Hong Kong permanent residents with Chinese citizenship may set up individually-owned retail stores (excluding franchising operations) in the mainland with a business area of less than 300 sqm and no prior approval from the department in charge of foreign investment is required. They may directly register with the industry and commerce administration in the same manner as ordinary mainland citizens.

Mainland industrial and commercial registration authorities normally have special counters and "green channels" for Hong Kong and Macau residents applying for registration of individually-owned businesses. These special counters offer one-stop services in handling and approving applications whereby successful applicants may have their registration completed on the spot.

Hong Kong residents applying for establishment and registration of individually-owned businesses should submit the following documents:

1. Application form for establishment and registration of individually-owned business (Hong Kong and Macau residents) signed by the applicant.
2. Applicant's personal identity card and identity verification papers.
3. Proof of business venue.
4. Other documents required by the laws and regulations of the state.

If prior approval is required for the name of the individually-owned business or the project, the applicant should apply to the registration authorities for pre-approval of that name before registration. The registration authorities will give pre-approval in accordance with the Regulations on the Administration of Enterprise Name Registration and issue a Notification on the Pre-Approval of the Names of Individually-owned Businesses (Hong Kong and Macau Residents).

The registration authorities will issue a valid Individually-Owned Business Licence to Hong Kong applicants that have been given permission to register. With this licence, they may complete tax registration formalities at the taxation department.