For a foreigner to set up his own business as sole owner, the first step is to register a WOFC (wholly own foreign corporation), or find a trusted Local and form a partnership with him owning 51 % and you 49 % of it.

Basically, after # 1 is done, then you get your FEC (foreign expert certificate), and continue at PSB with a work permit and a residence permit.  In fact and in a way, you may never have a work visa, since it is only valid for 30 days to enter the country.  What really allows you to work legally in China is the work permit, and to live here is the residence permit (which takes over and works as a visa.

Basically and briefly, that is about it.

You first wait until the business is legally registered. You will need the business licence and official chops (stamps) and a few other pieces of documentation to precede. Then you have a medical screen at an approved place. You take all the documentation required by the Labor Supervision Bureau to the nearest office along with chops etc. (first best to contact the Labor Supervision Bureau as they have a list of things you need and a printed procedure) to apply for the Alien Workers Licence. At this point, you need to hand over your passport for about a week along with 300 rmb. They issue a green coloured document that you have to take to another government department to obtain a 'z' visa invitation letter (cost about 100 rmb).

Next you take the green Alien Workers Licence and the invitation letter out of the country to apply for a 'z' visa. Please note you should clearly state where you intend to apply for the 'Z' visa as it is printed on the invitation letter. Usually you go to your home country but you can choose consulates or embassies in other regions or countries e.g. Hong Kong.

Once you have obtained your 'z' visa and re-entered China, you have thirty days to obtain a Work Permit/Foreign Expert Certificate and then the Residence Permit. You return to the Labor Supervision Bureau where you got the Alien Workers Licence and apply for the WP/FEC. You will need to pay another 300 rmb. Again you will need to take your passport, company chops and various other documents.

Once you have the WP/FEC, you can start the process of getting a residence permit. This is done at the Public Security Bureau. They will list the documents that you need (which are quite numerous and includes the registration document for you living accommodation, medical screen certificate, business licence etc., and hand over your passport along with 800 rmb. If everything is in order, you should have a RP within five days.

In some areas, companies now also have to install software on which details of the business and personal documentation. This cost me 500 rmb to install.

Note also that you will probably need a Chinese CV/resume for the Alien Workers Licence application at the Labor Supervision Bureau.

Don't do anything..  Just marry a Chinese woman... use her status to obtain a PR card and then do whatever you want... don't worry about all the BS documents.. just have a wad of cash in your hand whenever the police come knockin

Don't do anything..  Just marry a Chinese woman... use her status to obtain a PR card and then do whatever you want... don't worry about all the BS documents.. just have a wad of cash in your hand whenever the police come knockin