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Why Set Up a Company in China?

China is a land of opportunity with a quickly-developing economy and infrastructure. Many of Healy Consultants clients set up a company in China to reap the rewards of business in this emerging market. Although starting a company in China is slightly problematic due to the country's bureaucracy and cumbersome legal framework, our experience in this area is of great value to clients who plan to set up a company in China. The following information will help you make an informed decision on whether to set up a company in China.
1.
Despite the difficulties of starting a company in China, many global investors choose to set up a company in China to tap the huge opportunities offered in one of the world's fastest-growing economies.
2.
China is now the world's leading recipient of foreign direct investments (FDI) among developing countries and is a reason why many foreign investors are starting a company in China. In fact, there are waiting lists to set up a company in China in selected regions.
3.
Although starting a company in China is difficult, recent changes to Chinese company law have simplfied the procedures required to set up a company in China.
4.
Since its accession to the World Trade Organisation (WTO) in 2001, China has made substantial legal and regulatory progress. In short, investors starting a company in China now receive better protection for intellectual property rights. Increasing numbers of investors are being encouraged to set up a company in China.
5.
In 2004 China and Hong Kong signed a Free Trade Agreement, called the Closer Economic Partnership Agreement (CEPA). The agreement has opened the Chinese market to Hong Kong-based businesses, as well as encouraging manufacturers to set up companies in China since Hong Kong services are now available to Chinese manufacturing facilities.
6.
Despite the obvious potential of China, investors planning to set up a company in China should be aware of the many challenges which remain, including:
 
  • Bureaucracy - China is still a developing market and despite the great economic and regulatory strides it has made in recent years, the process to set up a company in China remains complicated and time-consuming.
  • Protection of Intellectual Property Rights - one of our clients' key concerns when they set up a company in China is the protection of their Intellectual Property Rights (IPR). Under the terms of its accession to the WTO in 2001, China is a signatory to the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement. However, concerns remain among those who have set up a company in China or those planning on starting a company in China about the effective enforcement of IPR protection laws in the country.
  • Understanding Chinese business etiquette - many of our clients who have set up a company in China tell us that this is one of the greatest challenges they face. Healy Consultants offers a comprehensive business orientation service to clients who have set up a company in China or who are planning on starting a company in China. These courses include language sessions, tailored chauffeur-driven guided tours and introductory courses on Chinese business etiquette.
7.
Healy Consultants offers a wide range of services for clients who choose to set up a company in China or for those planning on incorporating a company in China. These include but are not limited to:
 
  • Introducing possible joint-venture partners for investors planning on starting a company in China;
  • Market research and feasibility study prior to starting a company in China;
  • Attending to corporate and personal tax registration after starting a company in China;
  • Assistance in finding office space and staff recruitment after starting a company in China;
  • Opening of bank accounts in local and foreign currencies after starting a company in China;
  • Book keeping and audit of accounts; and
  • Virtual office services, including mail collection and forwarding services in China, an e-mail address and website, and a telephone and fax number in China to support investors who set up a company in China.
Contact Us
For more information on how to set up a company in China, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120.

 


Buy the Singapore chapter of Healy Consultants' Asia Business Set Up book for US$100, to order call +65 6735 0120 or e-mail email@healyconsultants.com

 

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