Want to open up a restaurant or other food business in China? Hold on a second! Serving up tasty treats in the PRC requires more than just getting a good chef and the perfect location – it also means seeing to a ton of bureaucracy. 

The first issue is that as a foreigner you cannot simply register a restaurant business as a sole trader and start serving up ironic gourmetchuan’r to hipsters. Chinese regulations on sole traders say that only Chinese citizens (including Chinese citizens permanently residing in the Hong Kong and Macao Special Administration Regions), and citizens of Taiwan can register as sole traders.

Foreigners, meanwhile, have to first register a limited liability company before they can get involved in the food service industry; this can take the form of either a Wholly Foreign Owned Enterprise (WFOE) or else a Joint Venture (JV) with a Chinese enterprise; for more information on what these terms mean – and other types of business that exist in China, see this page. 

The first step should be confirming the name that you want to use is free; you can then obtaining approval to invest in the food industry from the local Commission of Commerce, as outlined below. Foreign investors must get this approval before they can enter the food business in China. Additionally, if the investment is over 10 million US dollars, the approval application will be escalated automatically by the Commission of Commerce to the provincial foreign investment authority; this will mean your application will take longer to process. 

There is currently no minimum registration capital for setting up restaurants, although there has been minimum amounts set in the past. Do note, however, that if foreign investment makes up less than 25 percent of all registered capital, the enterprise will not be regarded as a JV company, and cannot enjoy the accompanied preferential treatments with regard to tariffs and import and export regulations.

 

Step-by-step guide

1.    First you will need to confirm your business’s chosen name with the authorities. Obtain the Notice of Approval of Enterprise’s Appellation, which is provided by the local Administration Bureau for Industry and Commerce (for addresses for the four first-tier cities, see this page). Check the name you want to use for your business is available by giving it to the office’s staff – they will check to see if it has already been trademarked. The process is free and can be completed on the same day.

2.    Obtain Foreign-funded Food Industry Enterprise Approval from your local Commission of Commerce (see bottom of article for addresses of first-tier cities’ commissions). You will need the following material:

a.    Application form of Founding of Foreign-Funded Catering Enterprise (obtained from the Commission of Commerce office).

b.    Feasibility study report (an overall analysis of the business’s social and economic benefits after setting up) jointly compiled by all investors.

c.    Notarized personal ID documents of investors (if individuals) and/or registration document of the investing company and ID document of the legal representative of the investing company. Photocopies should be provided and all should be notarized by an official notarization organization in China. There are many of these, especially in larger cities. If the foreign investment is from a foreign enterprise, the company should have its registration document authenticated by a Chinese embassy in the relevant foreign county.

d.    If the Chinese party in a Joint Venture is a state-owned enterprise, then an Evaluation Report should have been conducted on any state-owned capital invested in the business, and the validating profile of this report (issued by the Administration of State-owned Assets) must also be supplied. For addresses of first-tier administrations, see bottom of article.

e.    Contract signed by legal representatives of investors, and Articles of Incorporation compiled by the management of the company; these state its registration capital, business range, board arrangement and the basic details of the company. If it is solely funded then the owner need present the Article of Incorporation only.

f.    Name list of board members, and letter of assignment of board directors; solely funded businesses can still have board members who are hired in from outside to participate in management.

g.    The Notice of Approval of Enterprise’s Appellation.

h.    Proof of business site or place of registration.

Time to process: within 90 days after presentation of all required documents. A written approval certificate will be issued. 

3.    Once the restaurant’s decor and physical construction have been finished, obtain a Catering Services License from your local Food and Drug Administration (see bottom of article for addresses of first-tier cities’ administrations). The administration’s staff will give you a time for when your property will be examined by its inspectors, who will examine the overall arrangement of the restaurant, how hygienic it is, the kitchen environment and the installation of sinks and other equi pment. Details can be found here(in Chinese only). 

Time to process: Decision on whether the license can be issued will be made in 20 working days. Another 10 working days needed to manufacture the license. 

4.    Obtain approval from the local Fire Administration (see addresses for first-tier cities at bottom of article). Public places must be inspected for all fire hazards; inspectors from the Fire Administration will visit the premises and check on the quality and repair of fire-fighting equi pment, access to fire exits and any decor that could prove a fire hazard. Workers in the restaurant should also receive fire safety training before the business opens.

