The people’s Republic Of China is undoubtedly a very economically advanced country. If one is able to set their business here and ensure it’s smooth running, they should have a continuous profit chain.
However, when setting up a business in China, most feel this surge of intimidation. China is known for its discipline, judgment, and strict cultural etiquette; sometimes, it can be hard to match up with.
Especially if you are coming from the west, which is comparatively more lenient than the People’s Republic Of China, that being said, it is still possible. All you need is thorough research of everything and the plan to execute.
In this excerpt below, we will be giving you all the proceedings to start a business in China and where to get the right help if you are seeking.
If you wish to set up a business easily, then here are the options you should look into. They will give you a brief idea of how a business looks in China from a foreigner’s perspective.
- Export & Import: This is the most lucrative business idea in China since it helps other local businesses with better opportunities for expansion.
- Health Products: There will always be a high demand for health products in China. Plus, the current situation in the past two years has increased its demands in the country.
- Online Education: The best part about this business idea is one doesn’t have to move to the country itself. Infrastructure costs are also low; one simply needs one or a group of business representatives. China has always been proud of its education system and will welcome innovative forms of new-age education.
- Food Production: Especially if you’re bringing exotic cuisines to the country. Owning a restaurant chain is always a very creative business idea and is much welcomed by the Chinese community. You will have a better chance of gaining a good customer base.
Here is a list of documentation you will need for your business start-up in China. Out of all these, you shouldn’t miss out on any. If needed, you can get help from MbiA. They will assist you through the documentation and approval given below.
- The Administrative Structure: This is your company’s hierarchy and how each job will be implemented and carried forward. These will include your
- Members of the board of directors.
- General managers.
- Country representatives.
- Legal representatives.
- List Of Shareholders: Whether these investors and shareholders are from outside the country or within, you must also submit their official details.
- Articles Of Association: These will include crucial information about the business. This will include the company goal, business description, and mission. The limitations and the strategies one will be using in order to gain profit. In short, the operational structure.
- Official Address: Once you buy or rent a space for your business, office, or warehousing, you have to provide the official address for approval as well.
- Total Investment: The total investment you currently have as your official capital for the business.
- Feasibility Report: This is a comprehensive report of your plan for the business with the capital you have. This has to be impressive and make the delegates understand why your capital is feasible enough to build a good business in the country.
Once you have all the important data and documentation for your business start-up, you must do this afterwards.
You must submit these documents to the Ministry of Commerce (MOFCOM) and the State Administration of Industry and Commerce (SAIC). Once you get that approved, you will have the license to run a business. Furthermore, you will need other licenses if your business deals with certain beverages.
No matter where you set your next business, you must register your business for tax. China is not an exception here. Some of these taxes in China for a business will include.
- Custom duties.
- Corporate income tax.
- VAT (Value Added Tax).
- Corporate Income Tax.
You will need to submit data regarding total capital, employees and their salary, and total revenue. Upon which the percentage of your tax will be determined.