Launching Online Business in China

Since 5 years ago, the one belt and one road proposed by China government that e-commerce and cross-border electronic commerce are promoting the establishment of free trade zones and expanding economic and trade exchanges between relevant countries, online business as the new ecosphere plays a very active role. Most foreign brands are bringing their ideas and creative products to China market through establishing Chinese online e-commerce platforms and payment tools. Don not need to deny that online business is the most effective way and the most economical channel to develop the Chinese market.

If you are sounding out feedback from local customers, you can set up a trading company or international business to open various e-commerce platforms and apply for payment tools under corporate bank account. SMEsChina teams assist global entrepreneurs to launch an online business in China market by simply and easily procedure.

According to the regulations on different online e-commerce platforms, you should register a local business entity and obtain a corporate bank account first, then you have to ask these Chinese online operators if need other requirements to open online shops. Such as Tmall needs Chinese trademarks, JD needs qualification of the general taxpayer ( known as VAT ), and other requirements depending on product details.

Step 1. Company Formation

1). Approval name for your management corporation
2). Prepare requirements and documents to verify
3). Obtain an official business license, company seals, learn more: How to obtain a certificate of business incorporation

Step 2. Corporate Account

1). Submitting of application forms, and corporate files
2). Obtain an approval and issue an account details
3). Apply for an internet banking service and password

Step 3. Online Shops

1). Apply for the qualification of corporate taxpayer
2). Apply for online platforms and payment tools
3). Start businesses and operate online shops

During the process, you have to decide basic conditions and prepare related documents of requirements to verify your authenticity and legality, all legal files and register information will be identified and approved by local market and supervision department ( know as industrial and commercial administration bureau ).

1. Basic conditions

Conditions means you have to set up corporate basic structure for key positions, include:

1). Who will be the shareholder(s), known as owner(s), or investor(s).
2). Who will be the legal representative ( know as executive director ), appointed by shareholder(s).
3). Who will be the supervisor, this position can not be legal person, appointed by shareholder(s).
4). Who will be the financial manager, appointed by shareholder(s).

2. Required documents

You have to prepare required files for 4 positions to submit verification.

1). Shareholder(s) can be individual(s) or existed enterprise(s), from domestic or oversea.
2). Legal representative, supervisor, no nationality restrictions. Financial manager must be a Chinese citizen.
3). Four positions must provide required documents, you can use this link <documents required to register a company> to collect and prepare.

Learn more: Company Incorporation of Non Residents

Due to the cultural difference on the description of business activities, here SMEsChina has listed a standard list a page ( Selecting Business Scope ) for your reference, you may select your details products and relevant services to submit local register departments to obtain approval.

About the chosen rules, you can select business activities from multiple industry options. For example, if you select cleaning equipment as product to launch online business, also you can select relevant technology services as after sales services.

Domestic online business, standard register process needs 20 working days, if you have prepared all required documents.

Cross border e-commerce business, needs additional process to apply for import and export permits with another 10 working days. Business scope must include import and export business.

Here SMEsChina lists some popular Chinese online platforms with different additional requirements, after your Chinese company approved, you should refer to these information to operate online e-commerce business ( B2B, B2C ) quickly and smoothly. Due to the specific requirements for different products, so suggest you consulting SMEsChina teams to get more details.

Taobao Corporate Shop:

1). Business license
2). Corporate account details
3). ID copy of legal representative
4). Letter of authorization of shop
5). Others, none
6). Payment tool, Alipay

Wechat Business Shop

1). Business license
2). Corporate account details
3). ID copy of legal representative
4). Enterprise account verification
5). Approved by the 3rd Party
6). Pay off platform service fee

Tmall Online Shop

1). Registered capital >= 1 million RMB
2). Corporate establishment > 2 years
3). General taxpayer qualification ( VAT )
4). Trademark(s) registered more than 2 years
5). Import records within 1 year
6). Payment tool, Alipay

YHD Online Shop

1). Business license
2). Corporate account details
3). Trademarks
4). Platform fee, 650RMB/month
5). Brands authorizing
6). Quality reports

