Tips for doing business in China
A lot of companies and individuals are turning to us with questions about how doing business in China works. Of course, it's not an easy question to answer because of the differences between different companies and situations. Though, in this post we will go through some of the biggest differences from doing business in China compared to many other countries.
1. The visa rules and business registration regulations are very complicated for one not used to them. The first obstacle is fluency in Chinese, because a majority of the documents are written in traditional Chinese. The second obstacle is that even if you understand the language, the formalia is written to be read by professionals, not civilians, which makes it an almost impossible task to manage on your own.
2. Connections within the market is highly valued. To find a local enterprise with knowledge about company set up is crucial for your establishment in China. It is also recommendable to co-operate with a Chinese tax and law expert because of the complexity in the tax system and the amount of laws.
3. Because of the complex processes and the many authorities you need time and patience when establishing in the Chinese market. Don't hurry, because the risk is that you have to do the process all over again will increase in such case. The way to success in China is to let the procedures take their time and rather focus on your own role, for example insure all the documents are filled in completely when handing to the authority.
4. Due to the size of the chinese market it should rather be seen as several individual markets instead of one giant market. To see it as one single market and try to conquer it all increases the risk of failure. Focusing on one or a few parts of the market will make it easier for your company to find and analyze potential target groups.
5. Conduct detailed market research to be able to take advantage of the unique opportunity China could be to you and your company. Success on the market is a two-part relationship and if you're not doing your part, the success will be absent.
6. Business culture may differ from what you are used to. Do some research about business etiquette in your specific area before starting to attend business meetings with local enterprises. It will help you from making the most common mistakes which can unfortunately harm your business operations.
To sum, up our final advise is simply to know your market before you start establishing. Knowledge about what you are dealing with will gain an advantage compared to them who lacks knowledge.
We wishes you the best of luck with your business and commitments in China!