Skip to content
Service

Market Entry & Structure Advisory

The thinking that comes before the paperwork. Whether to enter China, in what form, in which city, with whom on the ground — and what it will really cost to run once the licence is framed on the wall.

In short: before you register anything, you need a decision, not a package. We assess whether you need a Chinese entity at all, compare the four realistic routes — no entity, employer of record, representative office, WFOE — and hand you a written recommendation covering vehicle, city, business scope, registered capital and three-year running cost. If the honest answer is “don’t enter yet,” you get that in writing too.

Why this page exists. Most China corporate-services firms sell you a company, because that is what they sell. The registration is the easy part — a licence you did not need, with a scope that does not cover what you invoice for, in a city that costs you money, is the expensive part.

The four routes, honestly compared

RouteRight whenRMB invoicingEmployTypical cost
No entityYou export to a Chinese buyer or platform and are paid offshoreNoNoNil
Employer of recordYou want 1–10 people on the ground while testing the marketNoVia the EOR≈US$800–1,500 pp/month
Rep officeLiaison, research, quality oversight — no sellingNo — cannot tradeDispatch onlyLow, taxed on expenses
WFOEYou must invoice in RMB, hire directly or hold a licenceYes, with fapiaoDirectlyUS$2,300–12,000 setup

Cost bands are current market ranges, not our quote — they exist so you can sanity-check anyone’s proposal, including ours. Verified July 2026.

What the review covers

Entry case

Demand, competition and route to customer in your category — and whether the China revenue justifies a China entity at all.

Vehicle & city

Which structure fits, and where to register it: free-trade zone, development-zone incentives, or simply where your people are.

Business scope wording

The narrowest Chinese scope that still covers everything you will invoice for. Getting this wrong is the most common and most annoying rework.

Negative list & licensing

Whether your sector is open, restricted or prohibited to foreign investors, and what post-registration licences or filings it triggers.

Registered capital

A figure the authority will accept and you can actually pay in — the 2024 Company Law requires subscribed capital to be paid within five years.

People on the ground

The four legal routes to having someone working for you in China, costed against your headcount plan, with the break-even point where an entity starts to win. See below.

Three-year running cost

Accounting, audit, tax, address, payroll burden and our fees, modelled out — so the decision is made on the full number, not the setup fee.

Getting people on the ground

Most entry decisions turn into a headcount question within a month, so the review costs it out. There are four legal ways to have someone working for you in China, they differ enormously in cost and consequence, and only one of them fits a given headcount plan.

RouteRight whenLegal consequence to watchTypical cost
Employer of record (EOR)1–10 people, testing the market, someone onboarded in 2–4 weeksProvider quality varies enormously; cheap providers under-declare social insurance and you inherit the problem≈US$800–1,500 pp/month above salary
Labour dispatch (劳务派遣)Genuinely temporary, auxiliary or substitute rolesCapped by law at 10% of the workforce and limited to non-core roles — not a general hiring workaroundAgency fee + statutory burden
Independent contractorA genuinely independent specialist with their own clients and hoursIf they work your hours under your direction, a labour arbitration commission will find employment regardless of the label — back social insurance, potentially double wages for the period with no written contract, severanceFee, plus the risk above
Your own entity10+ people, an RMB revenue line, or a role that must sign for youEmployer social insurance and housing fund add roughly 25–40% of gross salary depending on city≈US$18,000–30,000/yr compliance for a ten-person entity

Market ranges, verified July 2026 — so you can price-check any proposal, including one we bring you.

This is advisory. We do not recruit, employ, dispatch or payroll anyone. Where an employer-of-record is the answer, we compare providers, check whether they declare social insurance on the full salary or the local minimum base, and introduce a licensed one — and you contract with them directly. Employment terms, dismissals and disputes need a qualified Chinese employment lawyer, and we will say so plainly when you are at that point.

How it runs

  1. Consult (45 min). Your product, your buyer, your timeline. Often enough to rule out one or two routes on the spot.
  2. Research (1–2 weeks). Sector rules, negative list, licensing, city comparison, cost modelling, and calls in Mandarin where a question needs a real answer from a real bureau.
  3. Written recommendation. One document, in English, with the reasoning shown and every rule cited to its source. Yours to take to your board, your accountant, or another provider.
  4. Execution, if you want it. If the answer is “register,” we run it — see Company setup & compliance coordination. If it is “put two people on the ground first,” we compare the routes above and introduce a licensed provider.

Indicative pricing

ItemTypical basis
Entry & structure review (written, incl. headcount routes)from US$900, fixed fee agreed before we start
Sector deep-dive (licensing, competitor or pricing research)Quoted as an add-on
EOR provider comparison & introductionQuoted; the provider’s own fees are theirs and billed by them
Ongoing advisory retainerMonthly, for companies mid-entry
Consult creditThe consult fee is credited in full against the review

Fixed fee, and it is fine to stop after it. The review is a standalone product. Plenty of clients take the recommendation, decide not to enter this year, and come back in eighteen months. That is a good outcome, not a lost sale.

This is commercial and structuring advice, not legal or tax advice. We are not a law firm, not an accounting firm and not an employment agency — where a matter needs a licensed opinion (a legal opinion on a contract, a tax ruling, a statutory audit) or a licensed provider (an employer of record), we say so and work alongside them. Rules cited on this page were verified in July 2026; the negative list and local incentives change, and we re-check them for every engagement.

Ready to get this sorted?

Book a 45-minute consult. We map your situation to the right process, tell you honestly what is and is not possible, and give you a fixed fee. No obligation.

Book a consult · US$120 Credited in full against any service you go on to book.