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Q: How much do i need to start a business in China? Like opening a restaurant.
How much do i need to start a business in shanghai? Like opening a restaurant.how much i need to have at least
12 years 19 weeks ago in Business & Jobs - Shanghai
I know one of the companies I use to work for they gave new managers 10 grand to get started. I would say in Shanghai if you were gonna open up a restaurant you would need at least 10 grand.
With 10 grand (and I assume it is US dollars), you will never open. If you are a foreigner, to legally own a business in China (100 % ownership) you will have to form and register a Wholly Own Foreign Corporation, and to do so you will need a monetary amount deposited at a local bank as the corporate treasure. And if I am not mistaken, minimum amount is 100,000 Rmb (that will be 16,025.64 US d). Then get all permits and regulations, with the corresponding fees and "bribes" involved. Then get the location rented, build or purchase it, with the corresponding costs. And after, decoration inside, furniture, appliances needed, dish wares, flatware, glasses, prepare and print menu, advertising, etc.
And also, do not think you start the process today, and can open tomorrow. As a foreigner, you will be closely watched, an will not be allowed to open until all steps are fully done. Do not be surprised if a year goes by before you can open. This is why it is easier and faster to buy one already opened.
I would say you will need at least from 300,000 to 500,000 Rmb to open a medium size restaurant today. Two years ago you could have opened one for around 100,000 Rmb, maybe around 400 sq meters dinning area.
Xpat.John:
Actually, the amount that you need to deposit as your initial funds varies on the type of business. It can range anywhere from 100k to 3M RMB or more depending on various factors.
Starting a true English school is not possible for foreigner to do as a WFOE. You would need to partner with a Chinese person and they would have to have the controlling interest. Also, you would need to get approved by the Chinese education system and that is incredibly expensive and difficult.
What most companies do is open as a consulting company to get around the local rules. But even then, it is a very expensive proposition. If you don't have tons of local and government connections, then I wouldn't even think about it.
Pogger: I am not a lawyer, I only enjoy learning, read a lot, and apply common sense.
To me, I think the capital requirement will vary depending on what your business purpose will be. But please, do not confuse capital requirements for visa purposes with the ones to set up a WOFC.
Now, TECHEZEE is a local Lawyer, and does this for a living. So, why don't we ask him to clarify for us what are the requirements for capital on a wholly own foreign corporation, and how the amount is determined.
And on a side issue, I myself dislike partners, I always had very bad luck with them. So, I rather go the WOFC route for that reason. You can avoid that with a Chinese partner, but he or she will own 51 % and you 49 %, so technically you will not own the business, and he / she will be your boss legally.
Now, if you were married to a local, and trusted her completely, she could be the Chinese "partner" for you. But protect yourself "legally" if you do, make sure proper documentation is done and signed like a private loan guaranteed by her so called 51 % investment in your business.
HappyExPat:
Pogger: Thanks, but be very careful. A 51 % ownership is equivalent to "full ownership" in Chinese mind.
depends on where you live bribe can be different based on region you live.
I'll get back to this one today, no time to actually get into the minute details on this one
you can contact someone, especially a foreigner ,and experience person so you will get some better ideas from them and who are already in this business
It will depends on where to open and what size it will be.
