Signing an Office Lease in Shanghai: What Foreigners Get Wrong
"If your lease can't be used to register a company, it's not a business office — it's a coworking desk with extra steps."
Registered address vs. operational office
A 'registered address' (注册地址) is what AIC requires to incorporate. A residential apartment, even a serviced one, usually cannot be used. You need commercial-zoned space or a coworking provider that offers a registered address service.
Confirm in writing that the landlord will provide the necessary documentation: property certificate copy, landlord ID, and the right-to-lease declaration.
Deposits, fapiao, and the three-month dance
Standard commercial leases in Shanghai run on '押三付三' — three months deposit, three months rent paid in advance. Negotiating to '押二付一' is common for foreign tenants with a long lease.
Always demand a fapiao (official tax invoice) for every payment. Without it, you cannot deduct rent as a business expense.
The clauses you must add
Insist on a clear early-termination clause, a cap on annual rent increases (typically 5%), and explicit responsibility for major repairs. Verbal promises from the landlord are worth nothing.