How to Do Business in China

China is the fastest growing economy in the world. Establishing a presence in China can enhance any company that wants to do business globally. Business and investing rules in China are fundamentally different than in the Western world. Understanding a few basic practices can provide your enterprise with a winning edge.

Suggestions

1. Begin with the Foreign Trade and Economic Cooperation offices at the provincial, municipality or county level. These offices are designed to assist foreign businesses with every facet of doing business in China. The goal of these offices is to bring foreign investment into their province or municipality and they work diligently to ease the process.
2. Start the process of establishing a Foreign Enterprise by submitting a Preliminary Report to the county-level Foreign Trade and Economic Cooperation Department that identifies where the business will be established. The Department personnel can explain what is needed in the document, but be prepared to explain your business objectives, expected utility and land usages and how you intend to use public facilities.
3.  Follow up with a Formal Document if approved to proceed. This document must be filed with the appropriate Foreign Trade and Economic Cooperation Department. In this detailed document, you must include the identity of your foreign legal representation, credit reports, name registration and reports from various government offices. Good legal representation is essential.
4. Continue the process after the formal application is approved. File an Application for Approval Certificate with the Foreign Trade and Economic Cooperation Department. In addition to this certificate, your business must produce a feasibility study report, articles of association and a list of the board of directors.
5. Register the business within 30 days of receiving the approval certificate. Following that, a business must establish a bank account, register for tax payments and satisfy a list of other requirements.

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