China has been a major aim for people who want to expand his business. However, before you expend your business in China, what should be prepared? The following will give you answer.

 

If your company is ready for investing in China, You need firstly to know the China market situation and learn about the investment policies by Chinese government. The Chinese government has divided its industrial projects for investment into four categories classified as encouraged, permitted, restricted and prohibited. Secondly, the scale of the investment amount is also worth noting. For large investment projects of USD 30million or above, the approval authority rests on central government (State Council ministries); for projects under USD30million, in the unrestricted category or quota free, or license free, the approval authority goes to local government departments.

 

The State Development and Reform Commission and the Ministry of Commerce are responsible for review and approval of projects with total investment of USD30million or above or other projects that require special approval.

 

However, the local development offices and commercial departments of Provinces, Autonomous Regions, and Municipalities are responsible for review and approval of the following projects:

  

On the knowledge of both partners’ business area and financial status, the Chinese side is supposed to produce a project proposal to be submitted to the State or local development and reform department, or the technological renovation department for examination and approval. If approved, the Chinese side shall go to register the joint venture for protecting the company name and trademark.

 

Once the first step is finished, you and your Chinese partner are supposed to work jointly on a feasibility study which involves markets, capital, planned site, craftsmanship, technology, facilities, environment protection, raw material sales and purchases, economic yielding, proportion of local currency and foreign currency injection, infrastructure…etc. to be submitted to the State or local Development and Reform department, or the Technological Renovation department for examination and approval. Concurrently both you and your Chinese partner can prepare to discuss and sign a contract and other legal documents such as articles of associations.

 

After the feasibility study is approved, you can submit the signed contract and the articles of associations to the Ministry of Commerce or local trade and economic bureaus for examination and approval. Once the approval is granted, a certificate of approval for the joint venture is issued.

 

Starting from the date of receiving the certificate of approval for the set-up of a joint venture, you and your Chinese partner shall apply to the industrial and commercial department for registration to get a business license. The date of the license is the date of the establishment of the joint venture.

  

In China, The absorption means of foreign capital are basically divided into direct investment, foreign Government Loans, UN organizations and other sources.

 

To improve the legal environment and to create a unified, consistent and steady, pragmatic and feasible investment environment, the legal system is geared to open, just and transparent principle.

 

If you or your company decides to invest in China, the first and foremost importance is to know as much as you can the preferential policies available in China, so that you can enjoy the preferential treatment at maximum level.

 

Besides special economic zones such as Shenzhen, Zhuhai, Xianmen, Shantou, there are many other cities which can be invested and made full use. They will provide more competitive conditions.

 

Keep a permanence Chinese presence is varying important. You should know very well the local culture custom and the management culture. Avoiding do everything just as you think. Trying to adopting as much as possible the local human resources, that is very effective for the running of management of company.