The Setup Process: Step-by-Step
This tab is for international investors—foreign individuals (any nationality; a U.S. citizen founder is a common example) or a foreign parent company—setting up a WFOE—a wholly foreign-owned enterprise (外商独资企业), the usual mainland vehicle for foreign investment. Work the steps in order; optional detail is folded below. Before step 5, confirm your planned CAD/design activity fits your registered scope, the 2024 FI negative list, and any sector licence—not a permit-restricted construction-design category. Budget registered capital (steps 8–9) and operating costs before you file.
Foreign hires on the mainland: payroll generally requires a valid work permit (e.g. Z visa / 工作许可) tied to this entity—not a tourist or business visa alone.
Right column: rough cash-impact hints (2024–2025 style ranges). Not quotes—city, bank, and agent change outcomes. Currency rule: All amounts below are estimated in RMB first (what you pay onshore in China, or planning equivalents for overseas bank/notary lines); switch to English to see USD = RMB ÷ USD/CNY using the same rate as under Financials (live when the feed loads, otherwise a 2024-avg fallback of 7.2). The dashboard chart still follows the same RMB→USD rule when you pick USD.
Entity path comparison (at a glance)
Factual summary for planning—not legal advice. Timelines and fees vary by city, sector, and counsel.
| Topic | WFOE | Domestic LLC | Sino-foreign JV (FIE LLC) | Hong Kong | Macau |
|---|---|---|---|---|---|
| Legal vehicle | Wholly foreign-owned enterprise (外商独资企业) | 内资有限责任公司 | 外商投资有限责任公司 (post-FIL LLC) | Private company limited by shares | Lda. (有限公司) |
| Foreign ownership | 100% foreign (non-restricted sectors) | Domestic shareholders only | Foreign + Chinese mix per 2024 negative list | 100% foreign allowed | 100% foreign allowed |
| Mainland-based staff | Yes — mainland payroll + 五险一金 | Yes — mainland payroll + 五险一金 | Yes — mainland payroll + 五险一金 | No — SAR employment only; mainland staff need mainland entity | No — SAR employment only; mainland staff need mainland entity |
| Mainland VAT fapiao (数电票) | Yes — via mainland tax bureau | Yes — via mainland tax bureau | Yes — via mainland tax bureau | No — SAR invoices; mainland clients usually need mainland entity fapiao | No — SAR invoices; mainland clients usually need mainland entity fapiao |
| Typical registration | AMR + FDI report; often 2–8 weeks (bank longer) | 一窗通; often 1 business day when complete | AMR + partner docs; often 4–12+ weeks | e-Services ~1 hr to 4 business days | CRCBM + notary; ~2–3 weeks |
| Registered capital | Subscribed; 5-year pay-in (2024 Company Law) | Subscribed; 5-year pay-in (2024 Company Law) | Subscribed + equity split; 5-year pay-in | Nominal share capital (often HKD 1+) | MOP subscribed per articles (sector rules apply) |
| Planning setup band (tier-1) | Agency ¥12k–40k+; full-service ¥100k+ (see step fees) | Agent ¥500–15k+ full-service | Legal + agency ¥18k–250k+ | Agency ~HKD 3k–10k+ (bank KYC separate) | Notary + registration ~MOP 10k+ |
Engineering Talent Hubs
This section organizes 24 cities across Greater China—the Greater Bay Area, East China, the northern coast, inland & Central Plains, the southwest, and Hainan—so you can compare salary and cost patterns without mixing geography.
Greater Bay Area (GBA) & South
Show or hide regional context for the Greater Bay Area Special about the GBA for AEC teams
The Pearl River Delta ties manufacturing, finance, and design: Shenzhen and Guangzhou anchor large engineering talent pools, while Hong Kong and Macau (SARs) offer different pay and contribution profiles. Zhuhai is a lower-cost GBA entry point at the Macau border.
Shenzhen
Hardware & Tech capital. High demand, fast-paced CAD talent.
Guangzhou
Traditional trade/manufacturing hub. Excellent engineering base.
Hong Kong
Global finance/design. Highest base pay; lowest modeled employer payroll statutory burden (MPF capped).
