China business setup attracts more and more attention recently, as China's fast-growing economy development and favorable policies keep lifting. Business setup in China requires financial and time commitments, business management knowledge and China expertise. Therefore, identifying a competent agent to manage the complex process will be a cost and time effective way to avoid potential pitfalls. Below are some of the necessary items that you need to think about when setting up a business in China.
I. Choosing a form of Business
When you decide to set up a business, you need to choose a form of organization. The form you choose does not have to be permanent. Once the circumstance of your business change, you can always change the form. Normally, there are forms: Sole Proprietorship, Partnership, Limited Liability Company, Limited Liability Partnership and Corporations. You can choose one form according to the actual situation.
II. Naming Your Business
When selecting a name for your business, try to make it short, easy to remember, descriptive of the business and capable of drawing attention. Be sure to rule out those that have negative attributes or that are very similar to names of existing businesses. Once you decide on the name, you may have to register and/or receive approval from the local or state government that your business is formed in.
Also, the type of business organization must be included in the name. Generally, choosing a name for a limited partnership, corporation, or limited liability company involves more formalities.
III. Getting Licenses and Permits
Most state and local government require businesses operating in their area to obtain licenses or permits. State and local government regulate the safety, structure and appearance of the community through the use of local laws, called ordinances. Zoning ordinances, which regulate how property can be used , are a common type of ordinance. Once the jurisdiction determines that you have complied with such ordinances, it will issue a permit that will enable you to operate your business.
IV. Protecting Your Ideas
Protecting your ideas means protecting your intellectual property right. Patent, trademark, copyright and trade secrets are collectively known as intellectual property and generally refer to the rights associated with intangible knowledge or concepts. Intellectual property may be a concern if your business is developing (or has developed) a product, process, or a concept that you are going to market, or has developed any special information that you want to keep away from your competitors.
V. Hiring Professionals
Once you’ve finish the company registration, you may begin to recruit employees to enlarge your human resources. The general rule for determining whether you should hire professionals is if (1) they have expertise you need but personally lack or (2) you have the expertise, but they can do what they do cheaper than you can do it. Be careful about using relatives or close friends as professional advisers. This doesn’t mean that you shouldn’t hire a relative or friend; it just means that you should be careful.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu, Shenzhen, China.
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