The world has shrunk, thanks to cutting-edge digital technology and business owners are looking further afield with their expansion plans, with China being a major draw to the global entrepreneur. The robust Chinese economy is a very attractive marketplace and forecasts suggest long-term growth, which is essential when moving into a new market. Whether you wish to carry out extensive market research or you are ready to trade in China, here are the business registration options available to you.
- Joint Venture Company – This type of business registration is perfect for a foreign company that wishes to partner with a Chinese business. A trading entity that can directly employ local staff and depending on the industry, the entity might have to be 51% owned domestically. The local law firm also offers essential tax compliance services to ensure that your company is always compliant with the complex Chinese business laws. Once you have found a suitable Chinese partner, setting up a Joint Venture Company is very quick and you can be operating within a few weeks.
- 100% Foreign Owned Business – This is suitable for a foreign country that wishes to carry our research & development or extensive market research; you can employ foreign or local staff directly, while also being allowed to import and export. Rather than attempting to submit your registration, you should make contact with a Chinese law firm that specialises in business registration. There are certain sectors where 100% foreign ownership is not permitted; your legal partner can check this for you and if you do need a Chinese partner, they can source the ideal candidate. Click here for information on big data analytics.
- Representative Office – If you have the need to support Chinese companies or would like to conduct initial market research, the Representative Office is perfect. There are some restrictions; you must use a local recruitment agency when hiring local staff, while you are limited to a maximum of 4 foreign employees. You need to have a registered business address in China and with the help of a local law firm, you will make all the right choices. This could be a short-term arrangement until you are ready to become a trading entity, taking things step by step.
Local Legal Assistance
In order to navigate the complex world of commerce in China, you need to enlist the help of a specialist Chinese law firm with English speaking lawyers. Only then can you be sure of 100% compliance and with a local law firm in your corner, you can move ahead with some confidence, knowing that you are making the right choices. The Internet hosts a wealth of information on doing business in China, plus your home government can also advise you.
Paying Taxes
Of course, you must ensure that your tax returns are filed on time and the best way to do that is hire a local law firm with taxation experience and let them deal with everything. The team of taxation specialists can offer you the best advice regarding taxation to ensure that you pay the minimum amount. Making a mistake with business registration can result in over paying tax and that’s the last thing you would want. When you engage the services of a professional tax specialist, the money you save more than pays for the service.
Outsourcing Essential Services
If you are in need of office services such as bookkeeping and accounting, talk to your legal partner, who has working connections and can source whatever you need. General secretarial work, printing and translation are all available and your English-speaking law partner has all the connections that you need to run your business in China.
Ensuring Compliance
One of the most important aspects of setting up a business in a foreign country is compliance with complex laws, rules and regulations. This is one reason to join forces with a local company that provides business registration and taxation services, as they have many years of hands-on experience in setting up and managing foreign businesses in China.
As you would expect, setting up a company in China requires professional assistance and with a Google search, you can be talking to experts who can offer you the best advice and facilitate your business registration application.