The ideal way of doing business in China is by using the services of an Umbrella Company. It is a legal entity that hosts you in China. It will take care of the employees or operations of your business in China. When you incorporate an umbrella company, you have a cost-effective and best way to open a business in China. When you set up your business in China, there are considerations you must make.
If you want to hire local employees for your company, the umbrella company will help you in many ways. You will get assistance in:
Foreign investors in China own the WFOE. It was intended to serve as a way for foreign investors to send commercial activities in China, and it is a limited liability company, so it does not need local partnerships. The kind of service WFOE gives is allowing investors to stay in control of their company and capital management.
Foreign companies may access the Chinese market through these: WFOE (Wholly Foreign-Owned Enterprise), a joint venture, sales office, or a representative office.
When foreign companies want to get the most control of their staff through their legal, HR, and administrative departments, they need the Sales Office. It is appropriate and best solution.
The sales office is a form of local presence that is mostly used since the majority of foreign businesses only require an in-country representative/s to develop the business, brand presentation, or marketing. It is a widespread practice to depend on Chinese partners for importing, exporting, trading, and logistics. At the same time, all financial operations are controlled directly from the abroad headquarters.
A joint-venture is when at least two parties use their resources to achieve an objective. The collective venture creation with a Chinese partner will let foreign investors use their workforce, networks, facilities, channels, and support of their local partner. They can avoid administrative problems, as well as other bureaucratic complexities. They will also have access to specific industries and sectors in China.
If you want your products to reach China and then resell them, the best way is to have an agreement with the manufacturer so that it handles the distribution of your brand merchandise.
A Chinese company’s distribution agreement is the best solution if you are planning to resell your product merchandise in China.
You can use the service of a representative office to carry out specific operations. Even if this kind of activity has a limited scope, choosing this separate legal entity is a simple and low-cost solution if you want to operate in China.
There are industrial sectors in China encouraged by the government for foreign investors, restricted, and industries that are prohibited, so the foreigners do not have access to them.
It is wrong to think that you can do it alone. To successfully open and operate a business in China, you need to find a professional that can speak Chinese fluently and is also competent in the fiscal and legal matters of the company.
Like buying stocks and property, websites have a high value. Sites are being purchased and sold at hefty prices. There are a couple of factors that affect the website’s online value, like its domain name, how much traffic it receives, general popularity, and how much profit the site earns, among other factors. It is a lucrative business, but it needs a deep understanding of the market, but once you know how it works, you could potentially earn a lot of money.
Since there is a vast amount of business activities and transactions in China every day, new businesses commence operations daily. It is not hard to realize how much marketing is needed every day. Direct marketing is a top business opportunity you can have in China. Having an impressive communication skill, business networking skill, and marketing skill makes direct marketing easy and lucrative.
You can contact us to assist you in doing business in China, so the process becomes more comfortable for you.