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8 not-to-do things in 2017 in China

February 3rd, 2017 • By: labourxi biz service


Every evening you may probably check what you have done in the whole day and think, and tell yourself don’t do something again later, for example, don’t trust people that easily or spend your money that quickly. The lessons make you lose your money and time, so it’s a good habit to build a list of not-to-do in the New Year.

As a consultant that help foreign people to start the business in China, I have a list for the new comers.

ONE

Don’t register a company rashly, that should be the last thing you need to think about, because it’s much easier than before, some agents can do it free of charge.

The key is that are you sure you are ready? I usually will spend an hour with the visitors in my office, to answer their questions or discuss about the business plan or something, and I persuaded at least 20% of them no to start to set up a company in 2016. Because I don’t think they are ready. I don’t know if they know themselves enough, but I was sure they don’t know China.

Simply put, business venture in China isn’t a game. It’s a brutal war that only for the old soldiers.

TWO

Don’t think it easy to get investment in China. Yes, there are so many investment firms and lots of hot money in China, but forget them until you can prove something, for example, succeed in some areas or rapid growth of the number of customers.

Simply put, there is no typical VC in China who can give hand when you just have a BP.

THREE

Don’t choose the suppliers that can’t provide you VAT invoices. It’s been developed quickly on China’s regulatory system, if you can’t get the right purchase VAT invoices, the tax will kill anyone.

FOUR

Don’t delay all kinds of payment or hide any income in your balance sheet. If you are running short of money, you should have a plan B that can turn things around instead of hoping the business of next month will be good. The fact is, it can’t happen because your situation is a small part of the whole mistake that you shouldn’t have made. The result is that the huge payable tax and fees will knock down your business quickly.

FIVE

Don’t start a business without a deep market research. Once a Moroccan found me via my WeChat, he recommended argan oil as a good business in China. I simply searched in 1688.com and send him a screen shot below. 579 CNY per kg, the price changed his mind I guess.

I’m not saying that it can’t be a good business, the key is how you can sell instead of what you can sell.

Spend 10% time on the necessary research about your product or service, and the rest on how you can sell in China.

SIX

Don’t ignore the new tools such as WeChat. But don’t outsource this part easily because the most of the service providers in this field don’t know your business but to make your pages nicer. A right one should spend time on your company, product, pricing, market and many more, and then give you a workable plan with reasonable schedule to make things happen, to build up a new growth for your sales.

SEVEN

Don’t start to sell when you don’t have enough license. I have African customer who has good cosmetic product. But she made some by herself and sold via WeChat platform, I persuaded her to pull them off, because the product can’t be sold without the official backup in FDA system. Her brand will get hurt if the product will be found by FDA and be forced to pull off one day.

EIGHT

Don’t drink too much coffee, remember you are doing business in China, you need to have more tea with local people that can help you a lot.


Best wishes in 2017!

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Overview of changes of regulations on foreign travel agency investment in China

February 27th, 2016 • By: labourxi company register

As one of the earliest areas opened to overseas investments, travel industrial has achieved remarkable results since the the reform and opening-up policy in China. Certainly, because travel agency is the most important from of the industrial, China has opened the door very cautiously. There were 81 foreign invested travel agencies founded since 1998 in China, 73 of them were founded after China jointed WTO.

With the steps of the opening-up of China’s economy, the related regulations of the foreign investments on travel industrial have been changed almost every two or three years. From example, it’s possible to set up JV travel agency only in several national tourist vacation areas from 1993, up to 2009, the foreign invested travel agency has enjoyed the national treatment, even the Outbound tourism business has been opened in 2011.

Below are the comparisons of the changes of the regulations.

foreign travel agency regulations in China

A travel agency can ben considered as a consulting WFOE, that requests the investor to make a deposit of 200k CNY for service quality. In case a travel agency no longer engages in travel business, it may withdraw the quality deposit from the bank with a voucher issued by the travel administration.

In Shanghai, it’s not necessary to set up it in free trade zone.

Was told by one of my custmoers that there is a small domestic travel consutling company in Shanghai and it has more than 200 inbound tourist customers per month, quite good, what’s more, all the customers have been served by the local people without any certificates. Not trained with knowledge in the books but really grew up where they show to the foreign people. Intersting? Can’t wait to have a travel ageny of your own? It’s time!

