China is the fastest-growing economy and the second largest on the globe. For years, it has become the ultimate destination for foreign investors because of its strategic location, large market, and numerous opportunities for growth. Therefore, China company incorporation can act as a springboard for businesses to become multinationals, but a lot of people hold back because of misinformation.
In this post, we will debunk common myths about company incorporation in China. We will also tell you how to simplify the process of company registration in China with the assistance of experts.
Myths about China Company Incorporation Debunked
Here are some of the common myths and misinformation that you need to know when considering opening a company in China.
- Companies Go to China Because of Cheap Labor
This argument might have been correct decades ago but not any longer. When China started its current series of economic reforms about four decades ago, it targeted providing the right environment for business. These include tax incentives and defining paths for China-based companies, which investors find irresistible. Other benefits that make China attractive include:
- Numerous opportunities for growth in the entire country.
- Easy access to the neighboring markets.
- Availability of skilled workforce.
- Highly developed infrastructure.
- Most People in China Do not Want Western Businesses
This is a misconception. The truth is that the Chinese are very outgoing, but they have a strong attachment to their culture. For example, they prefer having a personal touch, deep connections, and being in cohesive communities. So, you should put more focus on referrals, and relationships, and create products that address the core issues of the local people. With this focus, you can rest assured of building a large community around your brand, growing sales, and becoming very successful.
- Registering a Company in China is Impossible
We must say that China company incorporation is not easy, but not impossible. Often, foreign investors find it challenging because of the long list of required documents and the need to deal with multiple departments. The truth is that you can simplify the process of company formation in China by working with an agency of experts, such as Primasia.
- China Offers Little or No Intellectual Property Protection
This is another incorrect assertion and you should not fall for it. China has been working extra hard to ensure that inventors reap from their innovations. Since 2001 when China joined the World Trade Organization (WTO), intellectual property protection has been enhanced significantly. In 2010, China was ranked fourth on the number of patents that were filed in line with the Patent Cooperation Treaty (PCT).
Whether you plan to start a pharmaceutical company or develop the next generation app in artificial intelligence, China can help to protect it. Therefore, you should not hold back from going into this high-potential jurisdiction for success.
China Company Incorporation is Easy and Fast with the Assistance of Experts
If you want to simplify the process of company formation in China, the best method is to work with an agency of experts. These are professionals with years of experience in company registration and you can count on them to correctly prepare the required documents and liaise with different departments. With a good agency of experts, such as Primasia, you should also expect more.
Primasia works with professionals who will also come in handy in helping you with the complicated task of company accounting. Note that China uses the Chinese Accounting Standards (CAS), which are different from the common International Financial Reporting Standards (IFRS). Other areas that Primasia can assist you in include filing tax returns, payroll management, and strategy formulation. Visit Primasia now to learn more about China company incorporation and all the assistance you need to succeed in business.
