Opening a business in China

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Opening a business in China

Postby rob_the_canuck » 12 Oct 2010, 15:09

Okay, perhaps this was the wrong forum, but it seemed the most appropriate to me.

My wife (a Taiwanese citizen) and I are planning on opening a new branch of our buxiban, but we want to open it in China. Has anyone on the boards opened a school, or any other business for that matter, in China? What was the process like?

As we understand it, you must have a Chinese national as the primary shareholder, with no less than 51% of the shares/stocks. Is that correct? If so, how can you protect yourself from being screwed over should that person decide to start dictating company policy or even sell the business?

We have a friend who has a relative in Beijing that works at a huge ESL school and is willing to meet up with my wife next month to discuss things, but we really don't want to work in Beijing. Any other recommendations for locations?

Any advice/info would be much appreciated, thanks.
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Re: Opening a business in China

Postby michaelcrace » 21 Oct 2010, 15:14

You are being to much like a Canadian. If you want a school go for it. The Chinese like to make money and if it is a English school they need you. Owning shares and stocks mean nothing to them anyway. If 49-51 worries you don't do anything because that will be the least of your worries. I would go to WuHan. Very technical and industrial place with believe it or not a real love for French Food. I guess 100's of years ago the French had a trading post in WuHan and got everyone into French Cooking.
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Re: Opening a business in China

Postby urodacus » 21 Oct 2010, 18:06

Just become a Chinese citizen, then all your moneys belongs to us.

If not, then you'll know you are really successful when you wind up in jail for no reason to be determined.

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Re: Opening a business in China

Postby super_lucky » 21 Oct 2010, 18:24

rob_the_canuck wrote: My wife (a Taiwanese citizen) and I are planning on opening a new branch of our buxiban, but we want to open it in China. Has anyone on the boards opened a school, or any other business for that matter, in China? What was the process like?


The process is maddeningly and simultaneously horrifyingly "Chinese" and I wouldn't recommend it to anyone unless you are related by blood to the national who is going to be on all the official documents.

rob_the_canuck wrote: As we understand it, you must have a Chinese national as the primary shareholder, with no less than 51% of the shares/stocks. Is that correct? If so, how can you protect yourself from being screwed over should that person decide to start dictating company policy or even sell the business?


It's more than just being a shareholder -- the national has to be the point-man, i.e. the "owner" so-to-speak. Unless you trust this person with your life absolutely DO NOT go into business with them. How can you protect yourself? Assume that whoever you're dealing with is going to screw you -- hard. The only way you can get around this is if the gov't literally and officially "invites" you to open a school "for them" wherever that may be. I work for a Taiwanese nat'l who was extended this very same (and super hush-hush) invitation.

rob_the_canuck wrote: We have a friend who has a relative in Beijing that works at a huge ESL school and is willing to meet up with my wife next month to discuss things, but we really don't want to work in Beijing. Any other recommendations for locations?

Any advice/info would be much appreciated, thanks.


As of right now, the gov't in Fujian is making a big push toward English language procurement. Wuhan is also eager for language schools but Wuhan is...a massive pile of steaming shit that fell from the sky and landed in the middle of the hell. You'll want to hang yourself from May to September when the temps routinely hit 40 Celsius with 90% humidity.

P.S. If you want, PM me and I'll gladly recount my experience of (thank God it didn't happen) taking over a string of bars in Zhuhai on Lianhua Lu. Good stuff.
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