Office Requirements in China: Location, Lease, and Virtual Office Rules
- Roman Verzin
- May 5
- 3 min read
Updated: Jul 9
Let’s talk about your company’s office in China.
Most registration agents offer what they call a “virtual office.” But it’s not digital — and not really virtual either. Usually, it means a physical office rented by another company, where your company name is temporarily placed on the door. It’s often enough to register the company, and sometimes even open a basic bank account.
But that’s just the beginning. The real question is: what will your company actually do?
Different office types — and what they mean in practice
If you’re doing consulting or local B2B services — a basic office setup can be enough.
But if your business involves import or export, you’ll eventually want to claim VAT refunds. And that’s where real inspections begin.
When you apply for VAT refunds, the tax bureau may send inspectors. Here’s what they usually want to see:
A real office
At least 30 square meters (requirements vary by region — always double-check)
A lease agreement registered with the authorities (called 红本 / hóngběn)
Local staff on payroll
Social insurance payments
Evidence of actual business activity
Fail to meet these criteria — and you may never receive VAT refunds. That means you’re losing up to 13% of your purchase price on every shipment.
Can I use a co-working space?
Yes — in some cases.
Co-working offices are widely used in big cities. Banks often accept them for company registration or account opening.
But again — it depends on your business:
✅ Suitable for consulting, domestic sales, or early-stage presence
❌ Not enough for import/export — unless you rent a private space with proper size and documents
The most common mistake: renting the wrong place
Before you sign any lease, confirm that your landlord can provide a valid 红本 (hóngběn) — an official lease registration certificate.
Even if you don’t need it immediately, you may need it later to:
Register with tax authorities
Apply for licenses
Claim VAT refunds
Prove legal presence during inspections
If your office lacks this document, you might be forced to move — and go through the whole process again.
Smart strategy — step by step
If your company is just starting, and you don’t need tax refunds yet, you can use a minimal office or a shared space.
But once your activity grows, or you plan to trade and export — prepare for a proper office.
✅ Start lean
✅ Upgrade when needed
✅ Don’t cut corners if your business needs real compliance
Because in China, your office is more than just an address. It’s a signal of substance. And substance builds trust with banks, partners, and regulators.
How to choose the right location?
Simple rule: use business logic.
Have suppliers in Jiangsu Province? Consider registering in Jiangsu — or Shanghai, if it’s nearby.
Doing business in electronics? Base your company in Guangdong — Shenzhen, Dongguan, or Guangzhou.
Your director lives in Beijing? Register there — it cuts logistics costs and saves time.
Should you hunt for tax incentives?
Almost always — no. Unless you’re investing millions in a strategic industry, don’t waste time. These incentives are rare, hard to get, and rarely apply to small trading businesses.
But if you are a large investor entering a supported sector, China may offer:
Tax discounts
Export subsidies
Free or subsidized office space
Support from local government (which, in practice, often means faster solutions to your problems)
We’ll cover this in more detail in Part 14 — about strategic industries and government support.
Final note
Choosing the right office setup — and location — affects your registration, your taxes, and your credibility.
At United Suppliers Group, we help foreign founders structure their China presence based on real business needs — not just what looks cheap on paper.
Need help choosing a city, verifying a lease, or checking whether your office meets local rules? Reach out to us — and we’ll help build something solid.