Macau
Hospitality/Architecture focus. Unique labor market; very low modeled employer payroll statutory (flat FSS).
Zhuhai
Bordering Macau. Beautiful coastal city, cost-effective GBA access.
East China Hubs
Show or hide regional context for East China hubs Special about East China hubs
The Yangtze corridor combines Shanghai’s international practices, Hangzhou’s digital economy, Nanjing’s civil-engineering depth, Hefei’s advanced manufacturing, and Suzhou’s industrial-park and manufacturing-adjacent design talent—often the most competitive salary bands outside the GBA.
Shanghai
Premium international hub. Tongji Univ. architecture talent.
Hangzhou
E-commerce/Tech hub (Alibaba). Highly competitive, modern skills.
Nanjing
Historical capital. Elite civil engineering talent (Southeast Univ).
Hefei
Rapidly rising EV & tech manufacturing center. Excellent value.
Suzhou
SIP & manufacturing belt; strong BIM/CAD demand, salaries often just below Shanghai.
North, Inland & Central Plains
Show or hide regional context for north, inland and central plains hubs Special about north, inland & central plains
North & northeast coast: Beijing, Tianjin, Harbin, Qingdao, and Dalian—policy hubs, Bohai/Yellow Sea ports, and the lowest salary bands in this row. Inland & plains: Zhengzhou (Henan / Central Plains), Wuhan (Yangtze middle), Changsha (Hunan), and Xi'an (northwest interior)—large graduate pools and moderate rents. This block is not “Southwest China”; see the next section for Sichuan/Chongqing/Yunnan.
Beijing
Political & educational center. Premium salaries, top-tier engineering talent.
Tianjin
Major port, ~30 min from Beijing South by intercity HSR (station to station). Heavy industrial design focus.
Harbin
Northeast industrial base. Lowest costs, legendary technical university.
Qingdao
Shandong coastal port; manufacturing & marine engineering; Grade A office costs above inland peers.
Dalian
Liaoning port & shipbuilding heritage; heating season lifts utility load versus south coast.
Zhengzhou
Henan / Central Plains logistics hub; north–inland corridor; affordable Grade A.
Wuhan
Yangtze middle hub; huge graduate pipeline.
Changsha
Hunan capital; engineering & media; central-south inland.
Xi'an
Northwest interior; aerospace/defense; 3D skills.
Southwest China
Show or hide regional context for Southwest China Special about Southwest China
Southwest here means Sichuan (Chengdu), Chongqing municipality, and Yunnan (Kunming)—the western/southwestern cluster, separate from “Central Plains” (e.g. Zhengzhou) or the Yangtze-middle inland hubs (e.g. Wuhan) above.
Chengdu
Sichuan basin hub; high quality of life; strong BIM talent.
Chongqing
Mountain megacity; huge talent pool; inland delivery base.
Kunming
Yunnan gateway; mild climate; smaller AEC market than Chengdu/Chongqing.
Hainan Free Trade Port (Island)
Show or hide Hainan Free Trade Port policy context Special about Hainan
The whole province operates as the Hainan Free Trade Port. Since the 18 Dec 2025 island-wide special customs launch, qualifying FTP entities importing from abroad generally receive zero import tariff on goods not on the taxable negative list (~74% of tariff lines at zero); VAT and consumption tax follow FTP goods-tax rules—not a blanket “zero everything” for every category. Shipments to the mainland remain subject to “second-line” rules unless substantially transformed on-island. This is aimed at tourism, modern services, high-tech, healthcare, and logistics.
- Corporate income tax: 15% for qualifying enterprises in encouraged industries with ≥60% of revenue from the encouraged main business plus substantive operations (policy extended in phases; verify end dates with counsel).
- Personal income tax: Eligible high-end and urgently-needed talent may cap the effective burden at 15% on qualifying Hainan-sourced income (rules for residency and recognition apply; confirm active frameworks with counsel).
Figures below use typical employer social-insurance + housing-fund burdens for Haikou/Sanya; they do not replace tax or legal advice.
