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Open a Shop in China

Open a Shop in China

China`s rapidly growing economy is an attraction to foreign investors looking to start a business. The high demand for foreign products and the prestige of western labels may turn the decision to open a shop in China into a profitable business venture. Nevertheless, you should be aware of the status of the current market before setting up a shop in China. You can rely on the professional help of our attorneys in China if you need information about the commercial legislation of this country.

The process of opening a shop in China

According to the Chinese legislation for foreign investments, there are specific rules and regulations which apply to foreigners who want to start a business in this country. We provide you with a description of the process to undergo in order to open a shop in China. The first step required is to choose a legal entity for your business.

For a shop in China, a joint venture is the most common and appropriate type of company to set up. It is important to find a Chinese business partner you can trust if you want to open a shop in China. Finding a location for your shop is the next step to take. The large shopping areas in the major cities are the most common places to set up a shop in China. You also have to prepare the necessary documents to have the company registered. Here is a list of papers you need in order to complete this step:

-the articles of association,

– the business licenses (locals and nationals),

– the certificate of status,

– a bank letter attesting the deposit of the initial capital,

– a description of the investor`s business activities and purposes.

Please note that an agreement for all required leases must be provided to the local authorities when applying for government approval for your business. Proof of purchasing a property or a rental contract is what you need in this specific situation. Hiring employees and registering them with health insurance and pension funds is the last step to take before opening a shop in ChinaOur law firm in China can advise you in all legal aspects related to opening a shop in this country.

Licenses and permits for shops in China

It is a common practice in China for shops and restaurants to display their business license and permits in their premises to demonstrate that they are lawfully doing business. Here is a list of the details a shop license should contain:

•    The registration number;
•    The official name of the company, its type and registered address;
•    The legal representative;
•    The registered capital;
•    The date of establishment;
•    The business scope;
•    The license expiry date.

Please take into consideration that all business licenses are written in Chinese and it may be difficult to understand their content. Feel free to contact our lawyers in China if you need help in obtaining a business license or permit for your shop.