The FMCG sector is known as the fast-moving consumer goods and it is one of the most important fields of the retail sector in China, with a growth of 5.2% in 2018, compared to 4,7% registered in 2017. The business possibilities are huge in this sector and entrepreneurs from overseas can sell hygiene and cleaning products, toiletry, cosmetics, foodstuff, and other consumables through shops, minimarkets, and other types of stores. The company formation in China is relatively a simple process, however, it is suggested to have the assistance and support of our company formation specialists in China and have an experienced team by your side.
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How do I open a company in the FMGC sector in China?
The WFOE or the Wholly Foreign-Owned Enterprise can represent the ideal business structure for opening a company in the FMGC sector in China, and it addresses to international investors wanting complete ownership in the firm. Some might be interested in joint ventures or representative offices in China, but the WFOE suits many of the business needs of an entrepreneur. Establishing a WFOE in China is not that complex and the following information must be in the attention of any entrepreneur wanting to open a company in respect with the applicable laws:
- RMB 30,000 is the minimum share capital for opening a WFOE in China.
- The registration starts when the company name is verified and valid.
- The Articles of Association are the company’s documents containing information about the owners, the activities, the business address, etc.
- A local representative agent for the company needs to be appointed.
- The registration for tax purposes and the company seal are the next steps before the company activates.
A business plan is normally recommended at the time a FMCG company is created and this should have details about the location of the company. Such businesses are quite successful in urban areas and foreign entrepreneurs should direct the attention to the major cities of China. Our company formation agents in China are at your disposal if you want to start a company in the FMCG sector and need support and details for opening the business and deal with the registration authorities in the country.
The trademark registration for your company in the FMCG sector in China
Intellectual property in China is a serious matter for the authorities that protect your rights through all sorts of laws. In this sense, the trademark of the company needs to be registered before establishing the business in the FMCG sector, in order to avoid any copyright infringements or related issues. The China Trademark Office accepts the logos of your firm as long as they are not offensive, if they are eligible and if they do not infringe with other marks already registered. One should know that our team of consultants is at your disposal if you would like to register your trademark, helped by our local lawyers in China.
Investors from abroad can set up a company in China without complex formalities and in a relatively short time. It begins with the preparation of important documents, such as the Articles of Association. It then moves on to opening a bank account for depositing the minimum share capital, where applicable. It will also be necessary to obtain a business license to be able to start the company’s activities.
Short facts about the FMCG sector in China
The reports for 2018 for China’s FMCG sector revealed the fact that smaller brands met a significant growth compared to the major ones because the customer’s preferences have changed in recent years as the attention for new brands or products develops. Serving to specific client needs in matters of consumable goods is in most cases the successful recipe for small brands found in the FMCG sector in China, mentioning that the market is very permissive. Retailers activating in the FMCG sector in China also have the possibility of expanding the business on the internet if they want to be more visible and align with today’s changes and developments. We have gathered information, facts, and numbers about the FMCG sector in China:
- only 6% of the brand-new products found on the Chinese market brought new clients, statistics for 2018 say;
- the FMCG market in China worth approximately USD 190 billion;
- 78% of the economic growth registered for the first three quarters of 2018 has been sustained by consumer spending;
- according to Nielsen research, the FMCG market grew by 14% in 2018, from 9% registered in the same period in the previous year;
- in terms of consumers, 15% of them are interested in buying basic and non-expensive products.
Investors interested in opening a FMCG company in China are invited to contact our team of company formation representatives in China and find out more about the support offered. Feel free to address your inquiries and solicit a personalized offer for company formation services in China.