Job Discussion Forums

Tasmanian Devil · Joined: 15 Oct 2008 Posts: 39

What are the experiences of those who have gone self-employed in China, either as freelance teachers, editors, or journalists? Do you need a business license of any kind? Do you need a registered business address? Is a PO Box okay? Do you have to have money deposited in a government account?

Anda · Joined: 16 Jan 2003 Posts: 2199 Location: Jiangsu Province

Everything goes through the local party of where you live and work. You think you can do those types of things here in China without speaking Chinese? The Chinese do things for a very small profit margin also and you think you can compete? A Chinese boss would hire one of us monkeys and do these types of things a lot better than one of us could run it without having a lot of experience in China along with connections. Those that make money buy here local and sell overseas and that is about it unless you are top of your field in something other than teaching.

It surprises me that someone who has been in the Middle East for so long would want to come to China.

Tasmanian Devil · Joined: 15 Oct 2008 Posts: 39

Thanks. Why is that surprising? I need a break (R & R) and thought China would be the ideal place.

Anda · Joined: 16 Jan 2003 Posts: 2199 Location: Jiangsu Province

China is alright for such a break and a good university job allows a lot of time off but pay is small so saving are needed or side work if you want to live it up a bit.

China is cheap for anything labour wise like a good medical massage you can get $5 US. Food is cheap along with eating out. A lot depends on where you want to live as big cities big costs and smaller cities smaller costs. I gave an example on a post that got deleted that 500 RMB can get you an apartment in a small cheap city. The same apartment in Shanghai standard wise would cost about 4 to 5.000 RMB a month.

mike w · Posted: Mon Oct 20, 2008 2:45 am Post subject:

The bottom line to your question is that you cannot be legally self-employed in China. You would need a Chinese business partner. Currently in Beijing you would need a minimum of RMB100,000 in a bank account to register a business with your partner.

eddy-cool · Joined: 06 Jul 2008 Posts: 1008

danielb · Joined: 08 Aug 2003 Posts: 490

Mister Al · Joined: 28 Jun 2004 Posts: 840 Location: In there

Business licence and registration fees vary depending on the nature of the business. They also depend on whether the business is a partnership with a Chinese national or a wholly owned foreign enterprise.

I think, but don't quote me, that to set up an English school the fees are in the region of RMB500,000. Probably differs from Province to Province though.

Licences are usually very specific as to what the business can do. Doing business or providing services that are 'outwith' the scope of the licence can result in heavy fines and/or imprisonment.

If the OP is thinking about applying for a business licence he should hire a lawyer or professional in that field.

danielb · Joined: 08 Aug 2003 Posts: 490

The 'fees' are nothing like that much. Do you mean registered capital?

Mister Al · Joined: 28 Jun 2004 Posts: 840 Location: In there

danielb said:

Tasmanian Devil · Joined: 15 Oct 2008 Posts: 39

Mike w, thanks, the 100,000 rmb wouldn't be a problem, that's less than 10,000 quid, and I've been at an international school in Saudi for 8 years and so have a nice nest egg.

Eddie 'cool', I think you need to coolo down a bit. I'll be applying for posts at international schools in and around Shaghai. I will command the same sort of salary I had in Saudai, around 2,500 quid a month tax free. I have already been in contact with some such schools, and first reactions have been positive. However, I may have to wait a year to get a decent post and I want to be able to wait for a good post anyway. So I'll have to be around to scout out decent posts as and when they become available, and also to be able to actually go and look at a campus and meet some students, etc. We are not all TEFL backpackers who turn up at a school 'blind'. Sorry if my working at an international school upsets you, I can't imagine why it should. Perhaps you feel hard done by with your TEFL wage and long for a proper teacher's salary......? And where did you pluck that 500,000 rmb figure from? Out of your own backside? I have been told that it is China, and anything can happen in China when you know the right people and slip the right number of notes to the right person at the right time. 500,000 rmb my left foot!

Thank you, danielb, you are right - the fees are nothing like 500,000 rmb! You mention registered capital. Why would I require that just for a mail order business run from a PO Box?

Anda · Joined: 16 Jan 2003 Posts: 2199 Location: Jiangsu Province

An interesting read on business starting costs for China.
...........................................................................

China's Minimum Registered Capital: How Low Can You Go? - China ...One large part of the problem is minimum registered capital. Chinese law says it must be at least 100000 RMB, which equals roughly $13000. ...
www.chinalawblog.com/2007/08/chinas_registered_capital_how.html - 40k -

Cheap lawyers and China consultants, recommending RMB100,000 investments, are interested in securing their fees to stay in business, not the clients' long term well-being. There is a huge difference in professionalism. Because even in China, you cannot escape basic economics. You either have the money to run your business, or you do not.
For those of you out there looking at opening businesses in China on the cheap - please look beyond the �minimum registered capital amount�. Business is a professional occupation and you need to look at it in a professional light - and truly work out the amount of cashflow you require. Basic economics always has a habit of winning out over investor naivety.

Mister Al · Joined: 28 Jun 2004 Posts: 840 Location: In there

TD wrote:

mike w · Posted: Mon Oct 20, 2008 5:58 am Post subject:

Having been following the other posts from this OP - it is blatantly obvious that no-one can tell him anything. Almost every point that is made in response to his questions is either re-questioned or re-buffed.

We are wasting our time with the TROLL.

arioch36 · Joined: 21 Jan 2003 Posts: 3589

I find it amusing to hear his "expertise" and about knowing "the right people"

It is possible to start with as low as 30,000 RMB (registered capital), but the situation must be government approved

very pertinent article, Anda, thanx

I am hopefully starting a school for severely disabled children, non profit. The government accepted 30,000 RMB as a start up registered capital. A very limited circumstance.
I know someone that started a language school legally. Much much more was needed, .. had to be pledged ... to get the intial paperwork, and I understand that if the money wasn't enough later, his business could be suspended. plan submitted, operating costs, etc were taken ito account