By continuing you agree to eChinacities's Privacy Policy .
Sign up with Google
Sign up with Facebook
Q: Opening a non-English training school.
I am in the process of doing research on the possibility of opening an IT certification school. However, I am running across many conflicting reports as to whether a Chinese national is required as a partner or not. Does anyone know for sure?
12 years 20 weeks ago in Teaching & Learning - China
To tell you the truth? You wouldn't need a chinese national partner. You can get help from somebody but you don't need them as a partner as in a cut in the business/profit! If your opening a school that's your school and nobody can claim it but you. Just like if you were to invent something you don't need others to claim they invented it along with you.
Xpat.John:
From the sources I have seen, any training license needs to be in a Chinese nationals name. The partnership you setup with that person is up to you, but I am just in the investigative stage right now. And unfortunately, your reputation on this forum makes anything you say subject to automatic skepticism.
mattaya:
I know somebody to open up a training school. And you are right about having some nationals name but as far as a cut in the profit. That's all yours! You make the company you run it like you want to and distribute funds accordingly how you see fit. Laws and Rules usually follow the same code in most places. If a chinese man made an invention in America he doesn't need an American to sign for him. He can do what he wants with it sell it or whatever. If your opening up a school you are seeking an investment which is yours and not anyone else's. If your asking if you have to be partners and be like 50/50 or 30/70 you don't.
"Required" - no. Makes life a lot easier - yes! Consider the BS just with banking... as a foreigner, you can send a maximum of US$500 overseas per day - a local doesn't have that limitation. Compare even just getting a bank account - so much easier to have the local open it for us...
Business... soooooooo much easier with a local!
Xpat.John:
Actually, I have setup WOFE (Wholly Owned Foreign Enterprises) before. The exporting cash rule doesn't have a limit, but there are other hoops you have to jump through to get the cash out. I know that some business types (like car manufacturing for one) require a local partner. But I have heard so very many nightmare stories about Joint Ventures that the very idea makes me cringe.
Shining_brow:
I thought you were married to a Chinese girl?? Why not have her as your partner??
Xpat.John:
I would use my wife for the license, but this is not my venture. I am actually doing the due diligence for a client who is thinking of opening a school here. My wife wants no part of putting her name on a license for someone else's business. If things go bad, it is her that is holding the liability bag.
When you call it a "school", you are gone be required to take the form of JV. But you can make a simply “commercial company” which can take the form of WFOE.
That’s how EF “English First” and the like do it.
This should answer your question!
Xpat.John:
Thank you. I will have to check the limitations & rights of a commercial company. For my client, the cost (financial and otherwise) of a JV might outweigh the cost of the needed WOFE type.
bennyfulltrack:
And when you want to set up such kind of WOFE, there may be some limitations on what kind of place you can have an official address in. Residential buildings may not even cut it. You may need something in a class A building. In general, you may be able to get away with it until the time something comes up and you can't.
Xpat.John:
Every time I have gone for any business license before, they always come out to check the registration address. I know some people will rent a very small office for registration and then run the business out of a cheaper apartment. But for a training school, I don't think that is a feasible option.
I know of a guy in Hong Kong who has done it .
I will try track him down and see what he knows
From what I know it can vary from place to place
hong kong has diffrent rules to the main land
so maybe Shanghai may be diffrent to say Shandong and so on
I would love to know how you go with it
Xpat.John:
I will let you know how it goes. The education laws here in China are very strict, so it is a tricky thing to learn before you get deep into it.
3.6 years ago I opened a private Teaching school in Zhangjiagang. I had two [2] options.
The first was that if it was was to be recognized as a Language school then it would fall into the same category as the Public Schools, and therefore be subject to many local government inspections, health and safety, educational materials, layout and progress agenda , insurances , and taxes along with all the usual bureaucracy of company registration. The second option was very basic, register an Educational Consultancy Company, [ just call it anything other than a school] , which would cost around 500-800 rmb/yuan/quai registration fee's, or better still escorting someone to dinner. I was informed that it is not allowed to have a teaching facility [Classrooms] on or above [8th] floor or higher, for obvious safety reasons building. Seems strange as most homes have barred windows. However good friends in very high places for me made it all a very simple procedure in the end.. I purchased everything new desk's tables, chairs, whiteboards, 2 large LCD screens, and all the required necessary educational stationary and books from Shanghai. And I registered my own private school within hours.
