How to Establish a Successful Trading Company in China
Establishing a Foreign Investment Commercial Enterprise (FICE) in China When an international company reaches a certain level of success in selling or trading with China, or simply wants a physical presence in the country, it’s common to establish a trading company in the form of a Foreign Investment Commercial Enterprise (FICE). Permitted FICE Activities: Covered Scope:FICE refers to a foreign investment enterprise engaged in: Retail: Selling goods from fixed locations or via television, phone, mail, internet, and vending machines. Wholesale: Selling goods to retailers, industrial and commercial customers, and other wholesalers. Franchising: Licensing the use of trademarks, trade names, and operational models in exchange for royalties or franchise fees. Commission Agency Activities: Working as a sales agent, broker, or auctioneer for goods. Basic Requirements for Establishment:Foreign investors must meet the following criteria: Restrictions:Restrictions apply to FICE dealing in specific products like books, periodicals, newspapers, pharmaceutical products, and agricultural chemicals. Operating Duration:FICE operating duration should generally not exceed 30 years, while FICE established in central and western regions should generally not exceed 40 years. Required Application Documents: