Before starting a business in China, you need to learn about all the required formalities to create a company and any possible steps that may be useful later. Different solutions to bring you a carefree successful start are possible to all who wish to undertake a business in China. They are as stated below.
1- Outsourcing of all administrative paperwork
Thousands of lengthy paperwork should be expected when you move out off your country to work in China and Chinese policy does not facilitate the entry of foreigner firm in its markets. First, some steps to follow for obtaining a work visa as well as a residence permit through tax returns…
Administrative procedures for foreigner companies, or yet worse for unmanned Chinese market, could be a brake for all business activities in China. Rather annoying, it wastes valuable time instead of focusing on the important points of business.It can take more than two-three days a week.
To avoid wasting time in the different administrative paperwork, consulting firm specializing in the Chinese market is best to help you preparing your business in China. You need to have a company which has years of experiences in the field, and is able to accelerate all required steps in a short time (paperwork, taxes, etc.).
2- To assign the accounts of company to a service provider
For performing the business of accounts, it requires both archives, and expenditure-returned patterns in accordance with the international standards in different countries such as the origins of company, the origin of the financials and its customers. If we carry out a business outside our own country, figuring out the maximization of the profit, reviewing its accounts in order to make analyse before moving to other spending is key.
However, accounting is not only required but essential even for a small or newly created company, managing an accounting during the business trips abroad especially between two countries with two different accounting standards is quite tiring. You could make some mistake into your account. Hire an accountant from your country to manage business account in China is a solution, however, it is thrifty in terms of cost compared to Chinese labour value.
Again, it is recommended to hire a service provider to take care of all about accounting without losing the time if you invest a large sum of money abroad. Many accounting offices are in Beijing, Shanghai and Guangzhou which have many years of experiences with foreigner companies in place or new comers could be found, with very affordable services prices.
3- Hiring the best team members
Pay attention to recruitment in China, it is not difficult to find candidates for the key positions but the only concern that the boss will meet is to find the best profile. Companies planning to set up in china can hire foreigner workers, but there are some positions in the firm according to its business nature are strongly advised to reserve for adequate profiles.
First of all, the culture which Chinese respect more. So, in a business, we have to get a friendly and cost-effective environment. Taking as example the receptionist position in company, hosting Chinese customers is different from the other countries. You should know the languages of business communication, fluent in mandarin or Cantonese depending on the clients. A foreigner who mastered these languages will be an asset to the company because Chinese are grateful to those who interested to their culture.
An important thing to know is a young Chinese does not have the same qualifications as a young European once graduated, therefore it is quite difficult to select between them. Once more, looking for the company which is specialized in recruitment is recommended in order to save time first but at the same time to avoid making mistakes in the selection process. To conclude, as an important investment, hiring the right profile will mean putting together a good and successful team.
4- Opting for co-working space to minimize expenses
To work in our own corner with a healthy environment is more pleasant. In China, renting a big office is not required if you wish to get a comfortable workplace. Buildings are designed especially for offices requiring accessible. They can be found in all cities in China, down town or in periphery, with all kinds of designs (Modern and traditional).
To get our office, no need for annoying steps, you just have to sign the lease and some minutes after you can take your office with all the necessary office supplies inside. Electricity’s bills, water, connection to internet… These are taken of by the Umbrella company for you.
Having an individual office would be ideal when a businessman wants to move in China, however, it turns out to be costly in term of time and budget. Since the past decade, the real estate did not stop growing so the desktop sharing system becomes a trend in the country and it is much more effective. Office rental cost and expense are significantly reduced but the conditions are the same as mentioned above. Entrust to a competent company to take good care of your business location on your choice and fit with your dealing.
5- Getting standard contracts
To avoid some possible misunderstandings while signing a standardized contract when you are trying to engage in a commercial activity in China, for these first steps, you have to be careful to understand it well, and you have the choice between three types of contracts:
• Length contract determined
• Length contract undetermined
• Employment contract expiring once the mission is achieved.
Developing contract with customers is important; however, when you have difficulties to know the real laws that govern the businesses in China, asking for business advices is beneficial.
Once these steps are respected, implementing activities in China becomes easier. But do not take risks if you are new in the market, we have specialists to assist you in your efforts until your business takes off, especially when your project engages a huge start-up fund. Trusting our services and your success is our goal