(Source: https://pltfrm.com.cn)
Introduction
Establishing a business in China is more than a regulatory step—it’s a strategic milestone. From legal compliance to operational alignment, the process requires precision, local insight, and forward planning. For overseas brands aiming to go beyond cross-border models, a proper China business setup unlocks long-term control, platform access, and customer trust. This article outlines the key components of a successful setup and how SaaS tools streamline the process.
1. Choose the Right Legal Structure
1.1 WFOE vs. JV vs. Rep Office
Most overseas brands opt for a Wholly Foreign-Owned Enterprise (WFOE) to maintain full control. JVs (joint ventures) may work for heavily regulated industries, while Representative Offices are limited to liaison activities and can’t conduct direct sales.
1.2 Licensing Needs Based on Structure
Each structure has unique compliance requirements—such as the ICP license for internet operations or food import certificates. SaaS-based compliance trackers help monitor submission timelines and renewal obligations.
2. Secure Essential Registrations and Permits
2.1 Business License and Tax Registration
Registering with the Administration for Market Regulation (AMR) and obtaining a tax ID is foundational. Companies also need to enroll in China’s electronic invoicing system to issue official fapiao (invoices).
2.2 ICP and Platform Approvals
To run a website or operate a Mini Program within mainland China, an ICP license is mandatory. SaaS platforms can automate the application tracking and alert you when regulatory status changes.
3. Build a Local Operational Backbone
3.1 Hire and Manage Talent
China’s HR landscape includes mandatory social insurance, probation policies, and local labor laws. SaaS HR platforms like HiBob or Moka help with contract generation, onboarding, and payroll compliance.
3.2 Open Bank and Payment Accounts
Brands must open a local RMB-denominated corporate account and integrate with WeChat Pay and Alipay. Payment gateway SaaS solutions simplify reconciliation, reporting, and cross-border remittance tracking.
4. Launch with Platform-Ready Infrastructure
4.1 E-Commerce Ecosystem Integration
To sell on platforms like Tmall or JD, you’ll need a domestic entity with a valid license, product certifications, and a Chinese warehouse or bonded zone partner. Tmall Partners (TPs) can help, but owning infrastructure reduces cost and increases agility.
4.2 SaaS for Cross-Platform Sync
Connect your WeChat, Douyin, Tmall, and website backend into a single operational hub using SaaS tools—streamlining inventory, customer service, and marketing execution.
Case Study: Outdoor Gear Brand Builds China Entity for Local Operations
An Australian outdoor gear company transitioned from a Tmall Global model to full domestic setup. After establishing a WFOE, they opened a bonded warehouse in Hangzhou, hired a local ops manager, and connected all commerce platforms using a centralized SaaS suite. Their local delivery time improved by 3 days, and conversion rates rose by 37% due to increased consumer trust and faster after-sales service.
Conclusion
Setting up a business in China requires more than paperwork—it demands long-term vision, integrated operations, and local agility. With the right legal framework, partner network, and SaaS infrastructure, overseas brands can establish a fully localized business that scales efficiently in China’s competitive marketplace.
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!
