China offers a multitude of business possibilities to any foreign investor interested in making fast profits and developing in an emerging and appealing market. Having a diversified and stable economy and being one of the most powerful countries in the world in matters of economy, production, GDP and many more, China attracts investors in sectors like manufacturing, FMCG, tourism, research and development, automotive, and many more. One can direct the attention to establishing a branch or a subsidiary or small entrepreneurs can open shops of any kind. Those interested in starting a business in China can talk to our company formation agents in China and solicit information.
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What is the proper business form for a shop in China?
The WFOE or the Wholly Foreign-Owned Enterprise in China is in most cases the suitable business structure for any kind of activity. Having simple registration formalities and being directed to international entrepreneurs wanting complete control of their business make WFOE in China the proper business form. Below you can find some important steps in opening a WFOE in China:
- CNY 30,000 is the minimum share capital for opening a WFOE or the limited liability company in China.
- The Chinese Trade Register accepts the Articles of Association with information about the owners, business location, general rules, activities, etc.
- A representative agent needs to be appointed for a WFOE in China (one of our company formation agents can act on behalf of your company in China).
- A feasibility report is needed at the time the WFOE documents are prepared.
- The State Administration of Industry and Commerce in China issued the necessary licenses and permits.
- The registration for VAT and social contributions is mandatory.
Foreign investors might find it difficult to register a company in China, particularly if they do not have a clear image of the Company Law and the Commercial Code in China. This is where one of our company incorporation representatives in China can provide assistance and support throughout the entire company formation procedure in China.
A WFOE for your shop in China
WFOE is in most cases the ideal business structure for small and medium entrepreneurs from abroad who are interested in placing their operations in China, with simple and fast formalities. A shop in China can be the starting point of an entrepreneur who wants to make profits in China and also develop his/her activities in this country. The support of our company formation agents in China will prove essential for businessmen interested in opening a shop in China, as they can benefit from complete support in matters of documents, and registration with the entitled authorities.
Have you planned to set up a company in China? You can collaborate with our local specialists who can help you with the formalities involved. It is recommended to open a local bank account for the financial transactions of the company. Also, the company’s activities can start once the business license is obtained. Therefore, we suggest you contact our local team to get an idea of what incorporating a company entails.
Business sectors for your shop in China
China is a huge market where activities of any kind are found, as long as they respect the laws and are not restricted. One can open an automotive spare parts shop, a small boutique, a tobacco shop, a fast-food corner or a coffee shop. Also, foreigners might be interested in opening small markets with food, beverages, cosmetics, dairy, and any other essential products for sale, or can have newspaper and magazine stands. For jewelry shops in China, it is recommended to observe the legislation regarding the import of luxury goods and see if there are any mandatory requirements.
Making investments in China
China is open to foreign investments of any kind, and international entrepreneurs can discover sectors like manufacturing, engineering, tourism or agriculture as proper profit sources and an excellent environment for fast development. Because the legislation on foreign investments is quite permissive, entrepreneurs find China as a proper business destination even for small or medium companies. The 2019 World Investment Report revealed by UNCTAD states that China is the second-largest investment recipient in the World after USA and the largest in Asia. The following facts and information about China’s economy and investment direction can convince foreign investors to establish their operations in this country:
- according to 2019 Doing Business Report, China ranks 46th out of 190 countries worldwide in terms of the economy;
- around USD 139,043 million was the total FDI inward flow for China last year;
- approximately USD 1,627,000 million was the total FDI stock in China in 2018;
- 871 is the total number of greenfield investments registered in China in 2018.
Foreign investors interested in opening a shop in China can contact our company formation agents in China and ask for support.