<![CDATA[Comments on: Starting a Company in China]]> 2009-12-15 18:00:00 <![CDATA[By: jgwilson]]> All the niches have already been filled up, it is hard to start a business now.

]]> All the niches have already been filled up, it is hard to start a business now.

]]> <![CDATA[By: pretzellogic]]> well, looking at the business environment from the 80,000 foot level, it's hard to start a business that's doing something really unique, especially in retail.  But of course, I realize that you're not saying that it can't be done.

Is this lesson really how the process works in China? How much is this is Shanghai, and how much is China-wide? How much does it cost to establish a firm, given the need for these licenses and so on?  I'm not even talking about the actual office and hiring workers, just the legalities of setting it up?

In the States, there are 3 basically types of going concerns, sole proprietorship, partnership, and a corporation.  Is it the same in China?

]]> well, looking at the business environment from the 80,000 foot level, it's hard to start a business that's doing something really unique, especially in retail.  But of course, I realize that you're not saying that it can't be done.

Is this lesson really how the process works in China? How much is this is Shanghai, and how much is China-wide? How much does it cost to establish a firm, given the need for these licenses and so on?  I'm not even talking about the actual office and hiring workers, just the legalities of setting it up?

In the States, there are 3 basically types of going concerns, sole proprietorship, partnership, and a corporation.  Is it the same in China?

]]> <![CDATA[By: John]]> pretzellogic,

Yes, this is a basic overview of how the process works in China, although we didn't go into the details of how it works differently for foreigners.  Let me refer you to this excellent (and up-to-date) blog post: How To Start A Business In China -- WFOE. (I think I got this wrong in the podcast... WFOE = Wholly Foreign-Owned Entity.)

For foreigners, there are four options to starting a business in China: Wholly Foreign Owned Entity (WFOE), Representative Office, Joint Venture, and Hong Kong company [source].

Please don't use this information as a basis for your business plans, but this lesson will definitely help you get started with the necessary vocabulary.  A bit of Googling will turn up a wealth of information.

]]> pretzellogic,

Yes, this is a basic overview of how the process works in China, although we didn't go into the details of how it works differently for foreigners.  Let me refer you to this excellent (and up-to-date) blog post: How To Start A Business In China -- WFOE. (I think I got this wrong in the podcast... WFOE = Wholly Foreign-Owned Entity.)

For foreigners, there are four options to starting a business in China: Wholly Foreign Owned Entity (WFOE), Representative Office, Joint Venture, and Hong Kong company [source].

Please don't use this information as a basis for your business plans, but this lesson will definitely help you get started with the necessary vocabulary.  A bit of Googling will turn up a wealth of information.

]]> <![CDATA[By: pretzellogic]]> Thanks,  John. Interesting to know.

]]> Thanks,  John. Interesting to know.

]]> <![CDATA[By: rafach]]> I was thinking of the 門外漢 origin. Is it something similar to a 漢族 outside of the door? Which means, foreigner, someone not in the same field, amateur?

]]> I was thinking of the 門外漢 origin. Is it something similar to a 漢族 outside of the door? Which means, foreigner, someone not in the same field, amateur?

]]> <![CDATA[By: John]]> I just got an additional message from Dan Harris (author of the blog post I linked to above):

Beware, forming an HK company is no different from forming a US company, in terms of being legal on the mainland!

]]> I just got an additional message from Dan Harris (author of the blog post I linked to above):

Beware, forming an HK company is no different from forming a US company, in terms of being legal on the mainland!

]]> <![CDATA[By: connie]]> Hi rafach

你的理解很有意思！

门外汉的“汉”和汉族的“汉”，汉字一样，但是意思上没有联系。

门外汉的“汉”，指的是成年男子。比如：山东大汉，单身汉

]]> Hi rafach

你的理解很有意思！

门外汉的“汉”和汉族的“汉”，汉字一样，但是意思上没有联系。

门外汉的“汉”，指的是成年男子。比如：山东大汉，单身汉

]]> <![CDATA[By: roscovanbasten]]> @jgwilson - I actually still think there are a lot of 机会 to start new businesses, especially here in China. Sure, a lot of start-ups don't succeed, but that is sometimes more down to how they execute rather than whether or not they have found a good niche or not.

Especially now that the internet has levelled the playing field for small businesses to compete with big companies, there are still a mountain of opportunities..Here in Shanghai, everyone has their own entrepreneurial idea, because there are still so many services etc that have yet to be provided or properly set-up. And I am talking about Shanghai, which is the most developed of mainland cities..metropolises like Chongqing and Chengdu have still yet to be uncovered.....

]]> @jgwilson - I actually still think there are a lot of 机会 to start new businesses, especially here in China. Sure, a lot of start-ups don't succeed, but that is sometimes more down to how they execute rather than whether or not they have found a good niche or not.

Especially now that the internet has levelled the playing field for small businesses to compete with big companies, there are still a mountain of opportunities..Here in Shanghai, everyone has their own entrepreneurial idea, because there are still so many services etc that have yet to be provided or properly set-up. And I am talking about Shanghai, which is the most developed of mainland cities..metropolises like Chongqing and Chengdu have still yet to be uncovered.....

]]> <![CDATA[By: lujiaojie]]> 少数民族的男子和外国男子，我们也可以叫：男子汉  好汉，

他真是一条汉子！

]]> 少数民族的男子和外国男子，我们也可以叫：男子汉  好汉，

他真是一条汉子！

]]> <![CDATA[By: christine30550]]> Ooooh, 我也热烈地推荐（可以这样说吗？）潘先生请个本地代理帮他办注册流程哦。 I went through the process of registering a WFOE here in Shanghai, and it is quite 繁琐 even with a 代理。There seem to be a million authorities involved, and each one wants various forms and documents. But a good 代理 will guide you through the whole process, and after a few months (in our case), we were in possession of a bundle of company documents as well as the 6 Golden (well, red) Stamps, or chops (company chop, finance chop, legal rep 法人 chop, fa piao chop, contract chop, and customs chop). With those in hands, you can do anything here. A red stamp in China is what an authorized signature would be in Europe. Last time I went to the post office, I counted 18 (!) chops on the clerk's desk, in all shapes and sizes.

]]> Ooooh, 我也热烈地推荐（可以这样说吗？）潘先生请个本地代理帮他办注册流程哦。 I went through the process of registering a WFOE here in Shanghai, and it is quite 繁琐 even with a 代理。There seem to be a million authorities involved, and each one wants various forms and documents. But a good 代理 will guide you through the whole process, and after a few months (in our case), we were in possession of a bundle of company documents as well as the 6 Golden (well, red) Stamps, or chops (company chop, finance chop, legal rep 法人 chop, fa piao chop, contract chop, and customs chop). With those in hands, you can do anything here. A red stamp in China is what an authorized signature would be in Europe. Last time I went to the post office, I counted 18 (!) chops on the clerk's desk, in all shapes and sizes.

]]>