Doing Business in Chengdu

Chengdu contributes significantly to China’s inland economy and has been designated a National Central City. Its strategic location in the Chengdu-Chongqing Economic Circle and designation as a Western Financial Center positions it as a magnet for logistics, fintech, and innovation. (National Bureau of Statistics of China)

High-Tech & Software: Chengdu hosts one of China’s largest clusters of software and IT services companies. The Tianfu Software Park is home to over 2,000 firms, from multinationals like IBM to domestic unicorns. The city’s emphasis on 5G, blockchain, and big data makes it a tech development hub.

Automotive & Aerospace: Chengdu’s manufacturing capabilities include major facilities for FAW-Volkswagen and Chengdu Aircraft Industry Group. The region’s strong engineering talent and R&D ecosystem support next-gen mobility and aviation innovation.

Biomedicine & Health: Chengdu’s Biomedicine Valley is fast becoming a hotspot for pharmaceutical R&D, medical device production, and biotech startups, supported by universities and innovation grants.

Financial Services: As Western China’s financial gateway, Chengdu houses over 400 licensed financial institutions and is pushing forward fintech sandboxes and cross-border RMB innovation trials.

Starting a business in Chengdu involves registering with the Chengdu Administration for Market Regulation (AMR ), acquiring a Unified Social Credit Code (USCC), and completing tax and banking registrations. Foreign enterprises can opt for Wholly Foreign-Owned Enterprises (WFOEs), Joint Ventures (JVs), or Representative Offices. The city supports e-registration for faster processing. Learn more about our Company Registration services.

Businesses in Chengdu must follow China’s accounting standards and regulatory procedures for tax filings, audit compliance, and financial disclosures. Annual reports must be submitted, and local tax offices enforce VAT, income tax, and social security contributions. Our Accounting and Tax services assist in staying fully compliant.

Tax relief and R&D incentives are offered to companies in software, biotech, and green tech. (State Taxation Administration)

Chengdu’s government provides a comprehensive support system including startup grants, subsidized office space, talent recruitment funds, and fast-track permits in innovation zones like Tianfu New Area. The city also benefits from Free Trade Zone (FTZ) policies and partnerships under the Belt and Road Initiative. Our Business Visa and Work Permit services support your entry into this strategic market.

Intellectual Property: IP protection is a top priority in Chengdu, especially for technology, gaming, and biopharmaceutical firms. Trademarks, copyrights, and patents must be registered with the China National Intellectual Property Administration (CNIPA). Chengdu’s IP Protection Center offers fast-track dispute mediation and has introduced blockchain-backed IP verification. We assist with Trademark Registration and offer full support in enforcement actions when needed.

Labor and Employment Laws: Employers in Chengdu are required to comply with China’s Labor Law, including mandatory employment contracts, working hour regulations, minimum wages, and employee insurance contributions. Chengdu authorities strictly monitor payroll compliance, social insurance participation, and workplace safety standards. We draft legally compliant Employment Contracts and assist with workforce-related audits.

Environmental and Cybersecurity Regulations: Chengdu enforces strict environmental regulations for industries operating in manufacturing, chemicals, and construction. Companies must meet waste disposal, emissions, and energy consumption limits governed by the Sichuan Provincial Ecology and Environment Bureau. Additionally, digital firms must comply with China’s Cybersecurity Law and Personal Information Protection Law (PIPL), particularly for data collection, cloud storage, and cross-border transfers. We provide Business Contracts and Compliance Services tailored to these legal environments.

Chengdu’s location within the Chengdu-Chongqing Economic Circle positions it as a major transport and logistics hub in Western China. Key infrastructure includes:

Chengdu is home to over 60 universities, including Sichuan University and UESTC. Its talent pool supports sectors like software engineering, life sciences, and creative industries. Chengdu also ranks among China’s top 3 cities for youth retention and innovation appeal.
Urban development is focused on decentralization, sustainability, and smart infrastructure. Districts like Gaoxin (Hi-Tech) and Qingyang offer incubators, co-working zones, and digital entrepreneurship platforms.

Commercial rents in business zones like Tianfu New Area and Chengdu Hi-Tech Industrial Park remain competitive. Demand is driven by rising tech firms, startups, and foreign offices. Lease flexibility and incentives are available. Our Property Management Services help navigate leasing terms and tenant rights.

Foreign individuals can purchase one residential property if they have worked in Chengdu for over one year. Commercial property investment is unrestricted but requires proper approval from the local real estate bureau. Our Property Acquisition Services simplify transactions, documentation, and compliance.

These companies highlight Chengdu’s dynamic startup ecosystem, where resourceful teams, local policy support, and technical talent create fertile ground for fast growth and regional market leadership.

1. Tophant: Founded in Chengdu in 2017, Tophant is a rapidly growing SaaS startup offering integrated marketing and customer management tools for small businesses and online merchants. Its cloud-based platform enables smart CRM, omni-channel customer communication, and automation features tailored to Chinese SMEs. With VC support and an agile team, Tophant quickly scaled to serve thousands of clients across China’s western and central provinces, showcasing Chengdu’s vibrant environment for lean and scalable B2B tech ventures.

2. Taizhi Capital: A homegrown financial technology startup, Taizhi Capital focuses on AI-driven investment management and financial data analytics. Headquartered in Chengdu’s High-Tech Zone, it leverages AI algorithms and big data to provide customized asset management solutions for institutions and retail investors. Within three years, the company secured key partnerships with regional banks and has become a benchmark fintech solution in Western China’s secondary cities.

3. MedRobotics Tech: This Chengdu-based medtech startup specializes in the development of minimally invasive robotic-assisted surgical devices. Founded by engineers and clinicians from Sichuan University, the company rapidly developed its flagship laparoscopic device, which has gained traction in local hospitals for its affordability and performance. MedRobotics received regulatory clearance within 4 years of founding, proving Chengdu’s potential as a medtech innovation hub combining academic talent and clinical need.

Economic Forecast and Development Projects: Chengdu’s economy is projected to exceed RMB 2.5 trillion by 2027. Major projects include Tianfu Science City, digital trade ports, and AI manufacturing clusters. (Development and Reform Commission)

Challenges and Opportunities: As Chengdu scales up, key challenges include managing urban sprawl and retaining skilled talent. However, the city’s open innovation policies, integration with the Chengdu-Chongqing twin-city plan, and rising investor interest create long-term growth opportunities in logistics, biotech, and smart tech sectors. Contact us to begin your expansion in Chengdu and join the next wave of growth in Western China.