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company setup

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CJT7818

Newbie

Joined: Jan 28, 2009
Posts: 7

Status: Offline

Posted: June 21, 2009 - 10:24 PM
Post subject: company setup

I'm looking to startup a restaurant supply company in china...both myself and my partners are US citizens and we're wondering do we need to go through the process to setup a WFOE? If so what is the typical process? We're not looking to start a restaruant, just a company that produces or import restaurant supplies....any help would be appreciated...thanks.

Shangstar

Fire-eater

Joined: Feb 07, 2008
Posts: 2787
Location: Spitland
Status: Offline

Posted: June 21, 2009 - 10:31 PM

I know for starters you should check the Catalogue on Guidance for Foreign Investment or something like that. This sets out every conceivable industry in China and sets out whether foreign investment therein is permitted, encouraged or prohibited. Obviously if your chosen industry is prohibited then you cannot use a WFOE.

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Charles Darwin: Differences between humans are differences in degree, not differences in kind

caffe1962

Barker

Joined: Nov 24, 2006
Posts: 167

Status: Offline

Posted: June 21, 2009 - 11:01 PM
Post subject: Re: company setup

CJT7818 wrote:

You want open a company to import items for restaurant? you go on big competition and problems, the Chinese gov change rules many times for that, the imported items need each confection a licenses, now is allow only have no more of 5 items licenses each time, must have strong connection with the customs, or many think will be stuck in the port, and many time you will have expired prodocts, and the chinese gov dont care for this, you will have a big chinese company that controll the market here and big company thta have strong relations with important chinese person that can imported many illegal think from HK, if is your idea try , but be ready for the hard think to do, can write me in private, can give more help,
for open the company is no problems there many agency here that do this job, don't go with foreign lawyer or company thney will suck your money for open one company,use a local office, also i just know thta from now to open a WFOE in enoght 300,000 rmb, no more 140.000US$ as deposit, but i need to check with the lawyer

tihZ_hO
Post Roaster

Joined: Feb 17, 2004
Posts: 4214
Location: Shanghai / Jakarta

Posted: June 22, 2009 - 12:09 AM

CJT7818 have you and your partners been to China?

I see many major names already represented here; Taylor, Hobart etc and with so many Chinese manufacturers what could you export from the US or manufacture in China which has a market? Would it be exporting US oil to Saudi Arabia?

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Battered deep fried butter, donut hamburgers, is it any wonder America has more body mass than China. China is the counterweight for America or else the Earth would be unbalanced and fly into the sun.

RussianBear
Veejay
Veejay

Joined: June 25, 2008
Posts: 2148
Location: Milky Way galaxy

Posted: June 22, 2009 - 07:12 AM
Post subject: Re: company setup

CJT7818 wrote:

Hey dude, that is not easy work on chinese market. In past we has representative office in Beijing for supply russian lens, binoculars, night vision devises, etc. For export any stuff you may use a bulk of chinese export companies for small money and transfer goods to local chinese company or person's business licences - that is easiest ways for the day.

Another difficult is what chinese market is full (as everywhere on the Earth) and you will need offer installments for all the goods. That is only way for get a chance on a market. However, it will recure more financial sources and time and yet not guarantee success. Forget about vines and beer - it's FULL. Good luck !

PS: After some time (and spending tens of thousand dollars)you may notice that make money on chinese market like dig gold in mountaines as well chinese goods gone to World like a "knife to butter".

johnwatine

Squeeker

Joined: July 16, 2009
Posts: 12

Status: Offline

Posted: July 16, 2009 - 01:36 PM

Hi,

We are a US company already set up in company providing english tutors to Korean people based on online teaching located in Manilla. And we want to open a new branch here in Shanghai.

So we want to know about all legal chinese procedures, creating bank account, established office in Shanghai,... to do so.

Does anybody a contact, chinese advocate, or whatever that could advise us?

Thanks

John

Shangstar

Fire-eater

Joined: Feb 07, 2008
Posts: 2787
Location: Spitland
Status: Offline

Posted: July 16, 2009 - 01:53 PM

There are minimum levels of investment to set up WFOEs but there is no single fixed level. Different industries require differing levels of registered capital. In general, the lower the level of your reg cap, the more restricted your permitted scope of activities here. The aforementioned catalogue will provide info on how much reg cap and what you can and cant do.

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Charles Darwin: Differences between humans are differences in degree, not differences in kind

Snippets

SuperStar

Joined: Apr 09, 2005
Posts: 1415

Status: Offline

Posted: July 16, 2009 - 08:29 PM

CJT7818: It depends - are you going to be a manufacturer or trading company? Or do you want to focus on the marketing and have a company like mine handle sourcing, product development and order fulfillment (pick, pack and ship, drop shipping, etc) for you? The latter would mean you would not need any license.

johnwatine: Could you describe your business in more detail to us please? What kind of physical presence will you actually have in China?

Both PM me if you want more help in private and/or the contact details for an excellent company that can answer all of your questions about setting up a company in China.