Published by ChinaMNC · Dancheng

China's 77th Anniversary Speech: What Foreign Founders Need to Know

A high-level government speech marking the PRC's 77th anniversary reaffirms economic priorities. Here's how foreign founders can interpret it for company registration and operations in China.

Key Takeaways for Foreign Founders

The official speech delivered at the 77th anniversary reception of the People's Republic of China, held on September 30 in Beijing, outlined broad policy directions. While the event itself is ceremonial, the remarks by President Xi Jinping signal continuity in economic policy that directly affects foreign entrepreneurs planning to register and run a company in China. Below we break down the practical implications.

• Policy stability emphasized: The speech highlighted the resilience and vitality of China's economy, and a commitment to the principle of "seeking progress while maintaining stability." For foreign founders, this suggests a regulatory environment that favors steady, predictable processes for company registration and operation.
• Continued reform and opening-up: The leadership reaffirmed the need to deepen reform and opening-up. This is relevant for foreign investors because it implies ongoing efforts to streamline business registration, ease market access, and improve the business environment.
• Focus on the 15th Five-Year Plan: The speech mentioned the formulation and implementation of the 15th Five-Year Plan (2026-2030). Foreign founders should monitor this plan for sector-specific incentives and regulatory changes that may affect their industry.
• Hong Kong and Macau integration: Support for Hong Kong and Macau to better integrate into national development may create additional opportunities for foreign companies using these regions as a springboard into mainland China.

Entity Choice and Registration Steps

The speech did not introduce new registration procedures, but its emphasis on stability and reform suggests that existing processes will remain consistent. Foreign founders typically choose between a wholly foreign-owned enterprise (WFOE), a joint venture (JV), or a representative office (RO). The WFOE remains the most common structure for foreign investors seeking full control.

Registration steps generally include:

• Name pre-approval with the local Administration for Market Regulation (AMR).
• Submission of articles of association and other documents to the AMR.
• Obtaining a business license.
• Post-registration filings, such as tax registration, bank account opening, and foreign exchange registration.

The speech's focus on improving governance and modernizing the state system could lead to further digitalization and simplification of these steps, reducing time and paperwork for foreign founders.

Capital Requirements and Compliance

China has largely moved to a subscribed capital system, meaning founders can set their own registered capital and contribution timeline, though certain industries have minimum requirements. The speech's stress on "coordinating development and security" may indicate continued scrutiny in sensitive sectors, so foreign founders should ensure compliance with foreign investment negative list and national security review rules.

Tax compliance remains critical. The speech did not announce tax changes, but the broader policy direction of supporting economic growth and innovation may lead to incentives for high-tech and encouraged industries. Foreign founders should consult local tax authorities or professional advisors to understand applicable taxes, including corporate income tax, value-added tax, and individual income tax for expatriate staff.

Licenses and Sector-Specific Rules

While the speech did not address specific licensing, foreign founders must obtain industry-specific permits (e.g., for education, healthcare, e-commerce). The commitment to "better integrate Hong Kong and Macau into national development" may facilitate cross-border licensing recognition in the Greater Bay Area, but this is not explicitly stated. Founders should verify current requirements with local authorities.

Implications of the 15th Five-Year Plan

The 15th Five-Year Plan will set economic and social development targets for 2026-2030. Foreign founders should watch for details on priority sectors, such as advanced manufacturing, green technology, and digital economy, where incentives or relaxed foreign ownership rules may apply. The speech's mention of "new development pattern" and "high-quality development" suggests continued focus on innovation and sustainability.

Hong Kong and Macau: Gateway Opportunities

The reaffirmation of the "one country, two systems" principle and support for Hong Kong and Macau to "better integrate into and serve the overall development of the country" may benefit foreign founders using these regions for holding companies or regional headquarters. However, the speech did not announce new measures, so existing frameworks remain.

Foreign Policy and Business Environment

The speech reiterated China's independent foreign policy and commitment to global initiatives, which could contribute to a more stable international business environment. For foreign founders, this signals China's continued openness to foreign investment, but geopolitical factors should be monitored.

Conclusion

The 77th anniversary speech did not introduce new policies specifically for foreign company registration, but it reinforced the government's focus on economic stability, reform, and opening-up. Foreign founders can expect continuity in registration processes and potential incentives aligned with the 15th Five-Year Plan. Staying informed about sector-specific regulations and maintaining compliance remains essential.

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

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