Friday 6 April 2018

Things To Remember while Setting up Business in China

There is no denying this fact that China is the fastest growing country that provides you hundreds of new opportunities that help you expand your business to the next level. However, starting up your business venture in China is not as simple as it may sound to you. It takes long preparation and documentation to get the process done in limited time. 


Now China is no longer just the world's factory. It has become one of the world's largest market for the buyers. Whether you want to buy from China or sell to Chinese customer, you are bound to come across distinct cultural differences between the way business is conducted here as compared to other foreign countries. So if you are also planning to set up a business in China, then here are the few things that you need to remember to get success:

1. What Business Structure Should You Choose form Investment In China?

Foreign investors have several choices when it comes to structuring a Chinese enterprise, including the Representative Office(RO), the Wholly Foreign-Owned Enterprise (WFOE Shanghai), The Joint Venture (JV). All the investment vehicles have their own benefits and limitations, so it is advised to choose the one carefully and start your business on right track.

2. Hire Local Agent

Since there is a language barrier in China and other countries and foreign investors are not allowed to take any assistance from the existing Chinese marketers, it is advised to hire the local agent who will guide you all the basic steps for setting up business in China. Not only they will guide you but also assist you getting approvals and license for your business.

3. Pick Right Location For Office

Know where you're going to China. It's a massive country, so choose the location where you can explore good business opportunities. Deciding where to focus in China is critical. For instance, if you are producing for export, consider smaller, newly upgraded port cities with lower costs than Shanghai.

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