When people consider expanding their businesses offshore, the most crucial factor is the potential of the selected jurisdiction. Following the disruption of most economies by the COVID-19 pandemic in 2020 and part of 2021, it has been a race for most businesses trying to get back on their feet again. So, if you want to grow faster and surpass pre-COVID-19 success, it is time to consider a jurisdiction with high potential. One of the most outstanding is China.
Before the COVID-19 pandemic struck, China was doing pretty well, and it has now shown good signs of resilience. In 2021, the economy is expected to grow at a high rate of 8.5%. This post will demonstrate why you should not be left behind as others move to form companies in China.
Table of Contents
Understanding the Potential of China
The most notable thing about China is its high population, which you should look at as a potential market for your enterprise. The country has a population of over 1.4 billion people, according to the 2021 estimates. Whether your company is interested in urban or rural people, China has enough market to drive high profits. Other numbers that highlight China’s potential include:
Agriculture, industry and service contribute 7.9%, 40.5%, and 51.6% to the GDP annually, respectively.
China’s GDP per capita in 2021 is estimated at $18,931.
Foreign direct investment by Dec 2017 was $1.523 trillion.
Some of China’s largest trading partners are the US, the EU, South Korea, and India.
Pork is a vital part of the country’s economy with every per capita consuming about 90 grams per day.
The Main Advantage of Company Formation in China
Now that you know about the main numbers that highlight China’s potential, we will now explain the advantages of taking your company there.
China has Made Innovation a Top Priority
To stand out from competing economies, the Chinese administration has made innovation a top priority. For example, the country adopted the mantra “Made in China 2025” and has worked well to promote the manufacturing sector. To do this, it has installed policies that attract foreign investors and helping their enterprises to thrive.
World Class Infrastructure
As you think of China company formation, another impressive attribute is the well-developed infrastructure. The country has a world-class infrastructure that makes product movement, communication, and networking easy. So, whether you want to import raw materials or export finished industrial products from China, the infrastructure makes the process easy and efficient.
Easy Access to the Regional Market
If you thought that the only market available for your company registered in China is China, it is incorrect. In addition to the local market, you also have access to the rest of the ASEAN countries that have signed free trade agreements with China. This means you can easily get more sales and profits after registering a company in China.
Company Formation in China: Why You Should Use an Agency of Experts
The numbers and benefits we have looked at point at a jurisdiction that is very welcoming for investors. So, whether you are planning to open a new firm or expand the home business, China company formation will be an excellent idea. However, you will first need to incorporate it. The best method to incorporate your business in China is using an agency of experts.
With professionals helping with company registration in China, you can develop all the documents well and easily work with different departments as required by company laws. The good thing with professionals is that they also come in handy in helping with strategy formulation and executive functions such as payroll and filing returns.
China is an investment destination that presents foreigners with unique potential for their companies, be they wholly foreign-owned enterprises (WFOE) or joint ventures. Therefore, reach out to a good agency to get the process of registration started and completed fast.
