According to the World Bank Group statistics, China ranks second in the ranking of countries on the planet in terms of foreign direct investment. Suppose you plan to build a business with China. Since you are a foreigner, you must resolve several issues on business registration, accounting, taxation, visa and legal issues, trademarks, and copyright.
Business registration is the first step in doing business with China
WFOE is the most popular approach to starting your business in China. However, you will have to spend a lot of time and money creating it.
To register a new business, draw up a workable business plan and present it to the Administrative District of China. It should contain data on your location, budget, products, expected staff, and projected income.
Then, it would help to start accumulating your cash, as registering your business in China will cost a lot of money. You should fill out all the documents the Chinese government requires. After all, it would help if you found a sponsor in an authorized company. You must register and submit documents directly to the government. In the future, you will work with this organization to register your company’s name.
We want to give you another piece of advice. You can use a free search engine called China Company to verify the Chinese company with which you plan to cooperate.
Accounting and taxation
Once you register your WFOE, you must maintain accounting records by Chinese accounting standards. Also, so that you can know how to do business with China, you need to study the issue of taxation.
We advise you to pay attention to late entries being charged additional fees and penalties. In addition, you should register your tax reporting method with the local tax authority and apply for an official ledger. This book will allow your firm to bill customers across China and abroad.
How to organise business with China: visa service
You will need to obtain a work visa, also known as a Z visa, to live and work in China.
Since September 2013, the Chinese government has imposed restrictions on issuing work visas, making it difficult to obtain a work visa. In addition, you may need appropriate tickets and work permits for foreign employees who will work at WFOE.
Trademark and copyright: how to do business in China
Your trademark registration and copyright protection are required if you want your business to be successful in China.
Given trademark registration, logo, and service marks, you should also pay tax regularly. The corporate identity of your logo is crucial if you are thinking about doing business with China, as well as to protect your trademarks, you must register them.
By applying for a trademark, any enterprise can enjoy the legal protection of its goods and services. So it allows their brands to ensure a sustainable position in the market.
The business you can start in China
After going through all the legal steps, you need to determine the location of your company. We advise you to prefer large cities such as Shanghai, Beijing, and Guangzhou as they are the main economic centers of this state.
You may have to settle in one of these cities, but it will depend on the specifics of your business. However, big cities are only one of many choices, and the fact is that many companies prefer to move to smaller areas with less competition.
Pharmacological goods and services
In the last decade, people have started to pay a lot of attention to their health, so it has opened a big field for the pharmaceutical business.
The Chinese market is famous for a vast range of various medicinal decoctions, ointments, and serums. You can take advantage of this popularity and put on sale products for health and beauty — for example, skin and hair care products, spa treatments, ginger drinks, or tea.
If you have enough knowledge in the field of pharmaceuticals, your food supplements or clinical drugs will come on the market and help you to establish a business in China.
Production of household items
This industry is very developed in China and has long become a profitable type of business. Such goods are in great demand in this country and abroad.
These household products have become popular due to their stylish design and cheapness.
If you want to direct your business to provide services, we advise you to pay attention to teaching foreign languages, especially such as English.
One popular fact is that English is not the official language of China. However, most guests in this country are native English speakers, so this field of activity is significantly developed in China.