China - 中国

Consider a Global Expansion Partner

• We will help you start your business in China with help from a local Professional Employment Organization (PEO)/Employer of Record (EOR), you can start operating in days.

Choose a Legal Structure

Consider the most popular varieties below

 Wholly Foreign-Owned Enterprise (WFOE) 

A Wholly Foreign-Owned Enterprise (WFOE) is a business established by foreign parties without direct involvement from a Chinese investor: It is the most common type of ‘Foreign Invested Enterprise‘ (‘FIE’) in China.

A company is considered an FIE if 25% to 100% of it is controlled by foreign investors. As the name suggests, WFOEs are 100% foreign-owned. WFOEs come in different types, the most popular of which are Limited Liability Companies (LLCs).

The process involved in the filing, registration and eventual approval of WFOEs is complex and necessitates collaboration with the following Chinese governmental bodies:

• Various local authorities;

• State Administration for Industry and Commerce (SAIC);

• National Development and Reform Commission (NDRC); and,

• Ministry of Commerce (MOC).

The process and procedures for registration and approval could take a couple of months to complete.

Joint Venture (JV)

Given that foreigners have Chinese partners in JVs, the there are fewer restrictions, and certain industries which are not open to foreigners may become a viable option. Moreover, given that a local partner also owns the business, they can serve as a huge help in forming and running the business. We have a list of personel that would be interested in creating and/or establishing a joint venture with you! There is still the risk of loss of the brand, or exposure or copying of trade secrets by the Chinese counterpart but we will work the eliviate this from happening. 

Representative Office (RO)

Representative Office (RO), also called a Liaison Office, serves as a separate legal entity which represents an existing foreign company in China, referred to as Hongda

ROs are prohibited from performing such operations as:

• Import and export;

• Accepting payments;

• Issuing Fapiao (legal receipt or official invoice in China that serves as proof of purchase for goods and services);

• Executing contracts;

• Doing business or trading with other companies;

• Manufacturing of products.

The following are the activities ROs can do, which are beneficial to the foreign counterpart:

• Research and study the market;

• Promote the foreign company;

• Engage in such activities which will not generate profit;

• Serve as the foreign company’s marketing arm in China;

• Serve as customer support;

• Develop advertisements;

• Gather information useful to the company;

• Rent residential and commercial properties; and,

• Create a network of contacts.

Professional Employment Organization (PEO) PEOs are fully licensed entities and are certified in China to perform various legal, HR, administrative, and fiscal requirements which includes, among others, the following:

• Recruitment

• Employee benefits services

• Worker’s compensation administration

• Tax compliance

• Payroll outsourcing & processing solutions

• Visa facilitation

• Expense management

• Health insurance administration

A PEO offers any foreign company with intentions to expand globally with the convenience of turning into its subsidiary in China, instead of having to go through the rigorous process and legal challenges of forming a legal entity in China.

SO business distinctions  

1 -2 months to set up

Registration cost of $10,000 

registered capital on monthly basis - $0

acceptance of payments can only be outsourced

WFOE/JV/RO business distinctions

8 - 22 months to set up

Registration cost of $50,000 

registered capital on monthly basis - $45,000usd

acceptance of payments can be outsourced or in-house

Declaring a capital amount of at least 1,000,000 RMB can:

• Help streamline the business registration process

• Open up governmental benefits, like temporary residence sponsorships and increased foreign employee allotments

• Cover initial operating costs, like salaries, rental fees, resource purchases, etc.

• Assist with the solidification of your legal structure

Declaring this amount does not mean that you have to pay it into the company all at once. Rather, this is a statement of the amount of funds that is planned to be generated by the WFOE within a fixed period of 29 years. That capital will then be used to pay for expenses like office rental, salaries, and equipment costs, for example.

Before starting a business in China with official incorporation, you’ll want to review all of the available legal structures with a lawyer to determine which best fits your needs. It is also a good idea to hire an accounting agency with China-specific expertise. Financial compliance during the company incorporation process is critical, and an accountant can help you each step of the way. Throughout the process of choosing your legal structure, it may also make sense to partner with a consultant to see whether you should register minimum capital—and how much to register.

Create Your Business Plan

• Business description

• Business location

• Projected revenue

• Expected number of employees

• Budget requirements

other things to include

• How do you plan to market to the Chinese buyer – what market research will you use on your behalf to help you determine effective marketing strategies.

• Make long-term partnerships – Focus on strategic and effective long-term partnerships. Show your commitment to the Chinese economy. Your choice of partner could also have an impact on your social credit score in china! We got you!

• Form good relationships with government agencies – Getting on the wrong side of the government can cause your business to be banned and erode your relationship. A local expansion partner with solid relationships with local agencies can help you remain compliant at all times. We can help with this. 

