According to the newest policy issued by the Shanghai Science and Technology Commission, March 1, 2021, if foreigner establishes a company in Shanghai and applies for the first work permit as foreign investor, the validity of the first work permit will be shortened from 1 year to 6 months. Limits in terms of age, academic degree or work experience will be relaxed, when they apply for their first work permit in China.

Moreover, when such foreign investors want to extend the work permit and residence permit, the governmental authority will check whether or not the company meets the following requirements. Normally renewal application will only be approved when all the requirements are satisfied.

- The company is in normal operating status and has a physical office

- The enterprise is with a Chinese employee whose social insurance has been paid by the enterprise for 6 months consecutively

- The enterprise issues no lower than RMB 90,000 of VAT Fapiao (invoices) per quarter.

This means the Chinese government welcomes real investors and encourages foreign investors to be responsible for their companies, rather than keeping their companies merely for applying visa. If your company only has a virtual address instead of a physical address, or you just work at home, your work permit and visa renewal application may be influenced.