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Over the years some entrepreneurs in China have experienced a kind of divide between their activities in China and their visa status.

Let's say you have travelled to China to set up a new business. You can't be employed by this business on a work permit yet, as you need to work on developing the business and, finally, incorporating it first.

So, how to stay in China legally during this period?

The answer could be an entrepreneur visa if you reach its criteria.

What's an entrepreneur visa?

Since 2018 China has been piloting the entrepreneur visa, or to name it in full the 'Private Residence Permit (entrepreneurship)' or 创业签证 in Shanghai. However, in 2021 this visa is now also available in Shenzhen, too.

The purpose of this visa is to attract and encourage skilled and talented entrepreneurs to set up new businesses with an immigration status that allows them to enter and live in China while legally conducting business setup activities such as market research, finding and leasing office-space, finding customers, hiring staff, and the various clerical tasks required to set up a business (which would likely be a WFOE).

Once the company is established, it's also possible for the entrepreneur to apply for a work permit without needing to be sponsored first since the eventual transfer from entrepreneur visa to work permit connected the company is implied and streamlined.

A work permit will usually require the applicant to be sponsored by an existing company before travelling to China, so if it's a WFOE the business will need to have leased an office, etc, before hiring foreign staff which are costly outlays.

Who can apply?

This visa differs a little from other visas as it doesn't have an age limit (it's usually up to age 60 for most other visas).

Applicants must be:

⇀ Foreigners who have an innovative business plan and intend to invest in the area they're opening it in.

Agreeing to work in a business incubator upon arrival may also be required.

⇀ Foreign students who are currently studying in a Chinese university who have an innovative business plan and intend to stated intention to also work on their business in government-designated science and technology parks, incubators, and maker spaces in specific areas such as Changning and Yangpu in Shanghai.

⇀ Recent high-calibre foreign graduates from top universities in either China or from abroad who have made outstanding achievements in innovation and entrepreneurship in Shanghai (they must have only graduated up to 2 years ago).

How to apply?

The application process is similar to other visa application processes in China such as undergoing a health check, providing a university diploma and passport information as ID, but it also has some unique features.

Some of the requirements may be somewhat subjective, as immigration staff will be looking at your business plan and deciding whether it has merit, for example.Fundamentally, you need to be seen as someone who will contribute to China's economy and has a sound business idea that is likely to become a success.

You will also need to:

⇀ Provide investment certification forms (this would include documents like the capital verification report to show proof of funds), if you are aiming to go down the investment route and start a business in China.

⇀Write an application letter for the visa outlining your business plan and why you wish to start your business in China.

Does this visa suit your needs?

Many readers may be thinking that the investment route to get an entrepreneur visa sounds like a good idea since it's potentially easier and less costly than setting up a company first and later being able to obtain a work permit through it.

If you want to know if you fulfil the criteria to obtain it (at such a time that China more readily allows new visa applications due to Covid-19 restrictions) we can help advise,

so contact us to find out.

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