I think HappyExPat and Kaiwen would be the best people to answer this question.

Keep in mind that -- if I recall correctly -- the Chinese partner must own 51% of the company, so if they decide to screw you in any way, they pretty much win. They can take everything from you, fire you, etc.

It's better to do it with a spouse, or someone you completely trust...

I would be very careful if they have asked you to put up a lot of the start-up capital.

I think Hulk's advice is the best here... if your partner does decide to screw you over, do you really think the Chinese courts will decide in your favour? If so, I have a few emails from Nigeria I'd like you to look over...

If you do decide to go with it, have your partner put in the money, and send regular large amounts  home/somewhere it can't be touched. In short: exit plan (of course, this is difficult if you have a Chinese spouse/family).

4 word:

DO NOT DO IT

you got invited to open a company? what the..?

you dont know what are you gonna do / what company you open? what the...?

dont be naive, sorry to sound rude

In Chinese business there is an expression, something like "It's a win-win situation", this means that the Chinese partner wins twice and you're out. 

It is not adviseable to do business in China any more. You are not allowed to check even the identities of those you intend to do business with. You are also not allowed to check their assets or credit ratings.

Additionally, Your partner owns the controlling share, and can shaft you in any way he wants any time he wants. Basically, you put in high investments in money and knowledge, and expect little or no returns.

I do not know if you'll be entitled to a working permit and a resident permit if you start your own company. That is something HappyExPat / Kaiwen / Xpat.John would have to answer.

It's already been answered but I must reiterate, if they ask you to put start up funding, then no.

OK, firstly entering into this type of business arrangement is fraught with danger. Even the closest of friends can become the biggest of enemies when they become business partners. That indeed holds true in western society but the effects can often be massively amplified within the Asian business arena. Secondly, you appear to have no kind of business plan in place whatsoever. It appears that doing business sounds good to you but you have conducted nothing in terms of a risk assessment plan let alone understanding what contingencies you need to have in place should things turn against you. Strong business plans are essential regardless of where you set up a company. You need to do cash flow forecasts and fully understand how your business will deal with periods of negative income. Simply put, unless you have a strong five year business plan in China, your company is doomed to failure.Thirdly, it is impossible to state precisely what start up capital you will need. The bare minimum registered capital that you and your partner will have to put up is 100,000 rmb or equivalent in a recognized foreign currency. That amount will increase according to the type of business you are undertaking e.g. the the type of commodity you are trading and your market. Some commodities require special export licences which will increase your business running costs. Another large factor will be the business scope of operation. If you intend being genuine traders (that is to say buying commodities and then selling at a profit) you will have to buy some stock and insure it. The registered capital will be set to account of such business expenses. However, if you intend to be an agency (selling commodities on behalf of another organization and then get paid commission), there will be no stock to handle so you may get away with the minimum registered capital. The RC will also depend on other factors such as rental of office space, number of staff and location etc. Fourthly, I know nothing of this requirement for the Chinese partner to hold at least a 51% equity share. It certainly doesn't apply in the city where my business is based. What I do know is that every Chinese company has a nominated legal representative 法定代表人. This is not a lawyer. It means a person nominated within the company who holds responsibility for dealing with the company legal matters and whose name appears on the business licence. The same person also has responsibility for managing the company chops (stamps) and the company financial affairs. It doesn't matter if the Chinese partner has 10% of the equity and you the other 90%, the government will push hard for the Chinese partner to become the legal representative. That will automatically rant them power in the business over and above what you have and also automatically grant them the balance of power with regards to business decision making. Be very careful and aware of this - the nomination of the legal representative is a critical aspect of setting up a business in China. Finally, with respect to the work permit, 'z' visa and residence permit. This again is a moot point. The Chinese government have really tightened the screws on work permits for foreigners in companies. In some locations, unless the registered capital of the company is at or above a certain locally set amount (where I am, it is a minimum of 100,000 USD), then only foreigners that are legal representatives of the company will be granted a work permit. That is to say, if your company has registered capital of at least 100,000 USD and YOU ARE NOT the legal representative, you may not be granted the rights to a work permit. This is one of those things in China that involves a degree of local discretion and will vary from province to province. That is something you would need to take up with the local government where you establish the company.

why you have got invited to establish an company. you can set up the WOFE by yourself which held 100% share .

I am interested,PM me.

I also advise you dont do it, you have to be very sure that you know and trust your partner. Chinese will do everything to get your money, no rules no ethics and the way of protecting yourself is very limited unless you have a lot guanxi. Just an advise be very careful !!

As Sorrel said, look at the date of the original post.

The poster probably gave up,or was ripped off and bankrupted long ago. Maybe it even worked out, stranger things have happened.

Either way, I doubt he or she cares much about listening to advice now.

lol ig u want to lose your investment this is the place to come

Cheers! Be serious with investment in China. It's not even easy for a Chinese to do so. But if you like, you can start with a small Taobao business, safer.