China is without a doubt the new economic driver on the planet, contributing about 30% of the GDP between 2010 and 2019. The country is rapidly opening its market to global trade as it shifts from an agro-dependent to a technology-driven economy. This shift is already bearing results because China’s economy is now the second-largest and is predicted to become the number one in the coming years. These details make it the perfect place to register your company when targeting rapid growth.
Four Main Advantages of Company Formation in China
- Supportive Government
For about 40 years, the Chinese administration has been focused on supporting businesses to ensure they become successful. One of the most notable things is that China now allows foreigners to have 100% shareholding in their companies. As a foreigner, you only need to register a wholly foreign-owned enterprise (WFOE) in China to have full control over its operations. Other areas where Chinese administration is very supportive include:
- Incubating business ideas.
- Offering subsidies.
- Cutting down tax rates for companies.
- Abundance of Skilled Labor
The Chinese workforce is both competent and highly talented. Local universities and colleges in China produce millions of skilled employees that you can count on for high productivity. In addition, China has made it very simple for Chinese in international universities or experts to come back home. Bilingualism is also on the rise, with more Chinese speaking English now than at any other time in the past.
Indeed, China has added English to its curriculum, encouraging learners in both colleges and universities to learn the language. The bottom line is that you are sure of getting qualified, talented, and English-speaking professionals when opening a company in China.
- The abundance of Opportunities for Growth
For most investors, the primary reason for expanding to China is to be able to access a bigger market. China offers investors a very large market of more than 1.4 billion people. After company registration in China, opportunities will keep opening, and all that you need to do is find them. A company that offers, say, automaton control products to manufacturers in Shanghai, can consider reaching out to others in Shenzhen, Chengdu, and Beijing. Indeed, you can even trade with companies outside China, exploiting double trade arrangements (DTAs). In China, there is no limit on how successful your company can be.
Register Your Company with the Assistance of an Agency of Experts
One thing that you need to appreciate when setting up a company in China is that doing business can be a daunting task for a new firm. As a starter, the country’s culture can be pretty confusing for western brands. This implies that while the benefits we have listed above are so attractive, the path is not all smooth. The best way to navigate through the process of company registration, compliance, and operations for your company in China is to seek help from experts.
An agency of experts can assist you to understand the market well and comply with all the laws and policies set by the national and state administration. Further, it can help you craft strategies to give your brand a competitive advantage over others on the market. That is not all. You can also count on the agency of experts for other top executive functions, such as accounting and filing tax returns.
As you can see, China is a country of opportunities. The suggestions we have listed in this post are only a drop in the ocean. There is a lot more for you. All you need to do is work with an agency of experts, such as Hawksford, for assistance with registration and every other type of executive support you want. Let an expert hold your hand, and success will be only a step away.