Business in China / 02

Business activities & restrictions

Explore the questions below.

Updated 7 October 2026 · Mainland China · Requirements depend on your activity and location.

Section 01

Business activities

What business activities can my company carry out?

Your company can carry out activities covered by its registered business scope, provided they are open to foreign investment and any required licences or filings are in place.

Common starting points include trading ordinary goods, sourcing support, general business consulting and software development. What matters is the activity itself—not simply whether you call the company a trading or technology company.

Tell us what you plan to sell, who your customers are and how you will earn revenue. We help translate that into a suitable business scope and identify additional requirements.

Can I combine trading, consulting and other services?

In many cases, yes. You do not necessarily need a separate company for every source of revenue.

A company may sell products while also providing sourcing support and general business consulting, provided each activity is permitted and properly included in its business scope.

Cover your initial business and realistic next steps. Adding unrelated activities does not give unrestricted permission to operate; some activities still require separate approvals.

Section 02

Licences & permissions

Which business activities need additional licences or registrations?

Some activities require licences, filings or registrations beyond your business licence. Common examples include:

  • Recruitment and headhunting: a Human Resources Service Licence for employment intermediary activities. Other HR services may follow a filing process.
  • Labour dispatch: a separate Labour Dispatch Business Licence, distinct from recruiting employees for a client.
  • Food sales and catering: a Food Business Licence, or a filing for businesses only selling prepackaged food. Food production has separate licensing requirements.
  • Imports and exports: customs registration when acting as importer or exporter. Certain goods require product-specific licences or other approvals.
  • Websites and online platforms: mainland-hosted websites generally need an ICP filing. Certain online services require a value-added telecommunications licence, such as an ICP or EDI licence, depending on the activity and applicable rules.

These are examples, not a checklist for every company. Foreign investment eligibility must also be checked separately, particularly for regulated online services.

Describe what you will actually sell or provide. We help identify the requirements before you commit to setup.

Is a low-cost registered address enough for my business?

A low-cost registered address can be a practical starting point, but it must support what your company will do after registration.

  • Trading and export tax refunds: tax authorities may check premises, personnel, records and business capacity against the exports reported. A registration address alone does not demonstrate genuine operations.
  • Recruitment and labour dispatch: licensing conditions can include suitable premises and facilities.
  • Goods handling and storage: consider where stock, packing and regulated products will be handled and whether the facilities are suitable.
  • Small service businesses: needs may be simpler, but address arrangements should still support the activity and applicable verification.

This does not mean every business needs a large private office or its own warehouse. Choose arrangements that fit your operations and can be documented.

Spend only on the space you need—but choose an address that supports what comes next.

Section 03

Investment restrictions

Which industries restrict or prohibit foreign investment?

China’s foreign investment Negative List identifies activities that are prohibited or subject to special conditions, such as ownership limits or requirements for Chinese control.

Examples include restrictions in certain telecommunications and educational activities, and prohibitions covering compulsory education institutions and certain news and publishing activities. These examples are not a complete list.

The exact activity, location and any applicable pilot measures matter. A broad description such as education, media or online business is not enough to determine eligibility.

Check the specific activity before choosing shareholders, committing to premises or paying for setup. Activities outside the Negative List may still require industry licences.

How can I check whether my proposed activity is allowed?

Start with a plain-English description of your business:

  • What will you sell or provide?
  • Who will buy it, and in which countries?
  • Will you operate online, from an office or from customer-facing premises?
  • Where in China do you plan to operate?

We can then review foreign investment access, business scope, and relevant licensing or premises requirements.

You do not need to know the registration terminology. Describe how the business will work; we help identify what your setup needs.

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