China Business Setup Cost Calculator
Get a comprehensive cost breakdown for starting your business in China. Includes registration, office, staff, and ongoing operational expenses.
Business Configuration
Estimated First Year Cost
¥0
All costs in CNY (RMB)
Source: Compiled from agency quotes (2026 Q1), official government fee schedules, and city-level market data. Costs are mid-point estimates; actual costs vary ±15-25% based on specific requirements. Salary figures include social insurance and housing fund (employer portion). View data sources →
⚠️ These are estimates for planning only — obtain formal quotes from licensed agencies for budgeting.
Cost Breakdown
1 One-time Setup Costs
2 Operating Costs (Period)
Cost Distribution
Tips to Reduce Setup Costs
Choose FTZ location
Free Trade Zones offer tax breaks and lower setup costs
Use virtual office
Save on physical office rent during initial phase
Hire local accounting firm
More cost-effective than international firms
Consider second-tier cities
Shenzhen, Hangzhou offer lower costs than Shanghai/Beijing
Sensitivity Analysis
5 Questions to Ask Your Accountant / Agency
- 1."What is included in your setup package, and what costs extra?" — some agencies quote low base fees but charge separately for bank account opening, seals, and tax registration.
- 2."What is the monthly bookkeeping fee, and does it include VAT filing and annual audit?" — ensure recurring costs are transparent and not just the first year.
- 3."Do you handle work permit and residence permit applications for foreign staff?" — some agencies outsource this, adding markup.
- 4."Which city's tax bureau will we be registered with, and are there local tax incentives?" — city selection affects CIT rate and available incentives.
- 5."What are the annual compliance costs after year one?" — annual audit, CIT reconciliation, and business report filing have ongoing fees.
Hidden Costs
Notary fees, translation, travel expenses, and legal consultation can add 10-15% to your budget.
Registered Capital
No minimum required for most industries, but you need sufficient funds for operations and credibility.
Annual Costs
After year one, expect accounting, audit, license renewal, and office costs to continue.