(Source: https://pltfrm.com.cn)
Introduction
Setting up a legal business in China is more than a bureaucratic process—it’s the foundation for long-term success. For overseas brands, establishing a local entity opens the doors to native e-commerce platforms, advertising channels, tax incentives, and consumer trust. But navigating China’s setup procedures requires clarity, speed, and local compliance. In this article, we break down the critical steps to launching a business legally and operationally in China—with SaaS tools enabling a smoother process.
1. Start with Entity Planning and Location Strategy
1.1 Choose Your City Strategically
Different cities offer different incentives. For instance, Shanghai and Shenzhen are innovation hubs with infrastructure advantages, while Hangzhou offers close access to Alibaba’s e-commerce ecosystem. Free Trade Zones (FTZs) may offer tax or customs benefits.
1.2 Entity Types and Risk Management
Most B2C brands choose a WFOE (Wholly Foreign-Owned Enterprise) for full control. SaaS-driven feasibility assessment tools help compare costs, timelines, and risk exposure based on entity structure and location.
2. Complete Administrative Setup
2.1 Company Registration
This includes name approval, business license issuance, organizational code, tax registration, and opening a corporate bank account. Timelines range from 4–8 weeks depending on region and industry.
2.2 License Compliance by Sector
Some industries—like cosmetics, food, supplements, or education—require special permits (NMPA, CFDA, MOE). SaaS compliance systems track document expiration, submission windows, and sector-specific updates.
3. Build a Localized Workforce and Back Office
3.1 Hiring & Payroll Compliance
Employing staff locally requires labor contracts, social insurance registration, and payroll tax submission. SaaS HR platforms localize onboarding workflows and maintain labor law compliance in real time.
3.2 Financial & Tax Reporting
Businesses in China must file VAT, corporate income tax, and often local surcharges. Using cloud-based accounting software (e.g., Kingdee or Xero China) helps automate filings and manage real-time financial dashboards.
4. Prepare for Platform Onboarding and Execution
4.1 Tmall, JD, and Douyin Access
Domestic platforms require Chinese-registered entities, bank accounts, and brand authorization documentation. With setup complete, you can apply directly or work through TPs (Tmall Partners) for acceleration.
4.2 SaaS Platform Integration
E-commerce SaaS tools sync storefront operations, warehousing, customer service, and marketing activities into one interface, allowing brands to scale across channels efficiently.
Case Study: Premium Beverage Brand Launches Fully Localized China Arm
A Canadian beverage company with prior cross-border sales established a Shanghai WFOE to localize packaging and unlock Tmall domestic channel access. They used a SaaS ERP to centralize operations and worked with a payroll SaaS provider to manage a local team. Their average delivery time dropped by 48 hours, and Tmall sales volume increased 200% in six months post-localization.
Conclusion
Business setup in China is a critical first step—not just for compliance, but for unlocking scale and platform-native growth. With proper planning and SaaS-driven operational tools, overseas brands can navigate the regulatory landscape with confidence and build infrastructure designed for long-term success.
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!
