Starting a Business in China: Key People and Company Roles

Starting a business in China is not only about paperwork and capital. It’s also about building the right team. Chinese law requires that every company clearly defines important roles — like the legal representative and the financial manager.

In this article, we explain who must be part of your company structure, what each person does, and why choosing the right people is important if you want to start a business with China.

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Starting a Business in China: Workers of a Limited Liability Company (LLC) in China:

Owner (UBO, Shareholder)

You need at least 1 and no more than 50 shareholders. They can be individuals or companies, Chinese or foreign, and must be 18 years or older.

If one person owns 100% of a company in China, they cannot fully own another one — they can only hold part of other companies.

Legal Representative

This is the official person responsible for the company. They sign contracts, speak to government offices, and legally represent the company.They can be Chinese or foreign, and they don’t have to be a shareholder. However, it’s easier if this person is a Chinese citizen living in China.

Usually, the legal representative also works as the general manager and executive director or chairman.

Executive Director / Chairman of the Board

Your company can have either one executive director or a board of directors with a chairman — this is decided in your company’s rules (Articles of Association).This person manages the company for the shareholders. They can also be the legal representative and general manager. There are no rules about nationality.

For foreign investors, it’s better to choose someone who speaks their native language, knows Chinese, and has experience running companies in China.

General Manager

This person runs the daily work of the company. They report to the executive director or chairman.

Supervisor / Chairman of Supervisory Board

This person checks the company’s finances and makes sure the managers do their job. They report problems to the shareholders.

They can be Chinese or foreign. But they cannot be the same person as the investor, legal representative, or any director.

For larger companies, one supervisor may not be enough, so a supervisory board with a chairman is created.

Do These People Need a Salary?

For new companies, you don’t have to pay a salary to the legal representative, executive director/chairman, or general manager. This means you don’t need to give them a visa or work permit if they are foreigners.

Usually, only the general manager and executive director get paid. The supervisor usually does not.

Financial Administrator

This person deals with tax offices and company finances.They don’t need to be an accountant, but they are responsible for taxes. Often, outsourced accounting companies provide someone for this role.

They can be Chinese or foreign, but must live in China. It is better to choose a Chinese citizen, as they need to pass real-name verification using a Chinese ID and phone number.

Minimum Team for a Company in China:

1. Legal Representative (also acts as executive and general manager — not required, but recommended to live in China)

2. Supervisor (does not need to live in China)

3. Financial Administrator (must live in China — can be hired from outside)

There are no rules about education level for any of these people.

Note on Hiring Foreign Staff in China

Chinese companies can usually hire only 1 foreign worker for every 3 local employees. If you go over this number, it may be hard to get visas for foreign workers.

Also, foreign employees must earn more than the local minimum wage — usually much more — to get a work visa.

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Building your company structure in China is not just a legal step — it’s a key part of business success. Whether you’re starting small or planning to grow, choosing the right people and understanding government rules will make your business journey in China much easier and more successful.

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