Haikou
Provincial capital and main policy/admin hub. Stronger pool for corporate, infrastructure, and design roles than smaller island cities; lower typical engineering base pay than tier-1 coastal cities but improving with FTP investment. 15% tax rates require encouraged-industry + substantive operations—not automatic.
Sanya
Tourism and hospitality economy; higher cost of living and smaller technical labour market, so CAD/engineering packages often include a retention premium versus Haikou for comparable seniority. 15% tax rates require encouraged-industry + substantive operations—not automatic.
Annual Financial Modeling Dashboard
This interactive dashboard calculates the Annual Total Cost of Employment. It automatically multiplies base salaries by 12 and calculates the localized employer statutory contributions (5 Insurances & 1 Fund / MPF) for all 24 cities. Base salaries follow 2024–2025 hiring surveys (e.g. Liepin, 51job, i人事); office rent uses citywide Grade A/B effective averages from CIH, JLL, Savills, Knight Frank, Colliers (mostly Q3–Q4 2024), with utilities scaled for climate/heating. All figures remain planning estimates, not quotes. Currency rule: City and overhead inputs are stored in RMB; when you pick USD, the chart divides by USD/CNY (live when the feed loads, otherwise a 2024-avg fallback of 7.2)—never the other way around. Optionally add modeled overhead per employee—rent, workspace kit, utilities, and AEC software (see methodology below). Click any city's bar for the micro breakdown. For setup context, see Setup Steps 8–9.
International benchmark notice
You have selected a global city outside Greater China. Salaries and local occupancy are modeled in USD and converted to RMB for comparison using the same USD/CNY rate as the chart. Employer statutory loads are planning percentages—not mainland social insurance.
SAR Legal Structure Notice
You have selected a Special Administrative Region. Base salaries are generally higher, but employer statutory payroll uses MPF (HK, capped) or flat FSS (MO)—not mainland 五险一金. An SAR company cannot hire mainland-based staff or issue mainland VAT fapiao (数电票); use a mainland WFOE/JV for onshore payroll and invoicing. Chart values are RMB/USD equivalents for comparison only.
Cross-city bars compare annual employment cost under each jurisdiction’s payroll rules—mainland cities use 五险一金-style loads; Hong Kong/Macau use MPF/FSS (not mainland social insurance). SAR and international bars are not substitutes for a mainland entity when you need onshore staff or mainland fapiao.
Annual Macro Comparison: Junior CAD
Total Annual Cost (Base + Contributions) for 1 employee(s).
Annual Micro Breakdown: Shanghai
Annual Base vs. Employer "5 Insurances & 1 Fund" ()
Mainland Contributions: Employer statutory contributions include Pension, Medical (9% in this model—maternity often merged into medical in many cities), Unemployment, Work Injury, and Housing Fund. Rates fluctuate by municipality; donut slices are illustrative.
Methodology, sources & disclosure
Data sources
Base salaries follow 2024–2025 hiring surveys (Liepin, 51job, i人事); office rent uses citywide Grade A/B effective averages from CIH, JLL, Savills, Knight Frank, Colliers (mostly Q3–Q4 2024), with utilities scaled for climate/heating. Software pricing uses Autodesk AEC Collection public US list (~USD 3,560–3,795/user/year, 2025–2026) and Rhino commercial (~USD 995 perpetual). All figures are planning estimates, not quotes.
Modeling rule
Salaries, rent, contributions, and overhead are stored RMB-first; USD display always divides RMB totals by USD/CNY (live feed when available, otherwise a 2024-avg fallback rate of 7.2). Hong Kong and Macau figures are stored as pre-converted RMB planning equivalents (reviewed Q4 2024)—HK MPF is capped at HKD 1,500/month employer; Macau FSS employer share is a flat MOP 60/month.
Last reviewed
Data as of 2024 Q4; last reviewed 2026-04. Regulatory references (e.g. PRC Company Law revised 1 Jul 2024) are noted inline at the relevant step.
AI assistance
This page was compiled with AI assistance (Gemini 3.1 Pro, April 2026) from the public sources listed above and reviewed by the author. Treat as a starting outline, not as authoritative legal or tax advice.