China Business Glossary: Essential Terms for Foreign Investors

Setting up a business in China means learning a new business vocabulary — WFOE, fapiao, chops, SAFE and more. This glossary explains the essential Chinese business terms every foreign investor encounters, in plain English, written by the team at Dan Young Business Consultancy. New terms are added regularly.

Company Structures and Registration

• WFOE — a wholly foreign-owned enterprise: a Chinese limited liability company with 100% foreign ownership.
• Registered capital — the capital shareholders commit to contribute, declared on the business license.
• Business scope — the approved list of activities printed on the license.
• Legal representative — the person who legally represents the company and signs for it.

Daily Operations

• Company chop — the official company seal; contracts and filings are invalid without it.
• Fapiao — China’s state-regulated tax invoice, the backbone of the VAT system.
• SAFE — the State Administration of Foreign Exchange, gatekeeper of capital injections and profit repatriation.

Visas and People

• Z visa — China’s work visa, issued abroad and converted into a residence permit within 30 days of entry.

Beyond the Glossary

Definitions are the starting point — execution is where costs and delays hide. For the numbers, see our China company registration cost breakdown; for the full process, start with our company incorporation service. If a term you need is missing from this glossary, tell us through the contact page and we will add it.