Legal & Regulatory
The foundation for doing business in China is a proper legal set-up, secured IP rights, as well as Chinese certifications and product registrations. No activities should be initiated in China before basic intellectual property rights are protected. The proof of ownership of your trademark is a prerequisite for almost every e-commerce sales channel, retail sale, as well as import into China. Trademarks are fairly easy to secure if they are not yet registered by another legal entity. It takes approximately 3 months to get the initial approval – and about 1.5 years to get the final approval.
Establishing a company in China is both complex, costly, and time-consuming. We recommend foreign companies to consider it carefully before venturing into setting up a legal entity in China. There are many options available for selling to and within China without a legal set-up; through distributors, cross-border ecommerce, or by using Knudsen&Co’s China Sales Hosting solution. Based on our experience, a testing period of market and consumer behavior can prove very valuable for companies considering entering into China.
There are several different company registration classifications for foreign companies doing business in China. Your strategy will decide which classification best suits your needs. We have established over 100 companies in China and will ensure that you get the optimal establishment from your business perspective. A number of things will be locked-in at the time of registration: for example the location you are going to operate from, and the types of business you can be involved in. Careful consideration from the outset will save you time and money trying to amend registrations later on.
Depending on the industry you are in, certain certifications and government approvals of your products are required. Without the right certifications, it is not possible for the products to enter China. China may have different requirements compared to those in your local market. For some product categories, to obtain the certification you may be required to modify your products and have your factory certified as well. For other product categories the certification process can be done in a simple way. Knudsen&Co will guide you to understand the specific requirements and plan for the optimal certification strategy. Knudsen&Co will also secure the actual certifications and government approvals.
All in all; China presents some great market opportunities for companies looking to grow overseas, but managing the intricacies of the country’s business regulations can become a growing headache. Understanding the rules that apply to your company will let you stay one step ahead and avoid major issues for noncompliance.