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Q: I want to open my own language traing center in China.

I have a Chinese friend who is fluent in English. It will be a partnership so I would not be a foreign teacher. That eliminates having to be open at least one year to "hire a foreign teacher". We have a name, city and district chosen. We have course material and fees thought out. We even have students lined up! Our problem is conflicting information. I would like to know: 1. F-visa and residence permit costs, 2. business registration costs, 3.minimum startup capital and so on. I'm hoping to hear from the multitude of helpful folks here soon. Thanks for your time and advice.

5 years 50 weeks ago in  Business & Jobs - Other cities

 
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Each Province, or even each city, will have its own regulations. Getting opinions is not the best choice for starting a business on foreign soil. If I were doing what you are planning to do I would ask my Chinese friend to get the answers from the officials in the city/district/province you chose. I also thought of the same idea you have. We did a Performa. My Chinese friend liked the idea. His income would rise exponentially.  I didn't like the numbers because they were too revenue neutral. I thought this was too risky because of the legal environment in China.

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5 years 50 weeks ago
 
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If it is an English training school you might want to read your question again surprise but don't feel bad , as your English is better than mine laugh

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5 years 50 weeks ago
 
Posts: 3046

Emperor

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There are a few things you should consider before making a commitment.
First, your Chinese partner will own 51 % by local Law, and you 49 %. So, legally, your Chinese partner can do with the school as he pleases, and you will not have any legal recourse. Then, you must have a Z visa, not an F visa, to be part owner and work in a business in China.
And that creates another problem. The school must have all trhe required permits and licenses in place, and operate for at leasty a year succesfully prior to applying for a license to hire foreigners. And one of the requisites for that license (at least in my city) is to deposit 50,000 yuan minimun to insure payment of foreigner's salary.
Since you do not inform in your question the city you would do this, It is hard to give you capital requirements. But think at least rent, utilities, salaries (Chinese assistant teachers go for 2,000 yuan locally), benefits (must provide room to sleep for local females), etc. Then multiply that for at least 6 months. Add school equipment including computers, TV and DVD player, depending where A/C or heating equipment (or both), and you will see a need for a capital requirement of at least 1/2 million yuan.
Good luck to you.

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5 years 50 weeks ago
 
Posts: 1893

Emperor

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You're about 10 years too late. If you still believe in Santa Claus and unicorns, then go here: http://middlekingdomlife.com/guide/opening-your-own-school-part-one.htm

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5 years 50 weeks ago
 
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Already too many English schools in China and yes, you may have students lined up but they will go somewhere else if you don't be quick and are there enough to butter your bread? I know a school in Dongguan that is foreign owned and run, they are a very small school and the prices are right and they are in a good location but only now (after nearly 2 years) they have begun to make a small profit, it took a year to break even. 

 

Like Sinobear said, you're 10 years too late, the best option right now is a restaurant/cafe selling 80% foreign meals. Chinese are very into eating western these days as their tastes change and they want to spend more on taking their friends out for face, nothing says it better than eating at a western restaurant.

 

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5 years 50 weeks ago
 
Posts: 307

Governor

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Basically you want us to help set up your business. Lazy bastard!

 

Give me a consultancy fee damn it!

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5 years 50 weeks ago
 
Posts: 257

Governor

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I am wondering if anyone has tried opening a English training center by partnering with a public (primary, middle, or senior school). This approach is given as advise on the Middle Kingdome website and on the surface seems quite logical and efficient, but often reality is nothing like what’s laid out on paper.

I am actually going to try pitching my plan to the school next month, but my situation is a bit different from many others since I am the only native English speaker in a city of nearly 500,000. So this should give me a leg up on the comeitition

I would have to think that if I price it correctly without being greedy it should viable. There are a few other training centers here run with entirely Chinese staff all together they have around 1800- 2000 students. So has anyone ever tried partnering with a public school?

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5 years 50 weeks ago
 
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Like Sinobear has said, it is too late in China. Try another country with less competition like Myanmar, a country has recently opened its gates toward the world.

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5 years 50 weeks ago
 
Posts: 152

General

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I also agree that Western Restaurant is good idea. I am helping a friend from Italy open a restaurant together with Chinese partner. Pizza, pasta, rice, coffee, tea. Chinese people are crazy for western restaurants, even many of them cannot make difference between Chinese cook making pasta in Chinese "western" restaurant and Italian cook making pasta in Italian owned restaurant. But it is very important that they take their friends to WESTERN RESTAURANT. How they call it to show respect, not to lose face.

 

About partnership with Chinese people, no contract can protect you. In China, in court foreigner who is right and Chinese who is wrong, always Chinese guy wins. So he can just change documents to be 100% owner and make up something to deport you, so you cannot enter China later.

 

My way is to make Chinese guy make money deposit in neutral country with legal contract which will allow you to take money if he trick you.

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5 years 50 weeks ago
 
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The education reforms in China also make opening a training school in China risky at this time. Training schools may find it difficult to justify their existence due to lack of customers and a glut of Foreign Teachers if English becomes an elective. Your potential market will become smaller as China's economic influence grows. Training centers may look lucrative now but I doubt you will see a good return on your investment if English becomes an Elective in this country.

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5 years 50 weeks ago
 
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