Hi All,
I know people posted different threads in the past regarding opening a business in Kunming, maybe things have changed and I'd like some up to date info.
I am planning to open a small business in Kunming. Do you know where can I find some info on how to open a business and which kind of fiscal entity should I choose?
Thank you for your help!
Ben
Yeah things have changed. It's gotten more difficult. Good Luck!
Perhaps it will be best to begin to describe what type of business you are trying to start.
This way other readers can give you more direct comments on based your specific needs.
Rest assured you will receive many comments from the many experts on this forum.
Talk to Max. Keep in mind if the business is to be wholly owned by yourself or other foreign investors and you're looking to get a work and residence permit issued to yourself and/or your partners, you'll need to wire a substantial amount of funds as foreign currency from your home country, which will be reflected as your registered investment capital.
By the way, the process of opening such a "WFOE" is not fast, straightforward or cheap.
Actually registered capital requirements for foreign investors have been loosened a lot in recent years, from what I hear also in Kunming.
Basically during registration process you can choose to only "subscribe" to a schedule by which you will make the actual payments, and this can take place in number of years after your company is already running. So you may not need any major up-front investment.
There is also a fairly new business vehicle "Foreign Invested Partnership Enterprise" or FIPE, which has no capital investment requirement at all, but process for this is not established in Kunming yet.
However, these changes only relate to company registration.
If you will need a visa for yourself, then the Entry & Exit Bureau will have some requirements for giving you the visa - and these requirements are lagging behind reforms in company laws.
You may find that you need to provide personal bank deposit in the range of 300 000 RMB fixed for a few months, if your company does not have equivalent capital investment in place. Until few years ago, this was also the figure you would be looking at to get a business running here as foreigner.
Thanks a lot for your replies. I am planning to open a small tofu factory.
DanTheMan,
Thanks a lot! I'll contact Max.
Do you guys know where I can information on how to open a business? I am interested to learn about the different type of fiscal entity (limited liabilities, etc.).
Thanks!
ben are you chinese or laowai?
if the latter then the phrase 'coals to newcastle' spring to mind. or a chinese guy going to scotland and opening a haggis factory
Dread to think what would be in the haggis
@Ben金_06
Just a word of advice - before you open a new business - go get your pre-sales agreements FIRST. If you try the "field of dreams" approach - you may find yourself without revenues for several months or longer. Although pre-sales agreements may or may not be legally and financially binding - they're a good indicator of what's to come.