Time to process: Inspection will be performed within ten working days of application. Result will be made and delivered in three working days. 

5.    Have an environmental assessment made by the local Environmental Protection Bureau (EPB; see bottom of article for first-tier city addresses). The EPB requires that new restaurants do no harm to the surrounding environment. Fix a time with the staff in the Bureau to get them to visit the restaurant and inspect it; they will look at ventilation and waste disposal. The application form and detailed requirements can be found here (Chinese only). 

Time to process: 20 working days after all materials are handed in. 

6.    Obtain Health Certificates for staff from the Centers for Disease Control and Prevention or a hospital entrusted by the center. All staff working in the catering service industry must undergo health checks to confirm that they do not have contagious diseases, or any disease that the government deems potentially harmful to the public health, such as hepatitis B. A restaurant should have at least one person’s health certificate when registering the business, though it may require more if you have many employees. Health Certificates are effective for one year only. 

7.    After finishing all of the aboe special requirements, you can then follow the usual registration process to register your company. 

8.    Finally, if you intend to sell alcohol then you should apply for a License of Alcoholic Drink Retail; for information on how to do that, see step 8 in this guide to setting up your own bar. This takes about 10 working days.

 

Addresses of offices in first-tier cities

Administration of State-owned Assets

Beijing
State-owned Assets Supervision and Administration Commission of People’s Government of Beijing Municipality, 70 Zaolin Qian Jie, Xicheng district, Beijing 北京西城区枣林前街70号北京市人民政府国有资产监督管理委员会

Contact: 010-8356-0755, 010-83970512, http://www.bjgzw.gov.cn

Working hours: Mon-Fri, 9 am-midday, 1 pm-6 pm.

 

Shanghai
State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government, 100, Dagu lu, Jingan district, Shanghai 上海市静安区大沽路100号上海市国有资产监督管理委员会

Contact: 021-2311-1111, www.shgzw.gov.cn/gzw

Working hours: Mon-Fri, 9 am – 5:30 pm

 

Guangzhou
State-owned Assets Supervision and Administration Commission of Guangzhou Municipal Government 1, Fuqian Lu, Guangzhou 广州市府前路1号广州市人民政府国有资产监督管理委员会

Contact: 020-8312-5610, www.gzgz.gov.cn

Working hours: Mon-Fri, 8:30 am-midday, 2 pm-5:30 pm

 

Shenzhen
Shenzhen Municipal People’s Government State-owned Assets Supervision and Administration Commission, F/9, Touzi Dasha, 4009 Shennan Dadao, Futian Zhongxin district, Shenzhen 深圳市福田中心区深南大道4009号投资大厦9楼深圳市人民政府国有资产监督管理委员会

Contact: 0755-8388-3035, www.szgzw.gov.cn

Working hours: Mon-Fri, 9 am-midday, 2 pm-5:30 pm

 

Centers for Disease Control and Prevention

Beijing
For places in Beijing that issue Health Certificates for workers, please see here. 

 

Shanghai 
For places in Shanghai that issue Health Certificates for workers, please see here.

 

Guangzhou
Municipal Center for Disease Control and Prevention, 1 Jiahe Qide Lu, Baiyun district, Guangzhou 广州市白云区嘉禾启德路1号广州市疾病预防控制中心

Contact: 020-3605-1666

Working hours: Mon-Thu, 8:30 am-11:30 am, 2 pm-3:30 pm, Fri, 8:20 am-11:30 am

 

Shenzhen
For places in Shanghai that issue Health Certificates for workers, please see here. 

