To start a business in China, you must satisfy the regulations of the country. Before starting your business in China, you must check the catalog of encouraged foreign businesses and list of restricted industries. Check whether there are any incentives and special regulations for your business type. When planning to start a business in China, make sure that you select a business scope that is not too broad. Businesses that fall outside their scope tend to be denied permits. The Ministry of Commerce and State Administration of Industry and Commerce must approve your business before you can operate in China.
Minimum registered capital
The minimum registered capital requirement to start a business in China is around 20,000 USD. However, you can start a business with a lesser amount if you are a Chinese individual. The registration capital is used for corporate running, salaries, social insurance, and market promotion. This capital cannot be used for purchasing cosmetic products or making extravagant purchases. All payments made for corporate capital must be for day-to-day transactions. The local tax authority will be monitoring all transactions.
Tax reporting method
If you’re planning to start a business in China, you’ll need to know about the local tax reporting system and what type of taxes you’ll have to pay. The regulations for Chinese businesses are becoming increasingly sophisticated, and you’ll need to know what to expect when you start your business there. China’s tax laws apply to different kinds of investment activities. Here’s a quick guide to tax reporting in China.
Chinese law requires businesses to keep both current and capital accounts. Current accounts are for day-to-day business operations, while capital accounts are for more formal transactions, typically those involving loans from foreign investors. If a foreign business owner plans to raise additional funds from outside investors, they must declare the amount of capital they have initially raised, as well as any shareholder loans. Once they have raised these funds, the owner must apply for a working visa, which can take up to four weeks.
Intellectual property rights
The People’s Republic of China (PRC) is one of the fastest-growing economies in the world, but it is not yet a developed nation. This is because of the Cultural Revolution of 1966, which vilified government officials, intellectuals, and the bourgeoisie. The Central Administration of Industry and Commerce was abolished and its 50,000 registered trademarks were deemed to represent “capitalist values” and subsequently fell into disuse. In addition, tens of thousands of leading scientists were labeled as “bourgeoisie” and sent to labor camps.
Finding a local expansion partner
If you are planning to start a business in China, finding a local expansion partner is vital. In addition to providing local support for your business, partners also help you avoid risks and costs that are associated with international market expansion. These partners can be found through research, connections, and business associates. Read on to discover how to find the right local expansion partner for your business. Listed below are five things to consider when finding a partner in China.