International Expansion: A Guide to Successfully Bringing Your Business to China
If you are planning to bring your business to China as part of a global expansion, then there are many things that need to be considered first.
Do you have the right influx of capital to fund such a venture? Have you ascertained what sort of model will be the best fit for your company? Do you know how to find and retain the best employees for your local offices?
In order to help you sift through some of the big-picture aspects of bringing your business to China, here are a few points to take into consideration.
Decide What Type of Entity You Will Be
When you bring your business to China, you must choose what sort of entity you will be. You can decide between setting up a Joint Venture by taking on a partner already located in China, a Representative Office as an extension of your current entity, or a Wholly Foreign Owned Enterprise.
There are a number of pros and cons to each model, but one of the major differences between them has to do with the amount of control you will retain.
Finding and Hiring Employees
One of the more important things you need to be aware of before you set up your new offices in China is the difference between employee relationships there and those of your own country. Everything from the standards of pay to the amount of leave that workers are entitled to varies from nation to nation, and you need to understand to the best of your ability those that apply to workers in China.
Another thing that can complicate the hiring process of your new employees is the language barrier. Unless you are truly fluent in the local language, you risk losing things in translation when you are trying to find the right people to join your staff. You might consider using an established recruitment agency in China to help you bring the right workers on board.
Securing the Right Office Space
Real estate is another factor that varies from one country to another. Depending on what your needs for office space may be, you could be at risk of getting lost in the vast real estate market that exists in China.
Whether you are looking to lease or purchase a space, you will first need to acquire the appropriate license. The process of applying for and obtaining a business license can take a long time, especially if the industry you are a part of is regarded as a restricted industry in China.
Once you have your license and know that you are permitted to bring your business to China, you will want to enlist the help of local real estate professionals to assist you in finding and securing the right space for you. It is also advisable for you to find a local lawyer who can help you to understand the exact terms of any lease agreement you may wish to sign.