Doing Business in China

A trading comany with import and export licence is essential in China if you want to do business in China.Here are some answers about how to setup a trading company with import export licence in china.

Where should the trading comany be set up?Hongkong or China mainland?HK is someone's decision before.But you had better build a trading company which established in China to export goods directly from China to rest of the world. Choose a city that you start your business would be closed to most of your suppliers.If you only have a HK company,you can use an agent or ask your suppliers in China.

What's the minimum capital required to set up the trading company?There are two different issues to consider.First, the written regulations of the minimum amounts needed to be invested. Second the actual minimums in practice.

As it did in Shanghai,the minimum is US$140,000 and ideally you should have more than this amount. Why? Because you will get approved much easier that way. If you use a lower figure, you will find a lot of government departments will not be very interested in your application.

Especially the first "gatekeeper", the Foreign Economic people, will look very suspiciously at your feasibility study and reasonably question: How can you survive with so little money for set up, expenses, and working capital? Yes, you can explain how you are going to run a low-cost "virtual" business, but this will only make them more uneasy. The more you explain, the more you will appear to be an uncommitted middleman "no value added" company.

I know you may have many arguments against this, but in the end, they make the decision nearly without discussing it with you.