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144 hours visa-free police offered from 30th January in China

February 14th, 2016 • By: labourxi visa & employment

144 hours visa-free police offered to the people who is holding the joint ticket with fixed time and seat to the third counties and valid international traveling documentation from the 51 countries from 30th January in the airports in Shanghai, Nanjing and Hangzhou. The passing foreign people can choose to enter or leave from any ports of the sea, land and air in Shanghai, and airports in Nanjing and Hangzhou, they can stay in Shanghai, Jiangsu and Zhejiang province for 144 hours without a visa.

1. Which ports are available to the 144 hours visa-free police?
In Shanghai: Shanghai Pudong International Airport, Hongqiao International Airport, Shanghai Railway Station, Shanghai Port International Passenger Transportation Center, Wusong Kou International cruise port.
In Jiangsu Province: Nanjing Lukou International Airport.
In Zhejiang Province: Hangzhou Xiaoshan International Airport.

2. From which countries can people enjoy the 144 hours visa-free police?
The Schengen Agreement countries in Europe, a total of 24 : Austria, Belgium, the Czech republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland.
The rest of Europe, a total of 13: Russia, the United Kingdom, Ireland, Cyprus, Bulgaria, Romania, Ukraine, Serbia, Croatia, Bosnia and Herzegovina, Montenegro, Albania, Macedonia.
Americas, a total of six: the United States, Canada, Brazil, Mexico, Argentina and Chile.
The Oceania countries, a total of 2: Australia, New Zealand.
The Asian countries, a total of six: South Korea, Japan, Singapore, Brunei, the United Arab Emirates, Qatar.

3. How about the process to apply for the papers of the 144 hours visa-free?
The qualified foreign people need to show the valid travel documents and the joint tickets with fixed time and seat to the third countries in 144 hours to the operators on duty of the transport, when they are going through the formalities abroad in order to go to the ports in the second item above. Then the person in charge of the transport should declare to the immigration station before the applicants arrive. The immigration station will handle formalities after the examination.

4. Where should the applicants handle the formalities who arrive in Shanghai ports?
There are special inspection passages in the entry and exit border inspection area, the qualified foreign passengers can go to the specified channel to handle the formalities.

5. Which are the necessary papers to handle the formalities for the 144 hours visa-free process?
Valid entry-exit document, joint ticket, entry-exit information form filled in advance and the inspection given by the border police.

6. How to calculate time of 144 hours?
Not more than 144 hours from zero ’o clock of the second day after the entry.

7. Is there any fees?
None.

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Company Annual Examination Is Over?

January 29th, 2016 • By: labourxi company register

annual exam
The answer is YES!

The annual inspection system executed in China for long will be put to an end next month. SAIC (State Administration for Industry and Commerce) announced yesterday that the annual inspection process will be ceased from March 1st for the licensed companies as limited liability companies, joint stock companies, legal bodies of private companies, partnership business, individual proprietorship and their branches, foreign enterprises operating activities in China and other operating units.

According to the newly released Reform Plan of the Registration System of Registered Capital by the State Council, the annual inspection system of enterprises will be change

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What is special about non-full-time labor?

November 15th, 2014 • By: labourxi visa & employment

Non-full-time labor refers to a form of labor for which the remuneration is generally calculated on hourly basis, the average working hours of a worker per day shall not be more than four hours and the cumulative working hours per week for the same employer shall not be more than 24 hours.
(1)The form of non-full-time labor insists in employers, but not the individuals. The employer and the non-full-time labor establish labor relationship, which is adjusted by the labor law and the labor contract law.
(2)The pay commissions of non-full-time labor is flexible, generally calculated on hourly basis.
(3)Both parties that use non-full-time labor may sign an oral agreement.
(4)Any worker that conducts non-full-time labor may conclude a labor contract with one employer or more, but no labor contract concluded later may influence the performance of the labor contract concluded previously.
(5)No probation period may be stipulated for non-full-time labor by both parties.
(6)Either of the parties that use non-full-time labor may notify the other party to terminate the labor at any time. When terminating any non-full-time labor, the employer will pay no economic compensation to the worker.
(7)The standards for the remuneration for non-full-time labor on hourly basis shall be no less than the minimum salary rates hourly as prescribed by the people’s government of the region where the employer is situated.
(8)The labor dispaching unit shall not recruit the dispatched laborer in form of non-full-time labor.

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