China Company

INTERSHORES I Things To Know Before You Set Up Company In China

If you are looking to expand your business into China, there are many considerations to be taken account into before proceeding with the China business registration. In this article, our team at Tetra Consultants has highlighted 9 pros and cons to know before you set up company in China which will help you in deciding whether to register company in China.



1.   Technological Advancement in China

China is well known as a leading technology innovator all around the world. As seen from emerging famous handphone brands such as Huawei, Oppo and Xiaomi, China is shifting towards being a technology producer. The advancement in China is a driving force for economic growth, and this includes scientific and technological advancements. Furthermore, China’s 14th Five-Year Plan spanning from 2021 to 2025 also includes a path to achieving the Sustainable Development Goals, which is currently the talk of the town. You can leverage the advancements and set up company in China, where your business innovations can be easily scaled up. This allows your business to gain more profits, achieving its utmost potential.


2.   Well-established Company in China

Having a local company in China allows you to issue formal receipts that are required for local accounting. This is an important procedure in the running of your business and attracting investors, as it helps your company to be deemed trustworthy and legitimate. Once you set up company in China, you would be able to open a local bank account. This is useful in allowing you to speed up your transaction, adapt to the China market and manage affairs with ease.


3.   China as a Trading Hub

As China has a huge population and land size, China shifted its focus towards international trade for economic growth. The government has shifted its policies to create a business-friendly environment. Furthermore, the companies in China understand the importance of entering the market globally, and these measures allow individuals to set up company in China more easily. Therefore, with China being an important part of the international trade, the businesses would be more globally oriented, which is a huge advantage if you wish to set up business in China.


4.   Lower Costs

Many investors are attracted to set up company in China due to the low manufacturing cost. As China has advanced technology and a large number of suppliers and manufacturing factories, your company would be able to enjoy low cost for factors of production. In the event you wish to expand your business, this low cost for factors of production would be a great advantage for your company, maximizing your gains and profits. Based on the industry your company is in and the products that you need, cutting 80% of your costs is possible.


Furthermore, the sheer number of manufacturing companies can aid you in looking for one that is suitable for your business, saving you time and money. Even though the minimum wage and working standards in China increased in recent years, the cost of manufacturing is still attractive when compared to developed countries. With an established business ecosystem, competitive currency, and low taxes for business, China is undoubtedly a leader in the global market and setting up a business in China is definitely an option filled with unlimited possibilities for you to consider.


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Whilst reasonable care has been taken in provision of information above, it does not constitute legal or other professional advice. INTERSHORES does not accept any responsibility, legal or otherwise, for any error omission and accepts no responsibility for any financial or other loss or damage that may result from its use.  In particular, readers are advised to take appropriate professional advice before committing themselves to any involvement in jurisdictions, vehicles or practice.









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