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Setting up of company in China

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justinng77
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Setting up of company in China

Postby justinng77 » Thu, 17 Apr 2008 5:52 pm

Dear all,

I'm planning to setup a employment agency in China and I would like to inquire on the procedure and process of obtaining the license to do so.

Appreciate if you could direct me to the relevant authorities or shed me some lights :)

Thanks for the input in advance!

Rgds,
Justin

justinng77
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Postby justinng77 » Thu, 17 Apr 2008 5:55 pm

Just realized i've posted in the wrong section but i can't find the right section to post this. Appreciate your help. Thanks.

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QRM
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Postby QRM » Thu, 17 Apr 2008 6:51 pm

Singapore is not in China? I am always surprised by how many people think it is.

Maybe a China forum would be better?

Before trying any venture in China you shoud read the very funny and scary book "Mr.China" by Tim Clissold. Its a first hand account of his experience trying to work western business practices in a totally alien environmet.

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ksl
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Postby ksl » Thu, 17 Apr 2008 10:07 pm

You must be very rich or very stupid......either way, you will probably loose out, the place is far too corrupt for small businesses to survive.

I can tell you, of many Taiwanese, that have had their fingers Chine.

Even my father in law who is Taiwanese had then shock of his life, when he purcahsed a property for his son, in China, only to find out that his wife family, somehow, transfered it into their names....

Nothing is safe there, so unless you are lucky enough to meet the right networking partners, I would stay well away, from it.

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Postby MikeDirnt » Sat, 19 Apr 2008 3:54 am

ksl wrote:You must be very rich or very stupid......either way, you will probably loose out, the place is far too corrupt for small businesses to survive.

i see that as a crude statement and biased opinion of yours.

i dont see anything wrong with the question asked. im sure someone who has an experience doing business in China can help.
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ksl
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Postby ksl » Sat, 19 Apr 2008 1:10 pm

MikeDirnt wrote:
ksl wrote:You must be very rich or very stupid......either way, you will probably loose out, the place is far too corrupt for small businesses to survive.

i see that as a crude statement and biased opinion of yours.

i dont see anything wrong with the question asked. im sure someone who has an experience doing business in China can help.


Ooops yes I suppose it did come out abit too fast! Basically what I'm saying and I do know for a fact, that business survival is a much higher risk in China, than any where else in the emerging markets.

Biased not at all, business acumen and awareness is high priority, it doesn't help anyone at all, to think they can just take a trip to China, and set up business, without suffering, the risks!

http://www.chinabusinessreview.com/publ ... atton.html

I can imagine your feelings, although it's more important, to not let emotions get involved, with good old common sense!

Any person with money to lose, will most certainly lose it in quick double time, if they are not ware (street wise) and yes, it can happen everywhere....the only problem with that, is the motivational factors of the Chinese to take your money, and knowledge is a survival instinct, much more finely tuned, than any Singaporean, or even Taiwanese....

Corruption is not easy to be identified, as a way of life, when you need things done in double quick time, there are several routes to take, and sometimes you will not have a choice, call it technical hindrances, or whatever you want...the fact remains, that business is very difficult, without paying the price. :wink:

Even though China have come along way since the early 90's, it's not a place for the unsuspecting :roll:

Maybe you should try visiting your own countries chamber of commerce, for a little eduction, on the norm in China and the risks.
670,000 CCP members have been disciplined, and more than 120,000 people expelled from the Party, including former Beijing Party chief Chen Xitong. China has also recently executed some officials found guilty of bribery. China's attractiveness to foreign investors fades in such a light. Nor does President Jiang's assertion that corruption threatens "the very existence of the Party and State" inspire confidence.
The immence size of China, is enough to indicate, that the problems cannot be resolved in one decade!

And for the kiddnaping scene, maybe a small amount when compared to the business setups, however the risks are there.
http://www.thestandard.com.hk/weekend_n ... r=20060121

My other experince is that i do have Chinese family members on the mainland and in Taiwan, several in the manufacturing business, and I don't mean selling badges and clothes on push carts.....it's all about guanxi and if you don't have it, then you are at a higher risk of failure.

I also have a few influential connection in China, and believe me, I have seen the power of pulling rank by high positioned people, and I have been privileged, to have been invited into The Forbidden City after it was closed to the public, to experience the solitude!

I have a great deal of interest in China and studied at http://www.blcu.edu.cn/blcuweb/english/index-en.asp

So i am by no means biased or crude, it's reality for those that experience culture at all levels of society and i have mixed, with the illegal money changers back in the 90's who needed the US$ for by buying western goods, to the high ranking cadre profiles.

I probably know more, than many of the mainland Chinese know, about their own Country!

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Re: Setting up of company in China

Postby kaseyma » Sat, 19 Apr 2008 3:45 pm

justinng77 wrote:Dear all,

I'm planning to setup a employment agency in China and I would like to inquire on the procedure and process of obtaining the license to do so.

