(Source: https://pltfrm.com.cn)
Introduction
For overseas brands, setting up a business in China is more than a compliance requirement—it’s a strategic move that determines speed, control, and scalability in one of the world’s most complex markets. From regulatory approvals to backend integration, each step of the business setup process directly impacts how quickly and efficiently you can operate. In this article, we walk through the key infrastructure layers needed for a successful China business launch—and how SaaS tools simplify the journey.
1. Legal Entity as the Operational Foundation
1.1 The Wholly Foreign-Owned Enterprise (WFOE) Advantage
The WFOE gives brands full operational autonomy—ideal for those seeking long-term market control, especially across e-commerce, service, or retail. This structure allows you to invoice in RMB, sign local contracts, and directly hire staff.
1.2 SaaS Compliance Support
SaaS legal and compliance trackers help manage application documents, alert you to regional policy updates, and ensure you meet deadlines for tax registration, licensing, and company chops.
2. Build a Locally Compliant Tech and Finance Stack
2.1 Banking, Tax, and E-Invoicing
Opening a Chinese bank account and registering for Golden Tax e-fapiao is mandatory for invoicing and platform settlement. SaaS-enabled accounting tools help you file taxes correctly and reconcile cross-platform revenue sources.
2.2 Payment Gateway Integration
WeChat Pay and Alipay accounts must be connected to a local business license. SaaS payment orchestration platforms automate reconciliation across e-commerce, Mini Programs, and livestream sales.
3. Prepare Your Entity for Talent and Operational Scale
3.1 Payroll, Social Insurance, and Labor Compliance
Onboarding Chinese employees requires legal contracts, insurance contributions, and monthly payroll reports. SaaS HR platforms manage hiring workflows, leave policies, and tax filings while staying compliant with local laws.
3.2 Digital Workforce Enablement
Equip your team with centralized dashboards for marketing, logistics, and performance tracking—ensuring alignment across departments and channels from day one.
4. E-Commerce Platform Enablement
4.1 Platform Verification Readiness
Tmall, JD, and Douyin commerce all require business licenses, brand authorization letters, and payment infrastructure tied to a China entity. Setting up your legal presence first accelerates onboarding and approval.
4.2 SaaS Middleware for Cross-Platform Operations
Once your entity is live, SaaS connectors allow your storefront, customer service, and ad campaigns to run seamlessly across WeChat, Tmall, and Douyin—all from a single command center.
Case Study: Home Goods Brand Completes Entity Setup to Go Multi-Channel
A European home decor brand operated on Tmall Global for two years before committing to a WFOE setup in Guangzhou. With help from SaaS-enabled onboarding services, they completed full legal registration, opened a China bank account, and connected their CRM to WeChat and JD. Post-setup, their customer satisfaction scores improved 2.4x and new platform sales channels contributed to a 60% revenue lift within six months.
Conclusion
Setting up a business in China is a strategic investment in speed, control, and platform eligibility. With the right entity structure, operational systems, and SaaS tools, overseas brands can build the infrastructure to launch, localize, and lead in China’s fast-paced digital economy.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
