China market is favorable in terms of its huge size and great opportunities, in despite of its complex regulations and legal proceeding. Hence prior to entering the China market, it is often advisable to find a reliable local partner to help you navigate through. Here are the 5 reasons why local partner is crucial for foreign startups when exploring the China market:
Comparing with many other countries and regions, company registration is a complex procedure in China that requires proper planning and execution, and thus I would not recommend doing this on your own. Issues such as what type of entity to register, how to file the registration to the designated authority, what documents should be arranged, what certificates should be applied for your specific type of business, need to be carefully considered beforehand. Moreover, even after the entity is duly set up, how to fulfill your mandatory tax liabilities, how to pay your employees, and if you are in the high-tech industry, how to apply for the state recognition of high-tech enterprise and apply for the government funding will be the issues you need to deal with. In order to avoid any misunderstanding or misbehavior, consulting with local professional firms for solutions would be highly recommended.
Laws and Regulations
Many incentives have been published in different local areas across China to attract investments and prosperous high-tech projects in and out of China. Getting a reliable and professional local partner, for example WTOIP Global, will definitely help in terms of applying for those incentive policies and government funding.
'Guanxi', or relationship, is one of the most frequent word associated with China Studies in many other countries. The challenges connected to building relationships and trust especially with government officials can be a challenging factor as to starting your business in China. A trustworthy Chinese local partner can leverage his contacts and experiences with the government, and build up a bridge for you to ease the relationship hardship.
Registration handling agent is fairly common in China so it would not cause you much trouble, whereas not many service providers in China are able to deliver sound business analysis for your decision-making prior to entering the China market. With sound business analysis, you could tell your potential customer, market volume and competition, position of your technology and the development trend of the industry etc., so that your could plan in advance the market penetration strategy and its wise deployment. The China Business Starter Pack from WTOIP Global can be one of your ideal solutions in that it includes the provision of a Preliminary Project Feasibility Study which delivers answers to the aforesaid issues, giving you a thorough understanding of the Chinese market, technology and intellectual property relating to your product and innovation.
Intellectual property is a crucial topic for foreign startups in China. Many foreign tech startups believe that their trademarks at home would automatically empower them equivalent legal right in China. In fact this is never the case. In China, the first person who registers the trademark would be the owner, regardless of whether or not the one is the first person to use the trademark. A local IP firm can help you check whether your technology is duly protected by patent, and handle the remaining legal proceeding.
WTOIP Global, as a sharing service platform with a focus on IP, provides comprehensive entrepreneurial and legal services to our clients, helping foreign tech startups launch their business in China with no legal hurdles. Services include preliminary project feasibility study, potential business partner pitching, one-stop intellectual property solution plan, local incorporation registration and application for government funding. WTOIP is your best companion to launch business in China.