How to Start an Online Business in China

With the country's overall economy growing at 10.3 percent year-over-year from 2009 to 2010, it's not surprising that you might consider starting an online business in China. The process of doing so can range from simple to exhaustive however, depending on your credentials prior to launching your sales website. In particular, you must make sure you have the proper visa (if you're not a Chinese national) and have legally established your business according to government guidelines before attempting to do business online.

You'll Need:

• "F" business visa
• Chinese business license
• Chinese "Organization Code Certificate"

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Suggestions

1. Visit a visa agency to obtain a Chinese "F" business visa if you have not already done so. According to the Chinese Embassy in the United States, the visa costs $130 for American citizens and is valid for between six months and 24 months from the date of issue as of August 2010 (see Resources). You must visit an agency if you currently reside in China, as individuals may not mail application materials to embassies in their home countries.
2. Register your business with Chinese government authorities if you have yet to do so.
3.  Design your e-commerce website. It's absolutely necessary that the website at least be available in Mandarin, meaning you'll need a translator at the bare minimum. By employing a Chinese web designer outright, however, you can help bridge any cultural barriers that might prevent your business from succeeding.
4. Launch your website and advertise in local publications. If your business is aimed at local Chinese, it's important that you focus the bulk of your advertising budget on Chinese-language publications and websites and, again employ a Chinese advertising professional or agency to help you in this capacity. If, on the other hand, your primary target is expats, you might want to advertise only minimally in Chinese newspapers and magazines and focus instead on English-language publications such as China Daily.

 

 

Some Cautionary Tips

• As of August 2010, foreigners who wish to apply for "F" visas must submit 2-inch-by-2-inch passport photos of themselves in addition to a completed visa application and a passport with at least six-months' validity. Chinese visa agencies will take care of the "Invitation Letter" requirement, although you may incur an additional fee for this service. Ask your agent for specific details.
• According to The Doing Business Project, you must first have your name pre-approved and deposit your business funds into a Chinese bank account. After having an auditing firm verify these funds, you must consult your local authorities for a Chinese business license and obtain their approval to make a "company seal." Obtain an "Organization Code Certificate" from the Quality and Technology Supervision Bureau, then register with the local statistics and tax bureaus. Open an "official" bank account and apply for authorization to print invoices and recruit from local career services centers. Register with the Social Welfare Insurance Center to complete the process. (see Resources)

 

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