Everyone, every business is headed to China. In the last two decades, China has emerged as a heaven for investors, as entrepreneurs rush to take advantage of the high-potential market for higher profits.
This is why every big business out there,
specially multinationals, such as Apple and Epson, has a presence in China. In the same way, if you want to grow your business into a global brand, setting it up in China will be a great idea.
One of the common methods of entering and taking advantage of the Chinese market is setting up a joint venture. A joint venture is a type of limited liability company that requires you to enter into a partnership with a Chinese partner. Here is a comprehensive guide to assist you.
The first step, which we consider the most important, is selecting the right partner. Here, you need to comprehensively research the potential candidates to ensure only the best one is selected.
Consider drawing a list of potential partners and analyze each of them based on associated pros and cons. You might also consider setting up a Representative Office (RO) to help you select the preferred partner.
The right partner to form a joint venture with should have ample resources and skills to help your enterprise grow rapidly after establishment. The partner should also have well-established trading networks and access the sectors that you would otherwise find difficult to access.
After selecting the right partner, you need to work together to prepare the required assortment of documents, including the following:
Does the process of setting up a joint venture in China look complex? Most people find it complex, and, therefore, you should consider seeing help from a professional agency.