How to Set Up a Consulting or Professional Services Company in China: Business Scope, Licenses, and Qualification Requirements

In most cases, setting up a consulting and professional services company in China allows full foreign ownership, but the company’s business scope and any sector-specific licenses determine what it can actually sell. This Q&A walks foreign investors through key decisions for setting up a consulting or professional services company in China: whether the sector is open, how to word the business scope, which professional services licenses apply, and how to plan capital, governance, and compliance.

For many foreign investors, a consulting or professional services company is a common vehicle for establishing a legal presence in China because it aligns with the activities they intend to carry out in the market. Establishing this type of wholly foreign-owned enterprise (WFOE) is often procedurally less complex than setting up a manufacturing operation or a business that requires specialised licenses. However, a straightforward registration process does not guarantee a smooth launch. The difference between a company that can begin operating immediately and one that faces delays in invoicing clients or delivering services often comes down to three issues that must be addressed before registration:

• The sector’s status under China’s negative lists;
• The precise wording of the business scope; and
• Whether the planned activities require additional permits or qualifications.

Below, we answer the questions investors most often ask when setting up a consulting or professional services company in China.

Can a foreign investor set up a wholly foreign-owned consulting company in China?

Yes, in most cases. Under the Foreign Investment Law, China manages foreign investment through a foreign investment negative list: any sector not listed is open to foreign investors on the same terms as domestic investors. Most consulting activities – management consulting, technology consulting, marketing and brand strategy, engineering consulting, design, HR consulting, and business information services – do not appear on the latest negative list and can therefore be carried out through a 100 percent foreign-owned limited liability company.

Which professional services remain restricted or prohibited for foreign investors?

The national Special Administrative Measures (Negative List) for Foreign Investment Access (2024 Edition), in force since 1 November 2024, contains only 29 restricted or prohibited items, many of which relate to service sectors.

That said, China has continued to expand market access through a series of pilot opening-up measures in sectors such as telecommunications, internet services, education, culture, and healthcare.

Moreover, in March 2026, the National Development and Reform Commission (NDRC) indicated that it plans further cuts during the 15th Five-Year Plan period (2026-2030).

Alongside these nationwide changes, China trials further service sector opening in designated locations. Beijing hosts the national comprehensive demonstration zone, and the comprehensive pilot program for expanding opening-up of the services sector now covers 20 locations: Beijing, Tianjin, Shanghai, Hainan, Chongqing, Shenyang, Nanjing, Hangzhou, Wuhan, Guangzhou, and Chengdu, plus nine cities added in April 2025 – Dalian, Ningbo, Xiamen, Qingdao, Shenzhen, Hefei, Fuzhou, Xi’an, and Suzhou. Separately, Beijing, Shanghai’s Lingang New Area, Hainan, and Shenzhen allow full foreign ownership of certain value-added telecom services, such as internet data centers and online data processing, under a pilot launched in 2024. Consulting firms whose services touch these areas may find more room to operate in a pilot location.

Foreign investors are also subject to the separate Market Access Negative List (2025 Edition), which applies equally to domestic and foreign companies and lists 106 activities that are prohibited or require a permit.

While the regulatory landscape continues to evolve, investors should verify both national restrictions and any applicable pilot policies in their intended location before establishing a business, as market access conditions can vary by sector and region.

For consulting and professional services businesses, the activities most commonly associated with foreign investment restrictions or ownership caps include:

If my sector is open, do I still need a professional services license?

Often, yes. Being off the negative list means a foreign investor may enter the sector; it does not exempt the company from qualification requirements that apply to every operator, domestic or foreign. Common examples include:

• Recruitment and headhunting: Job intermediary activities require a Human Resources Service Permit from the local human resources and social security bureau, valid for five years. Wholly foreign-owned HR service companies are permitted. By contrast, HR management consulting, HR outsourcing, assessment, and training generally require only a filing, not a permit.
• Tax services: Tax-related professional service providers must file with the tax authorities before offering tax agency services.
• Securities and investment advisory: Advice on securities and futures is a licensed financial activity regulated by the China Securities Regulatory Commission (CSRC); general business or financial consulting must be worded to exclude it.
• Internet-based services: Operating a commercial website, app, or SaaS platform may require an ICP filing or a value-added telecom license from the Ministry of Industry and Information Technology (MIIT).
• Healthcare-related consulting: Health management or medical consulting cannot include diagnosis or treatment, which require a medical institution license.

