How, Which Type, Where?

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

Which China company structure is my best choice?:

That shall solely depend on your requirements!

And, of course, how solid you want to have your foot down in China. What is your future planning for your China business venture? This subject matter will be covered in more detail in the next section when we talk about which "types of companies in China" are available.

Which Company Type, How to choose?

Decide on the Company Type for your China business setup

As a general rule we divide the business community venturing into China into 3 groups;

  • The China Business Scouter
  • The China Business Entrepreneur
  • The China Business Veteran

China Business Venturer Type Explained

As a Business Scouter you basically conduct business in a passive mode. Which means in simple term, you don’t receive any payment(s) within China. You can freely travel China, meet potential business partners, visit factories, even hire local staff (now we are getting seriously hooked up with some labor law), even sign contracts, etc. But, of course, there are limitations to everything. More to in our next session about China company types.

As a Business Entrepreneur, you get tend to get much more serious and also turn active. On that level, your company can now open an international banking account within China but, you are also bound to comply with certain company laws with more obligation and of course local prosecution if in any default. You are also subject to local taxing, etc.

Finally but not least, the Business Veteran. As a veteran, you join the league of the serious industrious Executives. This is for business owners who seek to get into high-end business such as, e.g., manufacturing, local distribution, etc. Such business venture may often require a local partner to join your business.

To sum everything up. From a Business Scouter to the Business veteran, you may have your business established in China within a few weeks, or it may take you months, up to a year and in some cases even longer, depending on how solid ground in China you seek for your business.

How difficult is it to register a company in China?:

Depending on the legal structure of the company you intend to register in China, add a time frame to it - you may be ready to go within a couple of weeks, or it may take several months up to a year. That, however, is just to get the basic bureaucracy for the company registration out of your way

The more acute and wearing challenges roll in right behind, some of them even before. To name but just a few, you will search for adequate answers to:

  • Do you have need for administrative Real Estate, an office?
  • Do you have need for industrial Real Estate for manufacturing, storage, etc.?
  • Do you need to employ local or foreign staff?
  • Do you require any export license(s)?
  • Do you need purchase, employ special equipment, ...?
  • How will you need to have the company financial transactions in place?
  • What about bookkeeping, accounting, legal, translation ...?
  • Do you have needs for more specific, specialized services?
  • And the list goes longer, we all know it.
Stay informed, subscribe to the Chinabiz21 China Business Enzine - always ahead!

What we know little about is the business environment we are rolling into! Many China Business newcomers may have spent a lot of time traveling China and established some good contacts already, but then chances to add blindness to ignorance become even a greater risk. Making friends in China is just too easy.

A good start for everyone would be to grab hold of our "China Business Survival Kit", a must have for everyone doing business in or with China. You can pick up some free kits here and for the more serious one, you can even request more.

Sitting sound in your saddle? Then let’s move onto the next step.


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