Appreciate if you could direct me to the relevant authorities or shed me some lights :)

Thanks for the input in advance!

Rgds,
Justin

What ksl wrote is not an exaggeration.

You should ask yourself some basic questions, like:
Why do you think you will succeed with an employment agency in China?
What do you have to offer that is not already in China?

Finding people employment or finding employment for companies requires contacts.
If you had a good, relevant contact base I wouldn't expect you to be seeking advice from a Singapore expat website.

There are expat sites in China that have people who have set up businesses (e.g. shanghaiexpat, shanghaiist, etc.).
You may get some answers about where to get info and what to do, but you will also get many more warnings like those given above.

If you do insist on proceeding, I would hope that you speak decent Mandarin with a proper Chinese accent.
You will need it to deal with various people and agencies needed to set-up a small business.

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Postby Winxkid » Mon, 21 Apr 2008 9:57 pm

I believe We should not doubt Justin's business acumen. Some made it big, some don't. That's business :D
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ksl
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Postby ksl » Mon, 21 Apr 2008 11:42 pm

Winxkid wrote:I believe We should not doubt Justin's business acumen. Some made it big, some don't. That's business :D


There is some truth in that, although the idea is, to minimise your risk, by seeking help from those with experience...That is why they have chambers of commerce and trade offices, research and knowledge from those actively involved in China cannot be ignored.

There is no doubt, that Justin is better off knowing what to be aware of, than not knowing, what to be aware of and to think, he gets the advice free, much better than paying 200$ an hour to hear the same!

Export consultants, normally specialise in their field of expertise, and the emerging markets they wish to operate in, are thoroughly investigated, with Country profiles, and market intelligence, businessmen do their business, and normally when they wish to expand into other Countries, they seek professional help, through people like me.

Who had paid the extra 6500 pound sterling 1980 rates, for 16 weeks live in course at the Export Academy...There is a terrific amount of data available for potential businesses wanting to export or setup in a foreign Country, if one requests, the professional help.

http://www.iesingapore.gov.sg/wps/portal

It's there speciality to be up to date, on International Trade and market data, it doesn't come cheap, i can tell you that!

Professionals to be honest, wouldn't do half the silly mistakes, that Asian businesses make today, especially at international trade shows.

A little example comes to mind, because I am representing a Company for a week, so they present me with my business card...which is correct in Chinese, as a senior manager, yet the English title is exclusive manager, and I'm still scratching my head...

These are big businesses, that make very silly errors at very important international trade exhibitions. They make the same errors with advertising material in Singlish, or SMS language or English that has been translated online and sent to the printers.

I mean you just do not present, material to international tradesmen, unless it's correct, and understandable, and the reason is quite simple to understand...If a businessman is not bothered about is advertising, he can hardly be bothered about the products he's trying to sell.

For what it costs, to send translation to be done correctly, is so little, when compared to the amount of trade lost, because professionals, believe the companies are to sloppy, lack discipline, and order to present their products, how, can they care about customer service and RMA, if you do the job right, you are likely to succeed...

So the truth is, those, that help themselves, to minimise errors in business, live a little longer, if your good, your good, and if you are bad, you lose everything. Another thing people don't take to seriously is their competition, one should never underestimate the competition, they maybe better prepared, than yourself. :wink:

At the end of the day, one makes judgement on the data at hand, one must ensure the data, is verified. That's just good advice, and its free, so Justin I believe is very lucky to get free advice, it gives him something to consider and act on, if he wants.

His first step, must be, to get the information verified! :) to give himself peace of mind!

Constructive criticism is worth its weight in gold, however many misunderstand the point!

I often say to people, why did you do that, when you know the procedure, I get critisized myself for being a perfectionist, although i am a long way off being a perfectionist, I stick by the book, as much as possible to avoid errors, because there are too many rules, one cannot remember them all.

So a check list is very important, to jog the memory! (especially in old age) :cry:

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belle1980
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Postby belle1980 » Sun, 04 May 2008 12:08 am

if justin still want to set up company of china

i can help you find some information.

i dont know why Some others say so much about china not good in business.

if you are good, you have fully planing, why not try?
Just one moment can change everything!!!

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maneo
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Postby maneo » Sun, 04 May 2008 4:42 pm

Chinese looove Singaporean money.
Suzhou Industrial Park ring a bell?
No one is "safe."

You may think you have business acumen.
China (and Shanghai in particular) certainly will be the test that tells you whether you are right or not.

Heed the warnings.
The pollyanas obviously haven't tried.
Prepare well if you still want to give it a go.

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ksl
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Postby ksl » Sun, 04 May 2008 7:02 pm

belle1980 wrote:if justin still want to set up company of china

i can help you find some information.

i dont know why Some others say so much about china not good in business.

if you are good, you have fully planing, why not try?


Here you are Justin, your first test! :roll: It opens just like a book. If Belle1980 isn't mainland Chinese, I'll eat my hat! :lol:


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