 

Commission of Commerce

Beijing
Beijing Municipal Commission of Commerce, Buildings 16-17, Fangxingyuan Sanqu, Fengtai district, Beijing 北京丰台区芳星园三区16、17号楼

Contact: 010-6524-8767, www.bjmbc.gov.cn

Working hours: Mon-Fri, 9am-midday, 1 pm-6 pm

 

Shanghai
Shanghai Municipal Commission of Commerce, Building 7, 300 Shibocun Lu, Shanghai 上海世博村路300号上海市商务委员会

Contact: 021-2311-1111, www.scofcom.gov.cn

Working hours: Mon-Fri, 9am-midday, 1 pm-6 pm

 

Guangzhou
Guangzhou Municipal Commission of Commerce, Room 1301, Guoji Jingmao Dasha, 158 Dongfeng Xi Lu, Guangzhou 广州东风西路158号广州国际经贸大厦1301号广州市商务委员会

Contact: 020-3892-0417, www.gzboftec.gov.cn

Working hours: Mon-Thu, 9 am-midday, 1 pm–5 pm; Fri, 9am-midday, 1 pm-3 pm

 

Shenzhen
Economy, Trade and Information Commission of Shenzhen Municipality, 1-10 East Zone, Administration Service Hall, Civil Center, Fuzhong San Lu, Futian district, Shenzhen 深圳福田区福中三路市民中心行政服务大厅东区1-10窗口

Contact: 0755-8220-7584, www.szjmxxw.gov.cn

Working hours: Mon-Fri, 9 am-midday, 2 pm-6 pm

 

Environmental Protection Bureau 

Beijing
Application should be presented to district Environmental Protection Bureau where the restaurant is located. Please refer to lower part ofthis page for contacts for the Beijing District Environmental Protection Bureaus. 

 

Shanghai
Shanghai Environmental Protection Bureau, Room 301, 1 Nandan Lu, Xuhui district, Shanghai 上海徐汇区南丹路1号301室

Contact: 021-2401-1647, www.sepb.gov.cn

Working hours: Mon-Fri, 9 am-11 am, 1 pm-4:30 pm

 

Guangzhou
Guangzhou Environmental Protection Bureau, 311 Huanshi Zhong Lu, Guangzhou 广州市环市中路311号广州市环保局

Contact: 020-8320-3039, www.gzepb.gov.cn

Working hours: Mon-Thu, 9 am-midday, 1 pm-5 pm, Fri, 9 am-midday, 1 pm-3 pm

 

​Shenzhen
Shenzhen Environmental Protection Bureau, Tudi Fangchan Jiaoyi Dasha, 8007 Hongli Xi Lu, Futian district, Shenzhen 深圳市福田区红荔西路8007号土地房产交易大厦深圳市环保局

Contact: 020-2391-1935, www.szhec.gov.cn

Working hours: Mon-Fri, 9 am-midday, 2 pm-6 pm

Fire Administration 

Beijing, Shanghai, Guangzhou
Go to the fire department of the district where the restaurant is located. 

 

Shenzhen
Please see this page for authorities accepting applications in Shenzhen

. 

Food and Drug Administration 

Beijing
Application should be made to the Food and Drug Administration of the district in which the restaurant is located. For addresses and contacts of each district’s administration, please refer to links at the bottom of the municipal administration page. 

 

Shanghai
Shanghai Municipal Food and Drug Administration, 288 Henan Nan Lu, Huangpu district, Shanghai 上海市黄浦区河南南路288号上海市食品药品监督管理局

Contact: 021-6335-6600, www.shfda.gov.cn

Working hours: Mon-Fri 9 am-11:30 am, 1.30 pm-5:30 pm (from June 15 to September 15, 2 pm-5.30 pm)

 

Guangzhou
Guangzhou Food and Drug Administration, Room 310-311, F/3, Zhengwu Fuwu Zhongxin Bangong Dalou, 61, Huali Lu, Zhujiang Xincheng, Tianhe district, Guangzhou 广州市天河区珠江新城华利路61号广州市政务服务中心办公大楼3楼310、311

Contact: 020-3892-0441/3892-0444, www.gzfda.gov.cn

Working hours: Mon-Thu, 9 am-midday, 1 pm-5 pm, Fri, 9 am-midday, 1 pm-3 pm. 

 

Shenzhen
Food and Drug Administration of Shenzhen Municipality, Gongshang Wujia Dasha, 7010 Shennan Dadao, Futian district, Shenzhen 深圳福田区深南大道7010号工商物价大厦

Contact: 0755-12315, www.szda.gov.cn

Working hours: Mon-Fri, 9 am-midday, 2 pm-5:30 pm

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Photo by Scott Bauer,Source:onestop