Start your Business in just 5 STEPS!
With this quick guide you will gain a first overview about the fundamentals for setting up a business in China. At Tianjin Link, we believe that success is achieved with efficiency and high expertise. Therefore, we summarized everything in just few steps.
1. Your Business in China
China has established a safe and strategic business environment, therefore many companies and investors from different industries have already settled here to profit from its flourishing and growing economy. China offers opportunities for the industries listed below and many more. Whichever is your business vision, we will help you to successfully start your business.
2. Choose a Chinese Company Structure
Wholly Owned Foreign Enterprise
The WFOE is a company owned at 100% by one or more foreign investors. It can be a business oriented towards manufacturing activities, providing services, software development, banking… The activity of the WOFE cannot go beyond the scope that is stipulated on the business licence. The business can be widen but the foreign investor will have to go under further application. Generally the term of a WFOE is comprised between 15 and 30 years but can be extended up to 50 years under certain conditions. The liability of the investor is limited.
The JV is composed of at least 2 partners, at least one of them must be Chinese. The investors will share the expenses, the revenue and the power of decision of the company. Such as the WFOE, the JV has no minimum capital required but has to insure its viability. The capital can also be deposited within several years. Some business activites in China are impossible for a foreigner to invest in. In that case, the JV is the only way for a foreigner to invest in this kind of business such as cosmetics, car production.
Foreign Invested Partnership Enterprise
The FIPE can be made by two foreign investors or one foreign investor and a Chinese investor. There is no minimum capital required. Generally the term of a FIPE is comprised between 15 and 30 years but can be extended up to 50 years under certain conditions.
3. 1 Choose your location
Free Trade Zones
Free trade zones in China are specific geographic areas created to ease the process of landing, storing, and handling re-exporting and similar. In fact these areas aren’t subjected to custom duty; therefore they represent a great opportunity for foreign companies for establishing their business enjoying better conditions.
The first FTZ in China is the one located in Shanghai Free-Trade Zone (Shanghai FTZ) also called Shanghai Pilot Free-Trade Zone. Later on more new Free-Trade Zones opened in Tianjin, Liaoning, Fujian, Chongqing, Guangdong, Henan, Hubei, Shaanxi, Sichuan and Chongqing.
Tianjin City Office
Since its early days, Tianjin has been renowned for being a central hub for international business exchange. Especially its strategic location, has always been beneficial for the development of this area and offers plenty of opportunities for national and international companies. Indeed, only 120 Km separates Tianjin from the Chinese capital Beijing. Thanks to the Haihe, one of the larger rivers in China, crossing along the city from north to south, and its harbor on the Bohai Sea, Tianjin gained the name of “Communications Center of River and Sea”. Therefore many international industries have successfully settled in the “harbor of the North” to profit from its modern, fast growing business environment. Major industries include communications, electronics and the information industry, followed by biomedicine, auto manufacturing, oil and gas, food, manufacturing, finance, insurance, real estate etc. Moreover according to the governmental economical plan Tianjin is expected to flourish among other industrial cities for being the first bridge between east and west China.
3. 2 Choose your type of office
Registered Office Address
When registering a company in China having a valid office address is a compulsory requirement, however some companies may not be in need of a real office, therefore a “registered office address” it’s a convenient solution for avoiding the cost of an actual office.
TianjinLink can provide you a permanent legal address which will be used for the company registration. This option is safe and totally conforms to the Chinese legal norm. A registered office address might be the right choice for your company in order to start your business in China fast and hustle-free.
4. Contact us
Once you have passed through all the steps above, you will be ready to start your business in China. Our team of experts will assist you from the registration procedure on and offer you our best expertise to realize your business vision.