For Foreigners Doing Business in China, Choose the Right “Identity” First — The Connection Between Visas, Residence Permits and Business Qualifications

With the continuous deepening of China’s opening up to the outside world, more and more foreign travelers are turning their attention to this market full of opportunities, hoping to come to China to carry out business cooperation and investment and entrepreneurship. However, many people who come for the first time fall into a core misunderstanding: ignoring the compliance of “identity”, confusing the relationship between visas, residence permits and business qualifications, which ultimately leads to obstacles in business activities and even faces compliance risks. In fact, these three are the “identity cornerstones” for foreigners to do business in China, which are interrelated and indispensable. Choosing the right “identity” can make the business path smooth and compliant.

For Foreigners Doing Business in China, Choose the Right “Identity” First — The Connection Between Visas, Residence Permits and Business Qualifications

First of all, it is necessary to clarify a core logic: a visa is an “entry certificate”, a residence permit is a “long-term stay certificate”, and a business qualification is a “legal business certificate”. The three are progressive and mutually bound. Without the compliance support of the previous one, the latter cannot be handled; the lack of any one is “identity non-compliance”, and legal business activities cannot be carried out. Many foreign travelers mistakenly believe that “they can do business with a visa” or “they do not need to apply for a residence permit after registering a company”. These perceptions may lead to serious problems, ranging from being ordered to stop business to being fined and deported within a time limit.

Let’s first look at visas — the “first threshold” for foreigners to do business in China, and the foundation for all subsequent procedures. There are many types of Chinese visas, but not all visas are suitable for business activities. Choosing the right visa type is the first step to compliance. According to the China Consular Service Network and the latest immigration management policies, there are mainly three types of visas suitable for foreigners to do business in China, each corresponding to different business scenarios and cannot be mixed.

The most commonly used is the Z Visa (Work Visa), which is suitable for foreigners who plan to work and operate enterprises in China for a long time, and is also the first choice for most foreigners coming to China to do business. To apply for a Z Visa, the employing or investing enterprise in China must first apply for a Notification Letter of Foreigner’s Work Permit from the local foreigner work management department, which is the core document for applying for a Z Visa. The applicant must also meet the basic requirements of “bachelor’s degree or above + more than 2 years of relevant work experience”, and special high-end talents can enjoy simplified procedures. After entering China with a Z Visa, subsequent procedures must be completed within 30 days, otherwise the visa will become invalid. It should be noted that the Z Visa is only an entry certificate, not a business license, and business activities cannot be carried out with the Z Visa alone.

Second is the M Visa (Business Visa), which is suitable for foreigners who come to China for short-term business activities such as business negotiations, market research, and participation in exhibitions. The stay period is generally 30 to 90 days, which can be extended, but the cumulative stay time is limited. This type of visa is convenient to apply for and does not require obtaining a work permit in advance, but the core restriction is that “long-term business, employment or profit-making activities cannot be engaged in”, such as not being able to establish enterprises in China or carry out long-term sales business. Many foreign travelers choose the M Visa when they first come to investigate, but if they decide to do business for a long time later, they need to replace it with a Z Visa in time to avoid violations.

In addition, the APEC Business Travel Card is also a convenient choice. Foreigners holding this card can enter China without a visa, with a maximum stay of 60 days, which is suitable for people who frequently come to China to carry out business activities. At the same time, the new policy of the National Immigration Administration in 2026 has relaxed the conditions for port visas. Foreigners who urgently need to come to China for business cooperation, investment and entrepreneurship and fail to complete the visa procedures overseas can apply for a port visa from the port visa authority with invitation letters and other materials.

Next is the residence permit — the “legal stay guarantee” for foreigners to do business in China for a long time, and the key to connecting visas and business qualifications. Many foreign travelers mistakenly believe that they can stay for a long time after obtaining a Z Visa, but in fact, the entry validity period of the Z Visa is limited. To do business and live in China for a long time, they must apply for a residence permit from the entry-exit administration agency of the public security organ at or above the county level in the place where they intend to reside within 30 days of entry, which is the “legal identity certificate” for long-term stay in China.

