Huizhou company incorporation also refers to Huizhou corporate formation, Huizhou business setup, Huizhou company registration, etc. Huizhou is a city in southeast Guangdong Province, China. Teh city borders Guangzhou to the west, Shaoguan to the north, Heyuan to the northeast, Shanwei to the east, Shenzhen and Dongguan to the southwest, and Daya Bay of the South China Sea to the south. It has about 4.6 million inhabitants and is administered as a prefecture-level city. It is reported that the local government has launched a new work system as it makes efforts to create a better environment for businesses.
Guideline to Business Set-up in Huizhou
More and more international SME are setting up their own presence in China in order to source products/services directly from China or enter the Chinese market. However, given the alien nature of local regulations and business environment in China, it is critical to be proactive and fully prepared before you take the strategic move to set up your own presence in Huizhou.
1. Choose the right corporate structure
When choosing an appropriate investment structure, it is important to remember that strategy must lead structure. This means that foreign investors entering a new market must first decide on their business strategy and then use this strategy to guide them to choose an appropriate investment vehicle that will allow them to carry out their desired commercial objectives.
2. Define the business scope
China National Development and Reform Commission may prohibit, restrict, permit or encourage your business set-up based on your business categorization and scope. Hence it is critical to carefully define your business scope so as to be permitted or encouraged to set up the presence.
3. Select the right location
China abandoned its preferential tax rate for investments of foreign companies from January 1st 2008. However, some areas still offer local preferential policies for foreign investors in terms of land leasing/procurement, staff recruitment and management, local tax etc, such as free trade zones.
4. Confirm the registered capital
The Chinese government requires certain minimum registered capital for various types of businesses. However, local Industry and Commerce Administrations may decide on your minimum registered capital based on their judgement of your business scope and operation scale. You need to confirm with local government agencies the minimum registered capital through local contacts before taking any other actions in case they require an amount far above your financial resources available for your business operation.
5. Understand employers' responsibilities and liabilities in China
Without preliminary knowledge of this law, you may end up spending a huge amount of time and money terminating the contract with under performing employees, as the structure of the contract was wrong. You also need to be aware of the mandatory employee welfare and benefits so as to include such cost in the budget.
Establishing a business in China is not rocket science, but investors that want to save time and money should carefully consider the options and seek local expertise for best results. Tannet’s provides a wide range of corporate services from business setup to company operation and management. Our experienced consultants are glad to help you run a business in China.
Contact Us
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512 or 86-755-82143181 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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