We’ve blogged about professional English-Chinese and Chinese-English corporate translation, certified translation and English-Chinese and Chinese-English corporate interpretation services when doing business in the US and in China. As many Western companies turn to China as a place to expand their market shares, having the right information is essential for succeeding. First, since China is a big country, you need to think of location. Depending on the location you choose, laws and requirements may vary – along with language. So be sure you have your articles of incorporation translated into the correct language of the jurisdiction.
After location, the next step is to decide on the structure. Foreign businesses have four choices: a representative office, a wholly foreign owned enterprise, a joint venture, or a foreign invested commercial enterprise. However, the most common way to enter the Chinese market is via a merger and acquisition, which typically result in either a wholly foreign owned enterprise or a joint venture.
This decision on structure is important, as it not only affects how the business is set up, but also what the business can do. For example, although setting up a representative office is rather easy, you are not allowed to invoice in the Chinese currency, which means you can’t sell directly.
Although this might save on the foreign language translation costs, it severely limits your ability to do business. Once you’re set up, it’s time to do business – with the first step usually hiring employees. Here, all contracts must include a foreign language translation. And companies are advised to pay particular attention to termination clauses and regulations, as corporate documentation along with professional Chinese-English and English-Chinese corporate translation is essential.
Up Next: Contract Translation Services, Multi Language Corporate and Attorney Translation Services