• Have a local expert on your team – Engage a local partner like who can guide you through the logistical and cultural challenges ahead.

Open a Bank Account

When going to set up your bank account, you can expect to provide:

• Business registration proof, such as a valid business license, enterprise code certificate, tax registration certificate, or articles of association

• A list of directors’ names

• A company chop (a seal or stamp)

• Valid ID for legal representatives of the company (responsible officers, directors, and principal shareholders)

• Company structure and ownership details

• Recorded state approval for your business venture

opular bank choices include Hang Seng Bank, ICBC, Bank of China. You can even choose a bank that’s familiar to you. Many foreign banks have a Chinese presence. For example, companies like HSBC, Citibank, Standard Chartered, and Bank of America

Turn In Any Remaining Paperwork

A consulting team will be particularly useful throughout this final step. They can help you determine:

• Which local applications you might have missed

• What you need for final approval from government officials

• When you can estimate paperwork completion

Chinese business culture:

Chinese business culture has evolved over centuries and is heavily influenced by Confucianism, Taoism, and Buddhism. It is characterized by a hierarchical structure, collectivism, respect for authority, and an emphasis on building relationships or guanxi. The following are some key aspects of Chinese business culture:

1. Relationships: Building and maintaining relationships is crucial in Chinese business culture. Networking and establishing strong relationships based on trust and mutual respect are essential for success.

2. Face: "Face" is a concept that is deeply ingrained in Chinese culture and refers to a person's reputation, dignity, and prestige. In business, losing face can be detrimental to one's reputation, so it is important to avoid public criticism or confrontation.

3. Hierarchy: Chinese businesses tend to be hierarchical, with clear lines of authority and respect for authority figures. The most senior person in the company is expected to make the final decisions.

4. Patience: Chinese business culture values patience and a long-term perspective. Business deals can take time to negotiate and require a lot of relationship-building and trust-building.

5. Gift-giving: Gift-giving is a common practice in Chinese business culture, and it is seen as a way to build relationships and show respect. However, there are strict rules around gift-giving, and it should be done in a culturally appropriate way.

6. Saving face: Chinese business culture values saving face, which means avoiding confrontation or criticism in public. This can sometimes make communication indirect or ambiguous, as people try to avoid giving offense.

7. Negotiation: Negotiation is an important aspect of Chinese business culture, and it often involves a lot of back-and-forth discussion. Chinese negotiators tend to be patient, respectful, and skilled at finding a mutually beneficial solution.

Overall, Chinese business culture places a high value on relationships, hierarchy, respect, and patience. Understanding and respecting these cultural norms is crucial for success in the Chinese market.

中国商业文化已经发展了几个世纪，深受儒家思想、道家思想和佛教影响。其特点是等级结构、集体主义、尊重权威以及建立关系或关系网的重视。以下是中国商业文化的一些关键方面：

关系：在中国商业文化中，建立和维护关系至关重要。网络和建立基于信任和相互尊重的强大关系对于成功至关重要。

面子： “面子”是一个在中国文化中深深根植的概念，指一个人的声誉、尊严和威望。在商业中，失面子可能会对一个人的声誉造成损害，因此重要的是避免公开批评或对抗。

等级制度：中国企业往往具有明确的权威和尊重权威人物的等级制度。公司中最资深的人被期望做出最终决策。

耐心：中国商业文化重视耐心和长期眼光。商业交易需要时间进行协商，并需要大量的关系建立和信任建立。

送礼：送礼在中国商业文化中是一种常见的做法，被视为建立关系和显示尊重的方式。然而，送礼有严格的规定，并且应该以符合文化的方式进行。

保面子：中国商业文化重视保面子，这意味着避免公开对抗或批评。这有时会使沟通变得间接或含糊不清，因为人们试图避免冒犯。

谈判：谈判是中国商业文化的重要方面，通常涉及大量的讨论和协商。中国的谈判者往往耐心、尊重，并善于找到互惠互利的解决方案。

总的来说，中国商业文化非常重视关系、等级、尊重和耐心。了解和尊重这些文化规范对于在中国市场取得成功至关重要。

Keywords:

1. 台湾文化 (Taiwanese culture)

2. 台湾经济 (Taiwanese economy)

3. 台湾旅游 (Taiwanese tourism)

4. 台湾贸易 (Taiwanese trade)

5. 台湾投资 (Taiwanese investment)

6. 台湾与墨西哥 (Taiwan and Mexico)

7. 中美洲商务 (Central American business)

8. 中美洲市场 (Central American market)

9. 台湾出口 (Taiwanese exports)

10. 台湾品牌 (Taiwanese brands)

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