name pre-approval | Chinese business name must be approved by authorities | 5–10 days |
2. Business license registration | Obtain business license from the local Administration for Market Regulation (AMR) | 2–3 weeks |
3. Company seals & chops | Legal stamps used for contracts and banking | 3–5 days |
4. Tax registration | Register with local and national tax authorities | 1–2 weeks |
5. Bank account setup | Open both foreign and RMB corporate accounts | 1–2 weeks |
6. Social insurance registration | Mandatory if hiring local staff | 1 week |
Total estimated timeline: 6–10 weeks (WFOE)
Step 4: Understand the Costs
Costs vary based on city, industry, and company structure. Here's a rough guide:
Cost Component | Estimated Range |
Legal & advisory fees | €5,000–€15,000+ |
Company registration fees | €1,000–€3,000 |
Office rent (3 months deposit typical) | Varies by city/size |
Translation & notarization | €500–€2,000 |
Capital injection (varies by sector) | No minimum for most WFOEs, but ~€50,000–€100,000 is typical for credibility |
Note: While China no longer requires a fixed minimum registered capital for most sectors, a reasonable capital injection is essential to demonstrate financial commitment and pass banking/compliance reviews.
Step 5: Avoid Common Mistakes
1. Choosing the wrong structure
Too many companies start with a Rep Office or JV when a WFOE would have been more flexible and future-proof.
2. Underestimating timelines
Setting up in China involves layers of approval. Delays are common if paperwork is incomplete or not localized.
3. Vague business scope
Your business scope defines what you're legally allowed to do. Too narrow and you’ll be restricted; too broad and authorities may reject it.
4. No IP protection
China uses a first-to-file IP system. Irish companies must register trademarks in China—even before they start operations.
5. Ignoring compliance
Once incorporated, companies must maintain strict monthly, quarterly, and annual filings—even if no revenue is generated.
Step 6: Learn from Irish Companies Already in China
Several Irish firms have successfully navigated China’s business environment:
Pharma Company in Suzhou
Set up a WFOE to manufacture and distribute therapeutic products across East China. Leveraged China’s growing demand for imported healthcare products and built strong relationships with local hospitals.
Dairy Exporter in Shanghai
Started with a cross-border e-commerce model and quickly upgraded to a WFOE to enable domestic sales and warehousing. Focused on premium infant formula and organic milk.
Fintech Startup in Shenzhen
Partnered with a Chinese bank via a JV to deliver digital payment infrastructure. Used their JV partner’s license to operate in a regulated environment.
Each of these businesses succeeded by choosing the right entry strategy, localizing operations, and working with expert advisors.
Partner With Woodburn Global: Your China Setup Specialists
Setting up in China can feel overwhelming—but with the right support, it becomes a structured, strategic process. Woodburn Global is your trusted partner for market entry, offering:
WFOE & JV setup and registration
Legal structuring and compliance
Tax advisory and bookkeeping
Payroll, HR, and visa support
Trademark and IP protection
Ongoing strategic advisory
With decades of experience helping international businesses thrive in China, we help Irish companies establish a strong, compliant, and future-ready presence.
Start your China journey with confidence.
Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.
Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.