China Company Formation: What Opportunities are Available for Offshore Investors?

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China Company Formation

“What can I do to grow my business fast and make it a multinational with an enviable balance sheet?” This is the primary question that many entrepreneurs ask when they look at other multinationals or draw long-term plans. Well, there are a number of strategies that you can adopt, but the best of them all is China company formation. 

For about 30 years, China has become one of the most revered offshore jurisdictions that you can count on for growth because of its supportive administration. With its economic growth averaging 10% per year, this is an excellent point for you to get started. Keep reading for more insights about China and the main business opportunities. 

Table of Contents

China in Numbers

Before looking at the main opportunities that you can undertake in China, what do economic numbers say about this investment destination? Let’s take a closer look: 

  • China adopted economic reforms in 1979, which have helped the economy to become a global business and manufacturing hub. 
  • In 2021, China’s GDP grew by 8.1% after shrinking to 2.3 in 2020 because of COVID-19. 
  • China is the second-largest economy after the United States. In 2021, the country’s GDP was USD17.7 trillion. The World Bank is predicting that China could overtake the US as the biggest economy by 2030. 
  • The service industry is the largest contributor to the Chinese economy, followed by industry. 
  • The population of China is slightly over 1.4 billion people. As a business, you will also be able to access a larger market in the entire Asia-Pacific because China has signed bilateral trade agreements with member countries. 

These numbers indicate a country that is full of potential for your enterprise to exploit. So, are you ready for China company formation? 

Business Opportunities in China 

The first step when considering China company formation is to accurately identify the preferred business opportunities. The good thing is that the opportunities are endless in China, and we are going to highlight some of the best. 

Producing Automation Control Parts 

As the manufacturing sector in China continues growing at a rapid rate, the demand for automaton control-related products is increasing. You might want to start a company for designing these products or source them abroad and supply the targeted markets. Note that most of these products are very specific, and it is crucial to work closely with the targeted clients to drive sales. 

Import and Export Opportunities 

China is the largest manufacturer on the globe today. This presents you with an excellent opportunity to supply the manufacturers with parts or the raw materials they need. You might also want to source the finished products made in China and sell them abroad. 

If you consider China company formation for exports, it can be a highly lucrative niche after winning the trust of clients in different countries. Your company should be able to take orders, source the products from industries, handle logistics, and deliver the cargo to clients. It might appear a lengthy process at first, but it becomes pretty smooth once you are used to it.

Manufacturing Opportunities 

Have you ever wondered why every manufacturer is heading to China? The country offers excellent growth opportunities. Manufacturers in free trade areas (FTAs) pay lower corporate taxes, the raw materials are readily available, and the infrastructure is world-class. You can also venture into manufacturing targeting food processing, industrial parts, pharmaceuticals, medical products, toys, or agricultural equipment. 

This list of opportunities available in China is only a scratch on the surface. There is a lot more than you can do in China. However, the process of China company formation can be challenging because of the long list of required documents and the fact that you need to deal with multiple departments. 

The best way to register a company in China is by working with an agency of experts, such as Primasia. In addition to helping with China company formationPrimasia will also be there to hold your hand when crafting a market entry strategy, carrying out due diligence, payroll management, and accounting.