8 Steps to Starting a Business in China - NiceNIC.NET

1. Do your homework.

Talk to people who have opened offices in China. Ask them how they succeeded and especially how they failed.
Make sure you're informed about the state of the industry you're in. A lot of this research can take place from your own home.

China wants high-tech.

China does not want pollution.

Chinese want businesses that will give a lot of people good jobs.

Chinese want to encourage development inland.

2. Pick a location
First, get to know the big cities. Shanghai, Beijing and Guangzhou are the major business, government, and industrial centers.
Once you've settled on a region, you have to find an office, since you'll need proof of a lease to register your business.
You have to get an office rent agreement and you can use that as your office address, the agreement essentially promises you the space on the condition your business gets approved

3. Choose an entity status

A joint venture requires a partnership between a foreign business owner and a Chinese citizen.
Representative offices are an easy, low-cost way to go, but it drastically limits the scope of what you're allowed to do in China. 
The most common type of entity, therefore, is a wholly foreign owned enterprise, known as a WFOE.

4. Develop a business plan
A detailed five-year business plan is crucial, because once the government approves it, you will be able to operate only within its guidelines.

Make sure you include your location, projected revenues, product or service description, expected number of employees and budget requirements in the plan.

5. Find a liaison … or several
No matter how informed you are, you won't get very far without consulting a representative to register your business.

A qualified liaison should be able to tell you where you need to go to register, whether it's the local, provincial or national government, and should do the talking once you get there. You need somebody who has negotiated that territory a number of times before and you absolutely have to have people who speak Chinese to go meet with the local officials.

6. Find a bank
This part should be quick and easy, since there are plenty of banks with a huge presence in China.
If you're dealing with a bank that doesn't have any relationship with banks in other countries, it makes it tough to keep track of your money. You need to make sure you have a bank in your own country and a bank in China that has some sort of corresponding relationship, so your banking is more transparent.

7. Hire a staff
Hiring in China is a delicate process, especially when it comes to hiring managers. Don't assume that just because a person's English is impeccable they'll be able to run the business properly.
If all things are equal, the language skills can be greatly beneficial, but it's far more important to have a smart business person in that role who's going to run the company the way you want it run.
Good talent doesn't come cheap, according to the experts, so if you want the best, you have to be willing to pay them what they're worth.

8. Take it slow
Now that you're all set up, you have to manage expectations. 
Don't jump into quick business deals just to turn a profit. It takes time to build business relationships over there.

What will win you success in the Chinese market is patience. The Chinese have been doing business in a certain manner for thousands of years. Don't even start to think for a millisecond that you're going to change it.

Visit NiceNIC.NET website to get more practical advice on getting connected with the huge market of China!

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How To Do Business In China - NiceNIC.NET

China is one of the world's largest and most alluring markets, and as it continues to become a more attractive destination for foreign investment, entrepreneurs and investors are flocking to the country to take advantage of the many benefits of doing business here.

In recent years, however, the Chinese business climate and regulatory structure have improved, and experts and business people say that with a little effort and knowledge, launching a venture in China can be easier than ever.

Find a Chinese partner

The first and most important thing anyone hoping to set up a business in China should do is find a local partner. A local partner will most often be an established Chinese-owned company, or a businessperson with good contacts in the country who can navigate the complicated regulations and legal processes and, most importantly, deal with China's government directly.

Understand the business culture

China is a world away from America or Europe, and more than a world away when it comes to doing business there. In America, contracts, deals and other arrangements are fairly transparent between businesses working together. Not so in China.

In China most business gets done over drinks in social settings, as opposed to in America, where it often goes done in the boardroom or on the golf course. And decisions are more often made informally during conversations rather than on paper, a fact that helps keep the country's "old boys network" alive.

Realize unique opportunities

It may sound like doing business in China is quite the nightmare, and it can be in some ways. But if you can deal with the headaches, you can get access to a wide range of unique and lucrative opportunities.
The Chinese government is emphasizing innovation as one of the keys to its future economic success, and as such, it's providing a number of unique incentives that can make doing business there very profitable.

China is no longer the Wild West of business that it once was, but it is still a dynamic place where bold, informed investors and entrepreneurs can trade a little risk and uncertainty for potentially great reward. It's globalization in action, and it's not as difficult or scary as it was even a decade ago.

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