The practical rule: map every revenue line in your business plan to a license requirement before you file. A permit that is discovered late can delay operations by months, because most sector permits can only be applied for once the business license has been issued.

How should a consulting company draft its business scope?

The business scope is the legal boundary of what the company may do, and it matters more in China than in most jurisdictions. Since the Regulations on the Administration of the Registration of Market Entities took effect on 1 March 2022, business scopes must be selected from the standardized expressions published by the State Administration for Market Regulation (SAMR).

Each entry is classified as either a general item, which can be carried out once the business license is issued, or a licensed item, which requires further approval.

Typical general items for a consulting WFOE may include:

• Enterprise management consulting (企业管理咨询);
• Information consulting services, excluding licensed information consulting services (信息咨询服务（不含许可类信息咨询服务）);
• Marketing planning (市场营销策划);
• Technical services, technology development, technology consulting, technology exchange, technology transfer and technology promotion (技术服务、技术开发、技术咨询、技术交流、技术转让、技术推广); and
• Human resources services, excluding job intermediary activities and labour dispatch (人力资源服务（不含职业中介活动、劳务派遣服务）).

How much registered capital does a consulting company in China need?

There is no statutory minimum registered capital for a general consulting company. However, the revised Company Law, effective 1 July 2024, requires limited liability company shareholders to pay their subscribed capital in full within five years of incorporation. Companies established before that date with longer contribution periods have until 30 June 2027, to adjust.

Any change to the amount, method, or timetable of contributions must be disclosed through the National Enterprise Credit Information Publicity System within 20 working days.

This means registered capital is now a real commitment, not a paper figure. A sensible approach is to calculate the cash the company needs until it is self-funding, office rent, salaries and social insurance, setup fees, and a buffer for slow client payments, and set registered capital at or slightly above that level. Under-capitalizing can create problems with work permit applications for foreign staff, office leasing, and opening bank accounts; over-capitalizing ties up cash and exposes shareholders and directors to liability for unpaid contributions.

What are the steps and timeline to set up a consulting company in China?

A typical consulting company setup in China follows these stages:

1. Structure and location: Confirm the sector status, choose between a WFOE and an alternative structure, and select the city or district. Local incentives and free trade zone rules can differ.
2. Registered address: Secure a commercial lease for registration. Many cities restrict virtual or residential addresses.
3. Investor documents: Prepare the parent company’s certificate of incorporation and other identity documents. Since China joined the Apostille Convention on 7 November 2023, member-state documents can be apostilled rather than consular-legalized.
4. Name check and SAMR registration: File the company name, articles of association, business scope, and officer appointments with the local Administration for Market Regulation to obtain the business license. Complete foreign investment information reporting through the registration system at the same time.
5. Company seals: Carve and record the official company chop, finance chop, legal representative chop, and invoice chop.
6. Bank accounts and foreign exchange: Open a basic RMB account and a capital account, and complete foreign direct investment registration through the bank.
7. Tax, social insurance, and housing fund: Complete tax registration, invoicing setup, and employer registrations.
8. Sector licenses: Apply for any required permits, such as an HR Service Permit or ICP license, after the business license is issued.

For a general consulting WFOE with no sector permits, incorporation through bank account opening typically takes 2 to 3 months, depending on the city and document preparation. Companies that need sector licenses should allow extra time.

How can Dezan Shira and Associates help

Need help setting up your consulting company in China? Dezan Shira & Associates handles the whole process, from wording your business scope and registering the company to bank accounts, licenses and ongoing compliance. Contact us to speak with our business advisory team.