Welcome to China Service Mall!

Opening a business in China (Beijing) is very difficult. Firstly, you need a residence permit. It will also make the experience considerably easier if you have a local partner. The money and enthusiasm you have are never a problem; even if they both exist in abundance. The biggest problems are all involved in the start-up:

To open a bar/cafe/restaurant you need to obtain a license from the local government. These are very hard to obtain. Bars and cafes are easy but anywhere that makes food increases the difficulty by 500%. This license takes into account the area, the health and safety of the establishment, the neighbors and the opinion of the local police force (more on them later...).

Once this license is obtained you need a watertight contract with your landlord. I suspect that your legal fees in the initial phase will be close to ten thousand US. If you think this is high, if you think this is an unnecessary fee, you will hit serious problems later on. I know personally numerous foreign enterprises that were shut down by dubious landlords. Rental law in China is banditry. You must get a long-term contract attached to a fixed rent (although normally it will be tied to inflation or a pre-arranged annual increase).

Back to say the local polices. They control the area and they can be your best friends; but they can also close you down. They know that you are foreign and they will expect payment for your 'safety'. I have a friend in Houhai who has a bar. Every night after their shift the local police come in for a good two hours. They have never paid. If you have serious guanxi don't worry. If you don't then you will need to compromise your morality/finances... a lot. This will involve considerable 'friendliness' and a lot of money that you may not have accounted for in your business plan. If you pay 'real' taxes you will find it harder to make a profit; if you don't you leave yourself very open to being blackmailed.

China teases us all. We all see opportunity everywhere. A coffee shop here, a cool bar there... but it really is not that easy. I am not a cynic and I am far from jaded; I am simply experienced and realistic. If you want to open a business here you need the capital first. But after that you need an extremely able Chinese representative who has been through it all before. If you don't have one (that you trust) and you decide to go it solo.... Hell you better be ready for the jungle!