Driven by the globalization of the world’s economy, more foreign investors are now setting their sights on China. This chapter provides basic knowledge on tax and legal matters required for a start-up, as well as the supporting policies that foreign companies can benefit from in China. Our aim is to help foreign investors more easily integrate into the

entrepreneurial environment in China and galvanize the growth of their companies.

Tax knowledge is essential for the proper management of a company. Even before a business officially begins its operations, the company already needs to deal with issues such as tax declaration and payment, for transactions including the leasing or purchase of an office. If handled

improperly, these issues may result in legal disputes. This section will cover some general tax knowledge, including the three most common taxes in China. Some frequently asked tax-related questions will also be addressed, with a list of well-known financial outsourcing companies in Shenzhen provided for your reference.

Before launching the operations of a company, it is necessary to acquire some legal knowledge to avoid exposing your enterprise to risks. On this occasion, William has received advice from professional start-up consultant

EG from Start-Up Guide on the legal aspects of tax, HR recruitment and business operations. Some common issues were addressed and solutions suggested, with a list of well-known law firms in Shenzhen provided. Issues regarding the registration of intellectual property rights were also covered.

Shenzhen is known as the “City for Start-Ups” in China. According to the data provided by the Data Center of the Market and Quality Supervision Commission of Shenzhen Municipality, the number of registered enterprises in Shenzhen as of 2017 exceeded 1.76 million, which was 260,000 more than 1.5 million as of 2016. That is more than 700 new enterprises being registered and established in Shenzhen every day. At the same time, the Shenzhen Human Resources and Social Security Bureau is also actively promoting policies that support new enterprises.

The aim of this chapter is to provide a better practical guide for foreign entrepreneurs in Shenzhen and to create an “obstacle-free entrepreneurial experience in Shenzhen.” Professional start-up consultant EG from Start-Up Guide will start from industrial and commercial registration (application for company business license), foreign investment information report filling, seal carving, corporate bank account opening, etc, and go over the relevant processes and lists of documents required for establishing a foreign-invested limited liability company in Shenzhen, as

well as highlighting the key things to take note of for each stage.

After obtaining licenses for the company, the next order of business is employee recruitment. Issues such as how to apply for employee work visas or even permanent residence applications (immigration) need to be considered. Professional start-up consultant EG from Start-Up Guide

provides some detailed answers covering the types of visas available to foreigners, visa application process, address and contact details of the application center for foreigner’s work permit, and the requirements, process and fee rates for immigration applications.

Around the world, mass innovation spaces, business incubators and co-working spaces have become the preferred choice of workplace for entrepreneurs and innovative start-ups. Shenzhen is no exception. There are currently 47 mass innovation spaces, 500 business incubators and 60 co-working space operators in Shenzhen. Different work spaces offer their own unique set of services to help entrepreneurs grow more productively.

Having chosen your office location, the next step would be to recruit the members of your team. Professional start-up consultant EG from Start-Up Guide explains to David that in addition to the common online job platforms and career fairs, there are also other channels such as WeChat friend groups, offline public events, or entrepreneurs’ communities that provide opportunities for recruiting talents in China.

Before starting Impact Hub, its founder Marek Koys had managed two product development start-ups in China. As an entrepreneur, he believes the following about marketing:

"For Entrepreneur, every conversation is marketing! Therefore It's your responsibility, to make sure, that you are communicating a clear message about what are you doing in China and what are you looking for! Also, make sure, people you are communicating with clearly understand the value you can provide to others."

As a hub for tech start-ups, Shenzhen has many high-quality entrepreneurs' communities, which in addition to aiding in their businesses, also helps foreigners have a better-quality life.

For all entrepreneurs, financing is a key step in driving their start-ups forward. For foreigners who are unfamiliar with the country’s ecosystem, how can they utilize the start-up investment resources in China?

In fact, many investment companies have a business proposal submission feature on their websites, where

their employees carry out professional evaluation on business proposals submitted by entrepreneurs, and

select projects that have good potential. Furthermore, there are also a wide range of start-up or tech media channels in China through which entrepreneurs can submit their proposals. In Shenzhen, there is always a project roadshow event taking place every day. The annual Innovation and Entrepreneurship Competition is the biggest event every year. If you have a good idea and plan, there is always a chance of it being picked up by investors.

This chapter was created in collaboration with global tech start-up community Start-up Grind and Shenzhen Daily, the only English newspaper in the south of China.