It was in March 2020 when COVID-19 pandemic struck and devastated businesses across the globe. Now, most of these enterprises are finding it hard to get to their pre-COVID-19 levels. Well, the last thing that should ring in your mind is giving up because a solution for you is only a click away – moving the company to China. So, if you are hearing of this for the first time or have been thinking about it, this post will highlight the main advantages of going to China. 

What Does Company Formation in China Means?

Opening a company in China can be likened to forming a new business back home. However, the legislation, offices involved, and types of companies when forming a company in China differ.  In China the process, especially for a foreigner, can be complex, and trying to handle it alone is likely to result in disappointments. 

Owing to the diverse opportunities available for traders, you need to be extra careful and select the right company formation. For example, the most preferred type of company is the wholly foreign-owned enterprise. Apart from allowing you to hold 100% shareholding, the company vests all the powers for decision-making on you. 

If you want to select a different type of company, such as a representative office (RO) or joint venture (JV), rethink the idea because they come with major limitations. For example, the representative office does not allow foreign investors to engage in profit-based activities. 

Special Benefits of Company Formation in China 


Now that you know what opening a company in China means, let us now turn to the benefits. The most notable benefit of opening a company in China is preferential treatment, which helps companies to grow rapidly. This is one of the reasons why top manufacturing firms on the planet are based in China. When you form a company in China, here are additional benefits to expect:

  • An educated workforce: Every year, millions of university graduates enter the job market, and you can count on them to help drive success in your company
  • State-of-the-art infrastructure: Whether you prefer locating your company close to the sea or hinterland, you are sure to enjoy some of the best infrastructure in the country. With carefully done roads, airports, seaports, and internet infrastructure, moving raw materials or finished products will be easy. 
  • Strategic location: If you want to grow your company faster, it will be a good idea to consider reaching out to neighboring markets. For example, you can easily access the Hong Kong, Singapore, and South Korea markets for your company products. Indeed, you can even access the rest of the globe after forming a company in china. 
  • Loads of incentives for new companies: The Chinese administration knows that for any business to grow, incentives can come in handy. In line with this, China offers reduced taxes for companies that enter and work from the free trade areas. You will also get reduced tax rates for selecting the encouraged industries and opening the enterprise away from coastal cities. 
Company Formation in China

What Is the Most Convenient Way of Registering a Company in China? 

The benefits we have listed above are only a scratch on the surface. Expect to get a lot more benefits. The most effective method of company formation in China is seeking expert help. These are professionals that have been in the market for some time, and you can count on them to promptly incorporate your firm. Now unto the more juicy part: the experts can also help you craft a winning strategy for the new company. 

When registering a company in China, your best partner should be an agency of experts. These professionals have seen others come and fail or succeed and will tell you how to register, enter, and expand your company in China. 

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