Residence permits are directly related to visas, and different types of visas correspond to different residence permits. The Z Visa corresponds to the “Work-related Residence Permit”, whose validity period is generally consistent with the period of the work permit — up to 5 years for Type A high-end talents, usually 1-2 years for Type B professional talents, and 1 year for Type C general personnel. During the validity period, they can enter and exit China freely without applying for an additional visa. Since the M Visa is a short-term visa, it cannot be directly used to apply for a long-term residence permit. If a long-term stay is needed, it is necessary to first replace it with a Z Visa and then apply for a residence permit. It is worth noting that the 2026 new policy allows foreign nationals in China to apply for visa extension, renewal and replacement nearby. Those who need to stay longer for legitimate and reasonable reasons can handle it conveniently.

When applying for a residence permit, business qualification is one of the core review materials. If a foreigner comes to China to invest and establish an enterprise (such as a Wholly Foreign-Owned Enterprise (WFOE) or a Sino-foreign joint venture), he/she needs to provide business qualification certificates such as the enterprise business license and the foreign investment filing receipt; if he/she works in an enterprise in China, he/she needs to provide materials such as the business license and work permit of the employing enterprise. Without legal business qualifications or employment certificates, it is impossible to obtain a residence permit; on the contrary, if the residence permit expires and is not renewed, business activities will also face compliance risks and may even be suspended.

Finally, business qualification — the “legal employment certificate” for foreigners to do business in China, and the ultimate support for visas and residence permits. Whether foreigners come to China to establish enterprises, carry out individual operations, or engage in business cooperation, they must have corresponding business qualifications, otherwise all activities are illegal operations.

Common business qualifications are mainly divided into two categories: one is enterprise business qualifications. For foreigners to establish enterprises in China, they first need to determine the company type (commonly Wholly Foreign-Owned Enterprises and Sino-foreign joint ventures; individual industrial and commercial households are not allowed temporarily, except in some pilot areas), clarify that the business scope complies with the Special Administrative Measures for Foreign Investment Access (Negative List), then complete enterprise registration, obtain a business license, and go through tax registration, bank account opening and other procedures. Some special industries (such as import and export trade, catering) also need to apply for corresponding industry qualifications. The second is personal employment qualification. If a foreigner works in an enterprise in China, the employing enterprise must apply for a Foreigner’s Work Permit. The individual needs to provide materials such as academic certification, work experience certificate, and no criminal record certificate. Only after obtaining the work permit can he/she legally work and carry out business-related work.

The connection between business qualifications and visas, residence permits is the closest: to apply for a Z Visa (long-term business), it is necessary to have a clear employing enterprise or investment plan, which implies requirements for business qualifications; to apply for a long-term residence permit, it is necessary to provide legal business qualifications or work permits; and the survival of business qualifications also depends on the compliance of visas and residence permits — if a foreigner’s visa or residence permit expires and is not renewed, he/she will not be able to continue to hold business qualifications, and the enterprise’s operation will also be affected. For example, if the validity period of the residence permit of the legal representative of a Wholly Foreign-Owned Enterprise expires and cannot be renewed, the enterprise will not be able to carry out normal business activities and may even be included in the list of abnormal operations.

In summary, for foreigners doing business in China, the core of choosing the right “identity” is to clarify the logical relationship between the three: first choose the right visa according to the business scenario (M Visa for short-term investigation, Z Visa for long-term business), then apply for a residence permit with the visa (legal certificate for long-term stay), and apply for corresponding business qualifications at the same time (core of legal business). The three form a closed loop to ensure that business activities are smooth and compliant.

We remind all foreign travelers coming to China to do business not to ignore the importance of “identity” compliance, and avoid getting into trouble due to confusing the relationship between the three and missing relevant procedures. It is recommended to understand China’s visa policies, residence permit application requirements and business qualification approval procedures in advance, and entrust professional institutions to assist in handling to ensure that each procedure is compliant, lay a solid foundation for doing business in China, and smoothly seize the development opportunities in the Chinese market. At the same time, it is necessary to pay attention to the validity period of various documents, apply for extension 30 days in advance, and timely go through relevant change procedures when changing employers or business scope.

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