This page is an automated translation
Please see this page for original transcription.

يبدأ عمل جديدة في الصين ([بت] 1): كيان قانونيّ

أبريل - نيسان [4ث], 2008 بالصين عمل نجاح قصص

ب [توفّلر] [نيموث]

أجنبية بداية شركة في الصينل ال [نون-لور] بين نا, يشكّل الكيان قانونيّ لعمل جديدة يستطيع تصرّفت كمتراس الطريق صغيرة في المرحلة مبكرة. في الصين, تشكيل يستطيع كنت كثير متراس الطريق كبيرة, خصوصا بما أنّ أجنبية يحاول أن يبحر وزارات لا يحصى, [لنغج برّير], يطوّر ال [غنإكسي] ضروريّة, وفقط عموما رقم خارجا كيف النظامة يعمل.

واجبة إلى هذا, كان فكرتي أن يتلقّى عملي يبدأ في الصين باسم شريكة محلّية الذي' [د] يكون مسؤولة لكلّ حكومة, إندماج, وضريبة إصدارات بينما يتركني مع تنفيذ وعمليات جانب من العمل. [إين فكت], ه كثير يتيح لصينيّ أن يبدأ عمل (في الصين) من أجنبيات. حقّا, يحتاج أشخاص صينيّة فقط [كن1] أن يكون يمكن أن يبدأ عمل. مهما كان, فكّر أنا هذا كان الخطة جيّدة, غير أنّ بعد ذلك أسئلة من يبيع, إعادة الى الوطن الأرباح, [إتك] بدأوا أن يزحف داخل عقلي لذلك أنا بحثت إشعار إضافيّة.

رفيقة اقترح متعهدة أمريكيّة في الصين أنا أدمج يمسك شركة في [هونغ كونغ] أيّ بعد ذلك فتح فرع تابع [فورين ووند] كلّيّة ([ووف]) أن يشغل في برّ رئيسيّ. هذا يسمح ال [هك] شركة أمّ أن يكون اشتريت وبعت دون في أيّ وقت يلمس الفرع تابع ولذلك يضطرّ عالجت مع عنوان إنتقال في برّ رئيسيّ (ظاهريّا كابوس).

I cross-checked this advice with another Australian entrepreneur in China who said this only works if you have operations in another country. According to her, the Chinese government doesn’t allow this method if you don’t have operations in another country, which I have no intention of having (initially, if ever).

Further research suggests I may not be eligible for a WOFE anyway as I intend to ’sell to the Chinese market’, well, more accurately provide a service to expats (and some Chinese) within China but I guess that’s still the same. According to that same site, my local partner could act just as I had in mind: “The local partner […] may be a silent partner who was acquired by the foreign firm simply to gain domestic market access.”

A different site suggests that information is outdated and therefore “With China’s entry into the WTO, these conditions were gradually abolished and the WFOE is increasingly being used for service providers such as a variety of consulting and management services, software development and trading as well. […] The advantages of establishing a WFOE include: Capable of converting RMB profits to US dollars for remittance to their parent company outside China.” By comparison to the Chinese who can start a business with CNY1, a WOFE requires registered capital of USD120,500.

Guess its time to consult a lawyer. In the meantime, I welcome anyone’s advice who has had experience with this.

Toffler Niemuth, Shop My Shanghai

To be notified of new entries by email, simply enter your email address on the top left of this page.

Related Posts

3 Responses to “Starting a New Business in China (Pt 1): Legal Entity”

  1. China Law Blog Says:

    Nearly everything you say on here is wrong. There is no good way to start a company with a Chinese partner without it being a joint venture. If you are going to sell to China from within China, you almost certainly do need a WFOE. It is almost always easier to have that WFOE owned by a foreign company (though it is possible to have it owned by you individually), but that foreign company certainly not need be from HK; in fact most of the time for our American clients it makes sense to form a US LLC to own the Chinese WFOE.

    I can tell a million horror stories of foreigners who tried to save money by having a Chinese “partner” start their business for them in China as a domestic company owned by the Chinese partner “on behalf of the foreigner.” Worst case scenario is that the Chinese partner runs away with the company as soon as it gets profitable.

  2. China and I Says:

    Some people shall be very careful when they publish so called “experts”. The first guy or girl who comes to town -here actually in Shanghai- she/he knows how it works here.

    I can understand that there is a demand for China expertise on law and management but not everybody qualifies for it!

  3. Tina Chen Says:

    I agree. I also do not think it is a safe entity for you, Toffler! Now I am working in a foreign company in the name of Chinese local in Dongguan as a Canadian boss’s assistant. The problem will happen is like the local man will interfere every field, finance, management,ect. which will make you headache.
    Another, policy of the inner China and coastland economic area is different. So where is your ideal place for entity?
    Anything you want to know more about China, you can contact me at: tinaleaf33@gmail.com

Leave a Reply

*
To prove you're a person (not a spam script), type the security word shown in the picture. Click on the picture to hear an audio file of the word.
Click to hear an audio file of the anti-spam word

  • China Business review