The Process of a Start Up for Foreigners in China

This article will give you the following helpful steps to ensure your business in China as a foreigner doesn’t come back to you with unpleasant surprises and consequences, and instead brings you only entrepreneur success.

Learn from those before you. Don’t be shy about talking to as many other foreign business owners in China as you can since this is who you’ll learn the most from. What worked for them and what didn’t? What obstacles did they run into along the way?

Select a stable area of China to support your business goals. If you’ll be transporting goods or having goods sent to you, think about your location. If having quick and easy access to your businesses’ bank, local stores and the transport of goods is a priority then you’ll want to consider moving inland.

Before registering, consider hiring a local professional to help you determine whether you’ll be registering as a representative office, joint venture or wholly foreign owned enterprise. Whereas a representative office is the most affordable choice, wholly foreign owned enterprises give the owner total control. To determine the right choice for you and your business, make sure to thoroughly research your options, priorities and budget.

Some foreign business owners in China simply ignor hiring a liaison, but you shouldn’t. Any foreigner coming to China to start a business could use the help of a representative, and why not? They will inform you of all licenses and fees, can guide you through the process and speak on your behalf while registering your business. If nothing else they offer a useful support for you as you make your transition into China’s business world.

Protect your item. The number one rule to know about Chinese business affairs is this: whoever trademarks the product first, owns the rights to it and the government takes this very seriously. Make sure to register your trademark early, or you could be hit with hefty fees and the result of your product never leaving the country.

Be choosy in hiring your employees. No one can make or break your business affairs like your employees. Get creative when hiring the Chinese, and consider a human services firm to help you in the process. China is diverse and the cities are cosmopolitan, meaning you can easily find many Americans or Europeans throughout. You may want to look into someone who speaks your language fluently but proceed with caution. Just because they speak the same language as you, doesn’t mean they should be trustworthy from the get go. Like any other aspect of your business, be cautious about who you trust to run your business.