Published by ChinaMNC · Laohekou

China’s ‘15th Five-Year Plan’ and What It Means for Foreign Founders Registering a Company

China’s commerce ministry outlines pro-business reforms for the 15th Five-Year Plan period. Here’s what foreign founders should know about registering and operating a company in China.

Key Takeaways for Foreign Founders

China’s Ministry of Commerce (MOFCOM) recently outlined its priorities for the 15th Five-Year Plan period (2026–2030) at a State Council Information Office press conference. For foreign founders planning to register a company in China, the message is clear: the government is doubling down on attracting foreign investment, expanding free trade agreements, and improving services for foreign-invested enterprises. While the announcement did not introduce new registration procedures, it signals a continued commitment to making China an attractive destination for foreign entrepreneurs.

Here’s what the latest policy direction means for your China company registration and operations.

1. Foreign Investment Remains a Priority

MOFCOM reported that during the 14th Five-Year Plan period (2021–2025), China absorbed over US$750 billion in foreign direct investment (FDI) cumulatively. In the first three quarters of 2026, actual utilized foreign capital reached RMB 548.8 billion, with the stock of foreign investment remaining stable. The ministry emphasized its commitment to “improve the foreign investment service and guarantee system” and to “make China always a fertile ground for foreign investors.”

What this means for you: The government is actively working to retain and attract foreign investment. While specific registration requirements remain unchanged, expect continued efforts to streamline procedures and improve services for foreign-invested enterprises (FIEs). If you are considering setting up a wholly foreign-owned enterprise (WFOE) or a joint venture, the policy environment is supportive.

2. Free Trade Agreements Expand Market Access

China has signed 26 free trade agreements with 33 countries and regions, covering 45% of its total trade and 70% of its FDI. In 2026, China completed upgrades to its FTAs with Switzerland and Georgia, incorporating new rules on digital trade, artificial intelligence, and sustainable development. The ministry also signed framework agreements with 40 African countries and 8 Pacific island nations, and early harvest arrangements with Congo, Kenya, and Seychelles.

What this means for you: If your company sources goods from or exports to these FTA partners, you may benefit from reduced tariffs and improved market access. When registering your China entity, consider how your business can leverage these agreements—for example, by locating production or procurement in China to take advantage of preferential trade terms.

3. Consumption and Import Promotion Create Opportunities

MOFCOM highlighted the growing popularity of “China Haul” among foreign shoppers, reflecting increased interest in Chinese consumer goods. The ministry aims to “continue to build the ‘Export to China’ brand” and bring more global products to Chinese consumers. It also noted that inbound consumption is shifting from traditional specialties like tea and silk to tech products, guochao (national trend) fashion, Chinese wellness, and beauty products.

What this means for you: If your business involves retail, e-commerce, or consumer goods, China’s market offers expanding opportunities. However, registering a company to conduct retail or import activities may require specific licenses (e.g., for food, cosmetics, or e-commerce). Ensure you understand the sector-specific requirements before proceeding.

4. Compliance and Risk Management Are Emphasized

The ministry stressed the importance of “coordinating development and security” and “improving the risk prevention system in the commerce sector.” It mentioned optimizing trade friction response mechanisms, improving export control and security review systems, and strengthening laws and regulations on countering sanctions, interference, and long-arm jurisdiction.

What this means for you: Foreign founders must prioritize compliance, especially if your business involves dual-use items, critical technologies, or data. China’s export control and security review regimes are evolving. When registering your company, consider whether your activities may trigger additional filing or approval requirements. Establishing robust internal compliance protocols from the outset is advisable.

5. Business Environment Improvements Continue

Although the press conference did not detail specific registration reforms, the overall thrust of MOFCOM’s agenda—expanding openness, improving services, and enhancing the business environment—suggests that foreign founders can expect a relatively stable and increasingly facilitative registration process. The ministry’s focus on “high-quality development” and “high-standard opening up” indicates that foreign investment will remain welcome in most sectors, with negative lists defining restricted areas.

What this means for you: The fundamentals of company registration in China—choosing an entity type, securing a registered address, preparing documents, and obtaining approvals—remain consistent. However, staying informed about sector-specific policies and FTA developments can help you structure your investment optimally.

Practical Steps for Registering Your China Company

Based on the policy direction, here is a checklist for foreign founders:

• Choose your entity type: A wholly foreign-owned enterprise (WFOE) is common for most foreign founders. Joint ventures may be required in restricted sectors.
• Check the negative list: Ensure your business scope is not on the prohibited or restricted list. The negative list is updated periodically.
• Prepare documents: Typically includes passport copies of legal representatives, proof of address, and articles of association. Some documents may require notarization and authentication.
• Registered capital: There is no minimum for most industries, but capital should be sufficient for operations. Some sectors have specific requirements.
• Obtain licenses: After registration, you may need additional permits (e.g., for food, education, or logistics).
• Tax registration: Register with tax authorities and understand your VAT and corporate income tax obligations.
• Compliance: Set up accounting, payroll, and annual reporting systems. Consider export control and data security if applicable.

While the government continues to improve the business environment, the process can still be complex. Seeking professional advice is recommended.

Conclusion

China’s 15th Five-Year Plan period promises continuity in foreign investment policy, with a focus on high-quality development and openness. For foreign founders, the key is to stay informed, choose the right entity structure, and ensure compliance from day one. The government’s emphasis on expanding FTAs and promoting imports could open new doors for your business.

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

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