Foreigners starting a business in China can enter on an M visa to scout the market, then after registering the company apply for a work permit and a Z visa with a work-type residence permit. Shanghai, Shenzhen and Hainan run pilot "entrepreneur visa" schemes that make it easier.
Company registration steps: choose an address, pick a name, find an agency or lawyer, register with the market regulator, open a bank account, and complete tax registration. Capital requirements vary by industry and city; many cities now allow one-person companies with modest capital.
Tip: contact the local "one-stop service for foreign talent" window or a professional agency first — many cities offer English service. Starting a business takes time: visa, company and tax all come step by step.