Setting up your own business is not as easy and straightforward as many people believe because of the amount of bureaucracy and paperwork involved. It would be excellent if you could just come up with an excellent business idea about the product or service, stock up your store with whenever you need and then open the doors to the general public. It doesn’t work like this, and there are so many rules and regulations in place to make sure that you can’t start your own business in an easy and straightforward fashion. It is there for your protection and is also there for the protection of the general public as well.
With that in mind, imagine how difficult that it must be to expand your business and open up another one in a country other than your native one. Not only will the rules and regulations be much different but there is the language barrier as well because not everyone in China speaks English as well as you do. This is why you need to make sure that you get yourself on a China commercial register so that your business is properly registered and protected.
This is a completely different country that you are setting up a new business in and it’s important to make sure that you can hit the ground running. Business success does not come easy and so there is a lot of hard work ahead creating a new customer base and making sure that your new business enterprise can generate profits and become a complete success. This is just one reason why registering your business in China makes sound business sense and the following are others.
- You enjoy limited liability – If you were to set up your business as a sole trader or as part of a partnership then you leave yourself open to all sorts of liability issues. If your business isn’t a complete success and things don’t go as planned then there may be a court order to sell your assets including your home and your other personal assets. By registering your business enterprise, you get the financial security that everyone should enjoy.
- It will be a totally separate legal entity – It is very important that you separate your private business from yourself completely so that it can stand alone. This means that your business can enter different contracts, can set up its own marketing content, it can buy other properties and if someone needs to be sued, it will be the company in the company name. You will still be the owner of the business but for the right legal protections, but this needs to happen.
- It is essential for the long-term – Nobody knows what’s going to happen to your business next week never mind 5 to 10 years from now. If the business is sold on because it is so successful or the ownership changes hands then by registering your enterprise, you are providing it with stability so that it can continue to operate and provide a product or service 25 years from now for the new owners.
- It provides business credibility – Customers need to be able to trust your new business as do your suppliers. In these days of fraud, everyone needs peace of mind knowing that your business is a credible entity and that it can be trusted and especially so if they are making payments with their credit or debit cards. By registering your business, it will be seen as a serious and professional institution that can be trusted.
- It comes with many tax benefits – Like any government, the Chinese government tries to make it easier for businesses to operate and so you will be able to enjoy a much lower tax rate then you would if you were a sole trader for example. There are also many tax deductions that will be made available to your business that you can take advantage of which will help to save you an incredible amount of money over the course of any business tax year.
- Ownership is easily transferred – Let’s just assume that your new business is a complete success, that you generate significant profits and that you start to hire many more people. There may come a time when you want to branch out further and sell on your current business enterprise. If it is properly registered then this just makes the whole process of selling and transferring ownership a lot easier.
- You can attract the best people – Every business owner knows that you need to surround yourself with the right people so that your business can be a complete success. In order to be able to attract the best people for the job, your business needs to be registered so that it can offer benefits to people that you really want to hire with regard to things like stock options for example.
- It helps to protect your brand – Your brand is everything in today’s world, so imagine working for five years building up a reputation that is second to none and then someone swoops in and steals the name of your business right from under your nose. This is entirely possible if your business is not properly registered and so this is something that you need to put into place as soon as possible.
Every business is unique and so you need to reach out to the professionals to make sure that all processes have been followed so that your business is properly registered and legal. Nobody expects you to understand how everything is done here in China and so rather than stressing yourself out and spending countless hours figuring out how to do it all, it makes a lot more sense to concentrate on your new business and leave all of the business registration up to the people who know exactly what they’re doing at any given time. You know it makes sense, so put it in place today.
