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RE: F&B license

RE: F&B license

Postby henry78 » Wed Feb 15, 2017 10:22 am

Hi,

Was keen to take over one of my friend's shop that sells bottled beers, coffee and some light foods. He told me that it comes with light FNB license which means the shop is not allowed to have gas and fire. Only electric cooking appliances is allowed.
However I asked him that if i need a company to take over the business and he explained that I can actually use my personal name for it to run the business and also to get the licensed transferred to my name. I find it a bit odd.
I'm on a working visa here as I'm working for a corporate company. Can I run a business on that visa?

I really like to take over his shop as I always wanted a restaurant of my own as I will know exactly that the food i'm eating is safe and plus it seems fun.

Hope someone can shed some lights here with some info.

Thanks in advance
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Re: RE: F&B license

Postby Risuparta » Wed Feb 15, 2017 2:23 pm

Your options greatly depend on what kind of business structure is currently used to run the shop.

Chinese nationals are allowed to run "individual proprietorship" enterprises, which is the simplest form of business in the country, but this is not allowed for foreigners (Law of the People's Republic of China on Individual Proprietorship Enterprises, article 47).

Options for foreigners are Wholly-Foreign Owned Enterprise (WFOE), Joint Venture (JV) or Foreign-Invested Partnership Enterprise (FIPE).

If you plan to run the business yourself without any partner, then WFOE is your only choice. JV requires a Chinese company (not individual) as partner, and FIPE should be the easiest, as with it you can have either a company or an indivudual, Chinese or foreign, as partner.

This begs the question, is the friend giving up the business Chinese or foreign national, and if foreigner, he should already have some kind of business entity behind the operation, and what you should negotiate is the sale or transfer of the whole business entity to you. In which case you would be acquiring the relevant business entity (business license), not just the shop, and would not need to register new business - although transfer related paperwork remains.
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Re: RE: F&B license

Postby henry78 » Wed Feb 15, 2017 6:05 pm

Thanks Risuparta for the reply. Thats what I thought too. But my friend is a foreigner too and he has everything under his name eg. tenancy agreements, personal account to accept payments, license etc
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Re: RE: F&B license

Postby Risuparta » Wed Feb 15, 2017 7:09 pm

The important question is, under what name is the business license (or does he not have it at all = illegal operation). It is essentially this business license, that should change owner in this scenario.

He should know whether he is operating as WFOE or not. If he is, you would buy the WFOE.
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Re: RE: F&B license

Postby Bridge2China » Thu Feb 16, 2017 2:16 pm

Hi,

Of course the company can be transferred to you,but the procedure is no less than setting up a new WOFE in your case, as all the names have to be changed and need the application to the respective government departments.
Let me know should you need the help with the transition or setting up a new one on your own.

regards
John

Email: bridge2china@163.com
Skype: brilliant-zhang
Phone: 15900 929486
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Re: RE: F&B license

Postby jeroenfish » Fri Feb 17, 2017 12:56 am

Technically it is possible but keep in mind that for an F&B license holder you also need certain certification from the FDA and some additional things!

Let me know if things work out for you, I am always interested in new locations!!!
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Re: RE: F&B license

Postby swisscook2016 » Fri Feb 17, 2017 9:11 am

I won't speak too much about the licensing issues - altough Jeroenfish is right. If you run a restaurant then you will have to follow a lot of FDA rules.

Having that said, I am not sure if running a restaurant in Shanghai without prior F&B Experience ( I just assume ) is that smart. Competition is fierce, margins aren't all that high and if you work in a day job then you will have to hire somebody reliable to look after the restaurant while your not there. Not easy. And not that cheap.

Opening a restaurant isn't that easy and not nearly as romantic as movies make it look.

If you have detailed questions feel free to PM me
Husband, father of two, travelling Chef.
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Re: RE: F&B license

Postby henry78 » Fri Feb 17, 2017 11:37 am

Thanks guys. To have experience one have to start somewhere. I'm prepare to lose the money I'm investing so I though I will go ahead. Ya agree its not cheap to get good staff and to run a restaurant. But I will take it as an expensive tuition fee to gain some first hand experience if things don't turn out well :) I believe if we serve food with love and passion as if we are making it for our love ones then things should somehow end well. I'm not in for the money anyway
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Re: RE: F&B license

Postby christinean1 » Mon Feb 20, 2017 4:08 pm

Hello everyone :)

I do have an experience in this field. If you need any help or legal advice. Pm me for details.

wechat: chrisstinearte
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