China is known as the land of opportunities.
Being the world’s second largest economy, China has made a name for itself in the global market. With a GDP growth rate averaging
10 percent every year, it’s not surprising that foreign investors are shifting their focus on one of the 4 Asian Tigers!
Apart from being rich in factors of production, China boasts long-term investment benefits for every type of industry. However, it goes without saying that setting up a business isn’t easy. It takes dedication and immense effort.
But it’s not impossible either.
If you’re planning to set up your own business in China, take these tips into consideration:
Do Your Homework
The good news is: you’re not the first foreigner to invest in China. So there’s a lot to learn from.
Just like any other country and economy, it’s important to do your research. Don’t just search for answers online. Travel to China, attend trade shows, build connections and interview successful entrepreneurs.
Remember that there’s no such thing as too much research. The Government of China specifically publishes
5-year plans for businesses. Make sure to look into it to get an idea of all the regulations. This plan elaborates on the types of businesses the Chinese government is looking for.
This is essential because the government is tightly associated with businesses in the country.
Pick a Location
So you have an entire country at your disposal. But that’s not how businesses work. Unless you own a multinational, you need to start with one city. Whether it’s Guangzhou or Hong Kong, you need to first ask yourself these questions:
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What type of logistics do you need?
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What type of business are you setting up?
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Will the goods you use be imported to China?
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How will you transfer stock from the port to your location?
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What type of limitations will you face with government laws?
Once you’ve settled this, it’s time to look for an office for lease. You will need to lease property depending on the size of your staff and business, as well as whether the location is centralized or not. Or you can try a registered address without the hassle of renting an office in China physically.
Choose an Entity Status
Before you decide to set up a business in China, you need to figure out what type of entity status you’re going for. The most common is the joint venture and Wholly Foreign-Owned Enterprises.
In order to set up a joint venture, you need to partner with a Chinese domestic company.
This is where we come in.
We
help you maneuver the Chinese Accounting Standards, accounting and other services, such as company registration in China.
For WFOE, you need permission from the government and capital investment that you can transfer to a Chinese bank. We take care of all of such matters for you so you can set up your business hassle-free.
These are just a few important tips to keep in mind when setting up your business.
Feel free to
GET IN TOUCH WITH US to learn more!
