Tips On Setting Up A Business In China

If you are thinking about setting up your first business in China, we have a number of tips to help you do so…

Negotiating A License In China

A Chinese business license may be something you require. If so, it is always important to seek the assistance of an expert firm that can help you along the way. Nonetheless, understanding the process and the various steps to secure a license is also important. This is especially the case if you are looking to strike a joint venture agreement or manufacturing agreement, as they tend to be a lot more complicated. Before a licensing agreement can be made, you need to know the basic terms, and you need to get clear on a number of elements before negotiating a deal.

Firstly, when acquiring a business license in China, you need to ensure that any IP, i.e. copyrights, patents, and trademarks, are registered in China. The last thing you want is for your China licensee to file for your trademarks, enabling them to have leverage when negotiating against you. You also need to be certain of the legitimacy of your potential licensee. Make sure they have experience in your type of product, and that they are monetarily sound so that they can fund the licensing fees. It’s also vital to make sure their role will enhance your reputation, rather than damage it.

Other factors to consider when it comes to a business license China is who is going to fund the taxes on the royalties in China, who is going to pay what in terms of marketing, what sort of controls you want over the licensee’s use of your name, your product, and your technology. You should also think about how long the license is going to last, and if you are going to enable the licensee to sublicense, and if so, who they are going to sublicense to. Needless to say, it is imperative that the agreement complies with all of the applicable laws in China.

Being Certain Of Quality

All new businesses need to deliver on quality. If you don’t, you’re never going to be able to survive out there! There are a number of different ways to make sure of this. Firstly, you need to determine the feasibility of your idea. A lot of people think they have great business ideas but, in practice, they are not feasible. There are numerous reasons why this can be the case, from the lack of demand to difficulties in executing the strategy.

Once you have a feasible idea, you need to put measures in place to make sure you deliver on your promises. There are companies that can assist with quality control in China, and it’s definitely worth looking into these services. They can assist with everything from factory audits to pre-shipping quality control.

All in all, if you follow the tips that have been provided, you will increase your chance of success when it comes to setting up a business in China.