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

Commencer des affaires nouvelles en Chine (pinte 1) : Personne morale

4 avril 2008 par des histoires de succès d'affaires de la Chine

Par Toffler Niemuth

Début d'Étranger une compagnie en ChinePour le non-avocat parmi nous, la formation de la personne morale pour des affaires nouvelles peut agir en tant que petit barrage de route aux parties. En Chine, la formation peut être un barrage de route beaucoup plus grand, particulièrement car un étranger essayant de diriger des ministères innombrables, barrières linguistiques, développent le guanxi nécessaire, et juste généralement figure dehors comment le système fonctionne.

En raison de ceci, mon idée était de faire commencer mes affaires en Chine au nom d'un associé local qui' d soit responsable de tous les gouvernement, incorporation, et questions d'impôts tout en me laissant avec le côté d'exécution et d'opérations des affaires. En fait, son beaucoup plus facile pour le Chinois de commencer des affaires (en Chine) que des étrangers. En effet, les personnes chinoises ont besoin seulement de CNY1 pour pouvoir commencer des affaires. Quoi qu'il en soit, j'ai pensé que c'était le meilleur plan, mais puis les questions de la vente, du rapatriement des bénéfices, etc. ont commencé à ramper dans mon esprit ainsi j'ai cherché le conseil additionnel.

Un entrepreneur américain de camarade en Chine a suggéré que j'incorpore une compagnie tenante à Hong Kong qui ouvrirait alors une filiale complètement d'appartenance étrangère (WOFE) pour fonctionner en continent. Ceci permet le HK au maison mère mère d'être acheté et vendu sans toucher jamais la filiale et doit donc traiter le transfert de titres en continent (apparemment un cauchemar).

J'ai contre-vérifié ce conseil avec un autre entrepreneur australien en Chine que dit ceci fonctionne seulement si vous avez des opérations dans un autre pays. 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

One Response 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.

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

  • Advertise on China Business Success Stories