By launching your offshore company in Hong Kong, you hope to conquer the Chinese market. But how can you achieve this? Are the rules the same as in Europe? What mistakes should you avoid?
Good preparation will help you approach this market with your company more confidently.
Why the Chinese market attracts French entrepreneurs
A very large population
In China, the population reached 1.357 billion in 2013. Although some areas are very poor, there are many potential customers.
A gateway to the Asian market
Reaching the Chinese market also means opening a door to the Asian market, which consists of 4.4 billion people.
Changing consumption patterns
Consumption habits are changing significantly in China, particularly in areas with high GDP.
An attractive tax system
Some jurisdictions offer zero taxation for offshore companies, such as Hong Kong. For other structures, certain taxes are still payable but are described as much lower than in France. There is no VAT in the jurisdiction either.
Significant foreign investment
The country receives a great deal of foreign direct investment, which illustrates the attractiveness of its market.
A very different market from the one you know
Different business relationships
The Asian market, and the Chinese market even more so, operates differently from the European market, even though consumption patterns are becoming more Westernized.
Relationships with local suppliers are not built in the same way as with English or French partners.
A regulation to comply with
China’s legal system is described as advantageous for foreign entrepreneurs but also very strict. It is essential to comply with regulations to avoid mistakes that could complicate relations with the authorities.
Increasingly fierce competition
Great opportunities exist, but competition is becoming increasingly fierce. It is important not to idealize the Chinese market.
Get support when entering the Chinese market
Setting up an offshore company in Hong Kong without understanding how the Chinese market works can lead to costly mistakes. Support may include company formation, opening a bank account, and guidance on the commercial specifics of the Asian market.
The Chinese market differs from the European market, but it offers opportunities that would be a shame to miss out on simply due to a lack of local knowledge.