Published by ChinaMNC · Yongshan

China Marks 90th Anniversary of the Long March: What Foreign Founders Should Take Away for Company Registration and Operations

A high-level national commemoration in Beijing offers foreign founders a lens on the policy themes shaping China's business environment — from high-quality development and rule-of-law-based governance to coordination of development and security. Here is a practical read on entity choice, registration steps, documents, capital, licensing, tax and compliance.

On 22 October, a national commemorative meeting marking the 90th anniversary of the victory of the Chinese Workers' and Peasants' Red Army's Long March was held at the Great Hall of the People in Beijing. President Xi Jinping delivered an important speech, and senior leaders including Li Qiang, Zhao Leji, Wang Huning, Cai Qi, Ding Xuexiang, Li Xi and Vice President Han Zheng attended. Roughly 3,000 people participated, including central and municipal officials, representatives of democratic parties and the All-China Federation of Industry and Commerce, non-party figures, veterans' representatives, military personnel and residents of the capital.

For foreign founders, the event itself is not a business story. What matters is the policy language used at the highest level, because that language frames how regulators, local authorities and courts approach market entry, corporate governance and compliance. Below we translate the speech's core themes into practical questions founders should ask before and after registering a company in China.

What the speech signals for the business environment

High-quality development as the organizing theme

Xi said the new journey requires unswervingly advancing high-quality development, meeting people's growing needs for a better life, pursuing the integrated "Five-Sphere" plan and the "Four-Pronged" strategic layout, achieving both qualitative improvement and reasonable quantitative growth in the economy, and promoting common prosperity. For founders, the takeaway is that investment screening, industrial policy and local incentives are increasingly organized around quality — technology intensity, value added, environmental standards and alignment with local development plans — rather than sheer scale. When you choose a business scope and a location, expect questions about how your project fits these priorities.

Development and security handled together

The speech called for better coordination of development and security and for tackling risks and challenges with a proactive spirit. In practice, this reinforces the existing trend of tighter screening in data, cybersecurity, export control and foreign investment security review. Founders should plan compliance functions from day one rather than retrofitting them after registration.

Independent thinking and facts-based approaches

Xi stressed that Marxism only works in China when combined with China's concrete realities, and that the victory was achieved through independent, fact-based decision-making. Read commercially, this supports a regulatory culture that prizes documentation, substance and verifiable facts over boilerplate. Prepare registration files and licence applications that accurately describe what the company will actually do.

Rule of law and party leadership

The speech underlined upholding party leadership and strengthening party building, including full and rigorous self-governance. For companies, the practical counterpart is continuity in policy direction and a compliance environment in which formal requirements — filings, approvals, disclosures — are enforced. Assume formalities will be checked.

Entity choice: what to weigh first

The source does not discuss corporate forms, so the following is orientation rather than legal advice. Most foreign investors choose between a wholly foreign-owned enterprise (WFOE), a Sino-foreign equity joint venture, and a branch or representative office of a foreign company. A WFOE is common where the founder wants full control and needs to invoice customers and repatriate profits; a joint venture can make sense where a local partner brings licences, distribution or sector access; a representative office is limited to liaison activities and cannot earn revenue. The choice drives capital, licensing and tax outcomes, so decide it before drafting documents.

Registration steps founders should expect

• Name pre-approval and business scope: reserve the company name and define the scope of business using the standard catalogue. Scope wording determines which licences apply.
• Registered address: secure a compliant office or approved virtual address in the jurisdiction where you register; local rules vary.
• Formation filing with the market regulator: submit the application, articles of association, investor documents and appointment papers for the legal representative, directors, supervisor and manager.
• Post-registration steps: seal carving, bank account opening, tax registration and invoicing setup, foreign exchange registration, and social insurance and housing fund enrolment where staff are hired.
• Sector licences: obtain pre- or post-approval permits if your activity sits on a restricted or licensed list.

Documents, capital and foreign exchange

Expect to provide notarised and, where required, legalised or apostilled incorporation documents of the foreign investor, proof of address, identity documents of officers, and a bank reference in some cases. Capital: many sectors no longer impose a minimum registered capital, but the subscribed amount must be realistic because it defines liability and is subject to contribution deadlines. Foreign currency capital contributions require foreign exchange registration and are channelled through a capital account; keep documentation for every remittance.

Tax and ongoing compliance

Newly registered companies must complete tax registration and understand invoicing rules, VAT treatment of their services or goods, and corporate income tax obligations. Monthly or quarterly filings, annual reporting, statutory audits where required, and timely updates when directors, addresses or scope change are routine obligations. The speech's emphasis on discipline and self-improvement is a fair description of the compliance posture regulators expect: accurate filings, maintained records and prompt remediation.

Practical checklist before you file

• Confirm whether your sector is encouraged, restricted or prohibited for foreign investment, and whether a licence is needed.
• Match business scope wording to actual activities to avoid rejected licence applications.
• Set registered capital you can fund within the contribution period.
• Appoint a legal representative and officers who can sign and be reached locally.
• Budget for post-registration compliance: bookkeeping, filings, audits and renewals.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

Need help? Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.