Which U.S. State Is More Suitable for Chinese Companies to Register a Company?

Which State in the U.S. Is Most Suitable for Chinese Companies to Register?

As global economic integration accelerates, more and more Chinese companies are expanding overseas. The United States, as one of the world’s largest economies, has naturally become a top destination for Chinese enterprises seeking international growth. However, registering a company in the U.S. is not a simple process, and one of the most critical decisions is choosing the right state for incorporation. Each U.S. state has its own legal environment, tax policies, business climate, and level of friendliness toward foreign companies. For Chinese enterprises, selecting the appropriate state can significantly impact operational efficiency and long-term success.

According to recent data released by the U.S. Department of Commerce, Chinese investment in the U.S. increased by approximately 18% year-on-year in the first half of 2025, with technology, new energy, and manufacturing being the main sectors. This trend reflects a shift from traditional export trade to deeper participation in the U.S. market. As the first step in entering the U.S. market, choosing the right state for company registration is especially important.

1. Delaware A Mature Legal System and a Business-Friendly Environment

Among all U.S. states, Delaware remains a top choice for company registration. Over 60% of publicly traded companies and more than half of the Fortune 500 companies are incorporated in Delaware. Its legal system is highly developed, especially the Delaware General Corporation Law, known for its flexibility and management-friendly orientation. Delaware also has a specialized Court of Chancery that handles corporate disputes, offering experienced judges and predictable legal outcomes.

For Chinese companies aiming to raise capital, go public, or engage in financial activities, Delaware is the ideal choice. Although the state imposes franchise taxes on non-resident businesses, its stable and predictable legal environment helps minimize legal risks.

2. Nevada Strong Tax Advantages and Privacy Protection

Nevada is another popular choice for Chinese companies. The state does not impose corporate or personal income taxes and does not require public disclosure of shareholder information, making it attractive in terms of tax efficiency and privacy protection. According to 2025 data, Nevada continues to see rising company registrations, especially in e-commerce, fintech, and startups.

For Chinese companies looking to expand quickly in the U.S. without yet establishing a physical presence, Nevada offers a low-cost, flexible starting point. The state is open to entrepreneurship and investment, making it particularly suitable for small and medium-sized enterprises or startups.

3. California A Global Technology Hub, Ideal for High-Tech Companies

California is the global center of innovation and home to Silicon Valley, with a dense concentration of high-tech companies, venture capital, and talent. For Chinese technology firms looking to establish RD centers or collaborate with local tech companies, California is an ideal choice.

However, California has high corporate tax rates and a stringent regulatory environment, leading to higher compliance costs. While it remains a top option for well-funded, high-tech companies with strong technical barriers to entry, it may not be suitable for startups or companies seeking low-cost operations.

4. Texas A Strong Business Climate and Manufacturing Hub

Texas has become increasingly popular among Chinese companies in recent years. The state has no corporate income tax, relatively low labor costs, and robust infrastructure, particularly in energy, manufacturing, and logistics. According to the Texas Office of the Governor, more than 20 Chinese companies set up branches or invested in manufacturing facilities in Texas during the first half of 2025.

For Chinese companies in manufacturing, logistics, or energy sectors, Texas provides a solid industrial foundation, favorable regulatory environment, and tax incentives, making it ideal for long-term investment and physical operations.

5. New York A Global Financial Center, Ideal for Cross-Border Financial Services

New York remains a global financial hub with world-class financial infrastructure and a vast capital market. For Chinese companies engaged in cross-border finance, trade financing, or investment services, New York is a strategic location.

However, the state has heavy tax burdens and strict regulations, requiring companies to have strong compliance capabilities.

Conclusion

In summary, each U.S. state offers distinct policies and advantages for company registration. Chinese companies should choose the most suitable location based on their industry, business model, and development strategy. Delaware is ideal for companies focused on capital operations, Nevada suits startups, California is best for tech firms, Texas is suitable for manufacturers, and New York is a natural fit for financial institutions. In an era of increasing global economic uncertainty, selecting a stable, supportive, and strategically aligned state for incorporation will be a crucial step for Chinese companies entering the U.S. market successfully.