Getting Familiar With Some Basic Aspects Of Starting A Business In China

When it comes to setting up or investing in a business in China, most foreign entrepreneurs are still not sure about the right procedure to be followed. This is despite the fact that the Chinese government has taken several steps in the direction of protecting the investments of foreign partners along with their profits and legal rights. There are three primary options for the overseas entrepreneurs to do business in China. These include, setting up a wholly foreign-owned enterprise, investing in a joint equity venture and investing in a corporate venture. For entrepreneurs choosing the first option, it is essential to become familiar with the relevant operating requirements for their venture. This can be ensured by seeking the services of professionals offering the services of board advisory in China.

SAIC – The First Stop For Overseas Entrepreneurs

SAIC or the State Administration of Industry and Commerce, is considered by many as the best ally in China for foreign entrepreneurs opting to set up a venture on their own. This is mainly because the SAIC website offers English translation of laws related to various aspects of running a business in China. These laws may be related to advertising, consumer protection and business incorporation. The awareness of these laws makes it easier for the overseas entrepreneurs to communicate their precise needs to Chinese professionals. SAIC is also the place where the entrepreneurs can get their business license. The pre-requisites for the same are listed below.

·         Pre-approval of the business name

·         A China based bank account having the minimal capital deposit

·         A verification report prepared by a Chinese auditing firm

Other Registrations Required

In addition to the above pre-requisites, the overseas entrepreneurs need to register the venture with the local statistics bureau, police station and taxation authority. It is also mandated for the foreign venture to get registered with the local career service centres and welfare centres. This is a necessary step without which the business cannot hire local Chinese professional in a legal manner. Given that the Chinese labour laws are extremely stringent and their violation might lead the investors to lose all their assets within the country, it is highly advisable for the entrepreneurs to adhere strictly to the applicable procedure and laws.

Seeking The Help Of Advisory Service Providers

Given the considerable difference in the manner in the business and labour laws of China and other countries across the globe, many foreign investors find the business establishment procedures somewhat tricky. That is why seeking the help and guidance of board and CEO advisory in China is a preferred option. These professionals are well versed in the various local laws and their application for the different business setups making it easier for the overseas entrepreneurs to establish a successful venture within the country. They also offer additional advice with respect to running the business efficiently.