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Gateway to the China Business Market-How to Set Up Branches

How to set up branches?

Where to set up branches depends upon the following considerations:

The ability to hire personnel experienced in your industry, with the skills your industry may require; easier access to support industries and suppliers; and customer expectations. Ease and cost of transportation, wage rates, and proximity to key customers. Weigh all these factors and any others that are important to you before determining the area in which to locate.

Be sure to check the reputation of the government in the zone that you might choose. Some are much more helpful and flexible than others. Plan your strategy and priorities up front, ideally with someone experienced in this process. Set up, with access to enough funds to pay for whatever fees you will need. Establishing a representative office gives a company increased control over a dedicated sales force and permits greater utilization of its specialized technical expertise. The cost of supporting a modest representative office ranges from $250,000 to $500,000 per year, depending on its size and how it is staffed. The largest expenses are office rental, personnel housing rents, expatriate salaries, and benefits.

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