Why should I choose Stephen MS Lai & Co CPA Ltd?
Stephen Lai entered China Markets, providing consulting services to Chinese people before China joined the World Trade Organization (WTO). Because of this, Stephen MS Lai & Co CPA Ltd has developed reliable and strong professional networks inside China to help with China Company Formation, business opportunities for doing business in China, opening bank accounts in China and much more. Stephen has seen and adapted practices with what has changed in the whole China for decades.
Stephen Lai has practiced as a professional accountant since 2007 and major in helping overseas businessmen over the world to expand their business and create opportunities of doing business in China and Hong Kong, helping them to setup companies and bank accounts in H.K and China. Also providing legal and tax consulting services to them, and helping them with other business support including business disputes.
Stephen Lai’s practice has now setup office in the UK for Hong Kong and China company registration services and now has a practicing license from Association of Chartered Certified Accountants (ACCA was Founded in 1904, ACCA is the global professional accounting body offering the Chartered Certified Accountant qualification ACCA or FCCA). Stephen Lai was invited to become FCCA in 2008.) This is only the ACCA who granted Mr. Stephen Lai and allowed him to provide professional services in Hong Kong and China for overseas businessmen.
What you need to consider when thinking of possible opportunities of doing business in China and marketing companies in China before your China Company Formation.
If you do such searches like “Online Marketing China,” “China market entry” or “marketing strategy China” you will find some Chinese marketing companies who claim they can help you to expand your markets into China. Yes, sure they can, but it’s important to know:
Only Chinese who have Chinese I.D or Chinese company license(s) can register to Baidu Adwords, RenRen (RÉN RÉN) + Douban (DÒU BÀN), RenRen Adv (RÉN RÉN), YouKu Tudou (YŌUKÙ TǓDÒU), YouKu Tudou Adv (YŌUKÙ TǓDÒU), Taobao + Tmall and Weibo (WĒIBÓ) and DianPing (DÀ ZHÒNG DIǍN PÍNG).
That means more likely the market strategy they will use in China will be to PAY the Chinese people to use a Chinese I.D (which is the common one) or ask them to register a Chinese Company, then register Baidu Adwords, RenRen (RÉN RÉN) + Douban (DÒU BÀN), RenRen Adv (RÉN RÉN), YouKu Tudou (YŌUKÙ TǓDÒU), YouKu Tudou Adv (YŌUKÙ TǓDÒU), Taobao + Tmall and Weibo (WĒIBÓ) and DianPing (DÀ ZHÒNG DIǍN PÍNG). After that they will open Chinese bank accounts under company name (but the director and shareholder is under a Chinese person) or they will ask a Chinese person to open a personal bank account.
Once they have registered it for you and promoted your products or services through Chinese shopping online etc., When Chinese people search your products or services, they will know the products or services are provided by Chinese companies instead of Overseas companies.
Even they know that you, as an overseas company will arrange for Chinese people to register shopping engines for you, suppose if they do believe. In case there are some disputes, they will not pay you. The importance is that you have no legal rights to claim your products or services back, as from the beginning you made a mistake entering the Chinese market.
Chinese law has no such trust law, like … For the trust, we provide a trust scheme that we provide nominee director and nominee shareholder and will prepare two documents, a trust agreement and the power of attorney. In the trust agreement, we will declare that we act as trustee and hold the shares for you as a beneficiary and make it stamped so that it takes legal effect. In the POA, we will sign back to you the powers of the director so that you can sign all agreements, contracts for the company. Trust Law is void in China.
The result is that you need to pay huge marketing investments to such Chinese marketing companies, as they provide Chinese marketing services to you. However, once the marketing goes well and you start to have client enquires, you may have a risk of your marketing efforts being taken over by them without your permission. As on your part, it is illegal to setup such a structure to enter the China markets. I have seen many such cases over recent years. This is a reason why I have settled in the UK, and now help overseas businessmen to expand to the Chinese markets.
We are not saying all Chinese marketing companies are trustless, you may find one who is trustful, if so you are very lucky. If they are trustful, how do they know how to setup companies in HK or China for you, and open bank accounts for you in HK or China. How can they help you to solve out practical issues in additional of marketing matters in China, like tax issues in China, and your own countries, etc.
Suppose you do find someone who can provide all the above. That is all well and good, but you need to know in the future how to get your money return back into your home country.
You will have signed a marketing agreement and the Chinese marketing company will help you to launch into Chinese shopping engines;
You will pay nominee fees for you Company incorporation setup in China, and open Chinese bank account;
You will pay Online Marketing Management fees (for months or possibly years);
As clients pay fees directly to the Chinese nominee bank accounts, they will charge for fees like monthly accountings, quarterly tax filing, VAT filings, and yearly auditing, and yearly tax filings. You will receive a lot of bills, and you will be forced to pay and deduct from the local nominee bank accounts, including all the tax payments in china;
Suppose you make a lot of profit, and a lot of the money is still kept in the bank. As the company is a local company, you are not allowed to remit money outside China. It is also impractical to withdraw all cash from the bank (as the bank will restrict you to withdraw cash, the bank only allows to do payment by wire transfer inside China or cheques inside China).
So, it is better to ask more or know more before you find Chinese marketing companies to do marketing for your overseas products or services.