Rules Of Thumb

This China company section was last updated on May 13, 2012

Before you start your business in China:

Know your options!

There are several business structures you can follow when registering a business in China. Unlike Hong Kong, where the Company Registry structure is fairly close to the British (Western) model, (which we are all quite familiar with) - in China, it’s a whole new story.

Although you’ll find familiar words like Joint Venture, Company Limited, etc., keep in mind that China is still in its infant dress when it comes to legal and corporate structure. You will be told different stories but we stick with the facts. And that is, what we want you to get, too, before making a big decision.

On the following pages we will cover the most important aspects, compare company structures, company benefits and obligations and shed light on (even for local Chinese) confusing terms. Need to raise some specific, immediate questions? Contact us anytime.

China Company RULES OF THUMB

China Company Setup - Rules Of Thumb:

If you were about to register your business in Shanghai, but then took the very same business to Wuhan, to Harbin, Xi’an, Guangzhou or any other place, you will find that the fees for establishing your business vary dramatically. That is simply due to the political structure and local government bodies adding local "by-Laws", often times less transparent but more complicated and faster changing, bad enough to follow keep up-to-date with for the local business veterans, even less comprehensible for any outsider and/or newcomer to the China corporate business structure.

Rule 1:
There is no national company registration fee structure effective and thus, calculating costs depend on too many factors. Always consult a Chinabiz21 business registrar first!

Now add to the location differences the many different industries and sub-industries, you are literally up for hundreds of different fee structures, as well but as potential investment benefits.

Rule 2:
Check with your Chinabiz21 business consultant on available local alternatives, you may discover better, more profitable and secure options for your China business venture.

It’s told everywhere and all the time, to do business in China you need good "Guangxi". In fact, it is so big in fashion now that it is used by every "I’m your friend" and "you can trust me" consultant, all promising you the best contacts and "very competitive" costs.

Rule 3:
The more friendly any "good friend consultant" and "best university educated" - the faster you will find yourself lost in the Chinese street markets and - empty pockets, too.


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