Planning to start a business in Shanghai on your own? The following FAQs outline the key requirements, online procedures, and support services for registering a one-person company (OPC) or other types of business entities in the city.

1. Can an OPC only be registered as a one-person limited liability company?

No. Although OPC generally refers to a one-person company, there is no mandatory requirement on the type of business entity.

Depending on your business needs and eligibility, you may register as a limited liability company, partnership or another legally recognized market entity. No overseas investor may engage in investment and business activities in the capacity of an individually-owned business, an investor in a sole proprietorship enterprise, or a member of a farmers' cooperative.

2. What should I prepare before registering a limited liability company?

Before applying, you should determine the following basic information: company name, registered office (business address), shareholder(s), business scope, registered capital, and legal representative.

A company name is a statutory registration item and must comply with relevant laws and regulations. It must not harm national interests, public interests or public order, or violate generally accepted standards of public morality.

When you apply through Shanghai Online Business Registration, the system will automatically check whether your proposed company name complies with the relevant rules.

3. What are the requirements for a registered office? Can I use a residential address?

A company's registered office or principal place of business must comply with Shanghai's rules on business premises registration and other applicable regulations.

If a residential property in an urban area is used as a registered office, the property must not be an illegal building and the required procedures for changing its permitted use must be completed in accordance with relevant regulations.

For rural residential properties, additional requirements such as safety assessments and approval from relevant parties may apply.

4. Can a company register multiple business locations under one business license?

Yes. Companies may apply to the market regulation authority for a "one license, multiple locations" filing by submitting the required application form, proof of use of the additional business premises and a copy of the business license.

For a first-time filing, or when cancelling all previously filed locations, the original business license must also be submitted so that an updated license can be issued.

5. What information must shareholders provide? Are there any education or work experience requirements?

China operates a real-name registration system for market entities. Shareholders and other relevant persons must complete identity verification and provide information such as their names, identification document numbers, subscribed capital contributions, and contribution schedules.

There are no requirements to provide proof of education, professional training, a certificate of no criminal record, business plans, feasibility plans or financial plans.

In Shanghai, applicants completing company registration online through Shanghai Online Business Registration must complete identity verification and sign electronic documents using legally recognized electronic signatures. Foreign natural persons should follow the identity verification and signing methods accepted by the registration authority, which may differ from the facial recognition process used by holders of Chinese resident identity cards.

A company's legal representative is a director who executes company affairs or the company manager, as specified in the company's articles of association. Directors and senior managers may not concurrently serve as supervisors.

6. Is there a minimum registered capital requirement?

No. Under China's company law, the registered capital of a limited liability company is the amount of capital subscribed by all shareholders and registered with the registration authority.

Both domestic and overseas shareholders may subscribe registered capital in accordance with the company's articles of association. There is no minimum registered capital requirement.

7. How is the business scope determined?

A company's business activities are reflected through its registered business scope.

Foreign investors should first check whether the proposed business scope falls under the Special Administrative Measures (Negative List) for Foreign Investment Access. Investments in prohibited sectors are not allowed, and investments in restricted sectors must meet the conditions set out in the negative list. Business scope also includes general business items and licensed business items. If a licensed business item requires prior approval, the relevant approval documents must be submitted during registration.

Applicants using Shanghai Online Business Registration may select their business scope from the official standardized list. If you are unsure of the standard wording, you can search the business scope wording database.

8. Do I need to hire a professional agency to register a company?

No. Applicants may complete company establishment or registration changes on their own.

Shanghai Online Business Registration provides step-by-step guidance and automatically generates the required application forms and supporting documents.

Assistance is also available at registration service windows.

Application forms, document checklists and sample templates, including those for foreign-invested companies where applicable, are available under the Application for Registration, Materials Catalogue and Templates section of Shanghai Online Business Registration.

9. Can company registration be completed entirely online?

Yes. New businesses in Shanghai can complete the entire process online through Shanghai Online Business Registration.

The platform supports one-stop online processing for company registration, official seal engraving, tax-related registration, employee employment and social insurance registration.

The system automatically generates the required documents. Shareholders and other relevant persons must complete remote identity verification and electronic signatures before submitting the application online.

Foreign-invested enterprises should submit an initial foreign investment information report through the enterprise registration system when applying for registration. Once registration is approved, companies can download and use their electronic business license and electronic seals, and issue electronic invoices for business operations.

10. Is there any government fee for setting up a company? What information appears on the business license?

No. Company establishment in Shanghai is free of charge.

After registration, companies may obtain an electronic business license and electronic seals free of charge. Newly established companies may also receive one complimentary set of four physical seals, including a company seal, legal representative's seal, financial seal, and invoice seal.

Each company is assigned a unified social credit code, which serves as its unique national identification number.

The QR code printed on the business license is the enterprise identity code, allowing the public to access registration, licensing and other official company information by scanning it with WeChat or other supported apps.

11. How do I download and use an electronic business license?

After company registration, the legal representative may download the electronic business license according to the applicable identity verification method. Legal representatives who are foreign nationals may download the license on-site after identity verification at the registration authority, or authorize another person to submit the required confirmation form so that the registration authority can send the download QR code to the legal representative's designated email address.

The legal representative may also authorize others to manage and use the license.

For detailed instructions, please visit the relevant electronic business license guide on Shanghai Online Business Registration.

12. What should I do if my company information changes?

If registered information such as the company name, shareholders, articles of association or legal representative changes, the company should apply for registration changes or record filing within 30 days after the relevant resolution, decision or legally required change occurs.

Registration changes can also be completed online through Shanghai Online Business Registration, including online submission, electronic signatures and the issuance of an updated electronic business license.

Company registration information in Shanghai is stored in a unified database. Updated information is shared, as required, with relevant government departments, including tax and human resources authorities, so companies generally do not need to submit the same information separately.

Beneficial ownership information is also a statutory filing item and should be filed with the registration authority in accordance with the relevant regulations.

Service tips:

If the system displays "当前人员未表明代理身份" (the current user has not declared agency status), it means the person handling the application has chosen to act as a registration agent but has not completed the required declaration on the national market entity registration website.

The person handling the application should complete the declaration through the "我要表明代理身份" (declare agency status) function on the website, or appoint another qualified registration contact or registered agent.

If the system displays "当前人员已是其他经营主体登记联络员，不能再作为代理人" (the current user is already registered as the liaison for another market entity and cannot act as an agent), it indicates an identity conflict. The person handling the application should change the user's role in the current application or appoint another agent.

Disclaimer:

This FAQ is for general informational purposes only. Specific requirements may vary depending on the investor's status, business type, business scope and the latest laws, regulations and administrative requirements. Applicants should refer to the registration authority and official service platforms for the most up-to-date requirements.

Sources: General Office of the Shanghai Municipal People's Government; Shanghai Online Business Registration; Special Administrative Measures (Negative List) for Foreign Investment Access (2024 Edition); Company Law of the People's Republic of China; Measures for Reporting Foreign Investment Information; Electronic Business License guide on Shanghai Online Business Registration