Alibaba / 1688

1). Business license
2). Corporate account details
3). ID copy of legal representative
4). Letter of authorization of shop
5). Others, none
6). Payment tool, Alipay

Amazon CN

1). Business license
2). Corporate account details
3). ID copy of legal representative
4). Brand’s qualification
5). Goods declaration of import
6). Production certificate

JD Online Shop

1). Business license
2). Corporate account details
3). Trademarks
4). General taxpayer ( VAT )
5). Registered capital >=500K RMB
6). Brands authorizing
7). Quality reports

AliExpress Shop

1). Business license
2). Corporate account details
3). ID copy of legal representative
4). Letter of authorization of shop
5). Staff more than 30,On-site audit
6). The 3rd party inspection reports
7). ID copy of legal representative

Payment Tool – Alipay

1). Business license
2). Corporate account details
3). ID copy of legal representative
4). Enterprise account verification

Payment Tool – Wechat

1). Business license
2). Corporate account details
3). ID copy of legal representative
4). Enterprise account verification

How to get started step by step. If you have already prepared all required documents and other things you have to set up an online e-commerce company in mainland China. Whole procedure completed within 20 – 30 working days by SMEsChina’s comfortable assistance and online guidance.

In addition, all required documents can be collected and signed in your home country, SMEsChina has great relationships with local register department offices, you do not need to come here in person to interview.

A series of subsequent value-added services can help you to expand and grow online businesses smoothly.

Look for a registered address, this is a simple question, if you plan to rent a physical office in China, you can use it as registered address. Another cheaper way, you may contact SMEsChina to provide a virtual commercial office address to obtain an approval of business registration. learn more: Reasons of Using a Virtual Address

Standard corporate structure, your company can be as, WFOE ( wholly foreign owned enterprise ), FICE ( foreign invested commercial enterprise ), JV ( joint venture business ), LLP ( limited liability partnership ) or other structure of company depending on your structure of shareholder(s). Learn more: Corporate Structure of Company

Investment Capital, the minimum registered capital is 20,000 USD or Euro for a Chinese business. Shareholder(s) can inject the capital within 30 years once corporation approved. Learn more: Company Registered Capital

Incomes, trading industries can receive payments from Chinese customers ( local market ) and other countries ( oversea incomes ). Customers can be individuals and enterprises, and other organizations.

Value-added services for e-commerce businesses

Corporate bank account, one-on-one full services providing account opening and internet banking setting up though SMEsChina accountants department, and help you opening online payment tools.

Secretarial services, assisting corporations to register local trademarks and bar codes, also providing mails and letters forward services. Through our services help more foreign brands launching online businesses with simply and smoothly.

Market opportunities, whatever businesses you look forward to expand in Chinese market, China is a huge market and attracting more and more small business management enterprises to be here to set up companies with simply and quickly process of establishment. Learn more: Market Access Strategy

Residence permits, once you own a local enterprise, you can hire foreign staff and obtain working visa and resident permits. And your China corporation can issue an invitation letter to foreign staff from immigration office easily.

Online marketing, a number of foreign business entities are choosing to deliver advertising in Chinese platforms through local existed corporations, as the largest e-commerce market, online marketing is the the most effective approach to get focus. A Chinese company, can open and register online market platforms ( such as JD, T mall, Taobao, Amazon, Alibaba, etc. ) and payment tools ( such as wechat, alipay ) easily and quickly ( you must be approved to obtain local business license and corporate bank account ).

Get help, deciding to set up a business in China

If you are hesitating that if this industrial guidance is right for your purpose, or you are considering other business plannings, you may use this useful link getting more reference. If you wish, you may get in touch with SMEsChina online teams directly.

SMEsChina offers a wide range of corporations services through the years of practical experience in areas of company formation, license application, tax consultation, annual audit, government inspection, virtual office services, human resources, secretarial management services, online marketing strategies, residential visa, registration of bar-codes and trademarks, and other solutions of corporate running and maintaining to our global customers.

Learn more: How to Open a Trading Company Step-by-Step

Ready to launch your online business in mainland China? So are we.