China is one of the world’s emerging business hubs. Not only are exciting start-ups being founded in China on an almost weekly basis, but large companies are catering to Chinese markets. An example of this is the movie industry. China is the world’s largest market, in terms of cinema attendees and movie viewers. Because of this, companies have to tailor their movies to China, so that they can access said market.
With all of the above in mind, it’s not an overstatement to say that starting a company in China is one of the best decisions that you will ever make. This post will tell you how you can do that:
Acquiring Visa
If you want to start a business in China, then you will need to apply for a visa. Acquiring a Chinese visa can be a lot of work, but there are a few ways that you can make the process easier. One of them is by getting a Chinese visa in Hong Kong, rather than from your country of origin. If you are from Europe, Canada, the United Kingdom, or the United States then you don’t need a visa to get into Hong Kong. This means it’s a lot easier to travel to Hong Kong and apply than to apply for a visa from there for Mainland China. If you enter China without a visa, then you face prosecution and eventually deportation, after time in a Chinese prison.
Company Registration
You will also need to register your company in China, which like applying for a visa, can be very challenging for foreigners. The best way to form your company as a legal entity in China is to hire an agency to do it for you. A company formation agency will be able to manage all of the complex paperwork that’s associated with company registration, in addition to being able to give you a fixed address to base your company from. An address is necessary if you intend on operating your company in Mainland China. This is so correspondence and mail can be sent there.
Identity Documents
You will also need to present identity documents to the Chinese authorities (or the company that handles your company’s registration). This is so that the Chinese government can satisfy themselves regarding your identity. You will need to present copies of your passport, birth certificate, and of course your visa. If you do not speak Mandarin, then it’s especially important to use an agency. An agency will be able to translate and officiate all of these documents for you. You will likely also need a copy of your criminal record, which you can apply for back at home.
Bank Account
In order to operate a company in China, you need a Chinese bank account. Opening an account in China isn’t that difficult, as long as you have temporary citizenship or a work permit. When you are opening a bank account, you will need to present all of the same documents previously mentioned, so make sure that you hold onto them. In most cases, you will need to present authentic originals, so copies won’t suffice. You should always send these documents tracked with insurance in case they are lost. The Chinese mail system is very efficient though, so it’s very unlikely that they will be lost.
Business Ideas
By this point, you probably already have a clear idea about what kind of business you are going to start. It’s very important that you know exactly what you are doing so that your business has a clear vision. Some people start businesses without any idea about which direction they are going in. Don’t be one of these people. Business is very competitive in China, so if you do not have a clear idea about where your firm is going, then you won’t last very long, not to mention other businesses won’t collaborate or work with you.
Online Marketing
Marketing in China is no different from marketing in western nations, although the platforms that are used are different from those used in the west. China has its own search engines, social media platforms, and video streaming platforms. In practice, these platforms are exactly the same as western ones, although they can be tricky to master, especially if you don’t speak Mandarin. You might want to hire a marketing agency to manage your company’s online marketing if your Mandarin isn’t perfect. Online marketing will help you to achieve exposure.
China is a great place to start a business, although the nation doesn’t make it easy for foreigners to get started. Armed with this post’s advice, however, starting a business in China should seem a lot less confusing. If you have any issues, you can always hire an agency to act on your behalf.