en
en
8 (926) 785-24-24

Режим работы: 10:00-19:00 (по мск)

info@yangconsult.com

Questions and suggestions

07.10.2024

Business with China, in China and in Russia: business and legal aspects

China has become one of Russia’s leading trading partners, opening up new opportunities for entrepreneurs. Creating a joint business with Chinese companies not only improves the investment climate in the country, but also simplifies interaction with foreign partners. In this article, we will discuss the key legal aspects that should be considered when organizing business with China. 

The main legal aspects

To successfully conduct business with Chinese companies, it is necessary to understand the basics of Chinese contract law. In 2020, China adopted the first Civil Code, which significantly changed the rules of doing business. 

The Chinese prefer to sign paper contracts, even if the transaction is carried out over the Internet. This may include signatures, seals, or fingerprints. There are two main types of contracts in China:

  • Partnership agreement: an agreement on a simple partnership where the parties jointly conduct business.
  • Technical agreement: combines elements of a license agreement and an agreement for the performance of scientific research.

It is important to note that China does not have certain types of contracts, such as banking and insurance. In case of disputes, the decisions of the Russian courts do not apply in China. In such cases, you should contact the International Commercial Arbitration Court or the China International Economic and Trade Arbitration Commission (CIETAC). 

Steps for Success in Business with China

1. Development of a business strategy
Usually, business in Russia begins with the purchase of goods in China for subsequent sale. Determine how the purchase will be carried out:

    Wholesale bases: supply goods for subsequent sale.

    Import companies: take care of all stages of purchase and delivery.

    Intermediaries: often the most expensive option.

    Direct purchases: it will require more effort, but it may be more profitable.

    2. Defining a niche

      Explore the market and choose less competitive niches, such as household chemicals or specialty products. Pay attention to consumer demand and trends. 

      3. State Registration

        You need to register an individual entrepreneur (IE) or a limited liability company (LLC). For small turnovers, it is better to choose an individual entrepreneur, and for large ones — an LLC. Don’t forget to open a checking account for business. 

        4. Search for A Supplier

          Popular platforms for sourcing suppliers include Alibaba and 1688. Participate in the Canton Fair to find new products and establish connections with manufacturers. 

          5. Supplier Verification

            Communicating with a potential partner will help establish trust. Check the availability of licenses, documentation, and company history. We strongly recommend requesting a Proforma invoice to avoid unpleasant surprises. 

            6. Request for Documents

              Before starting cooperation, you will receive:

              Proforma invoice — a preliminary invoice for the product.

              Packing list — information about each product.

              A business license is a document confirming the legality of a business.

              7. Payment For The Goods

                Funds can be transferred through Russian banks or branches of Chinese banks in Russia. Make sure that the bank supports international transfers and check the fees. 

                8. Logistics and Delivery

                  Choose the best delivery method: sea, rail, road or air transportation. Consider the cost and delivery time when choosing the method. 

                  9. Customs Fees and Documents

                    Do not forget to pay customs duties and issue all necessary documents for the import of goods into Russia. Prepare a declaration of conformity, certificates and other permits. 

                    10. Checking The First Batch Of Goods

                      It is recommended to hire an intermediary to inspect the first batch of goods to ensure compliance with the stated standards. 

                      Frequently Asked Questions

                      What are the specifics of working with Chinese partners?

                      It is important to record all the conditions in writing and avoid oral agreements. Take your time in negotiations and try to establish trusting relationships, avoiding discussing political topics. 

                      Organizing business with China in Russia requires a careful approach and knowledge of legal aspects. YANG CONSULT International business law company is ready to help you with issues related to opening and running a business, as well as with legal support of transactions. We will provide reliable legal protection and support at every stage. 

                      Follow our news — there are even more interesting projects ahead on the channel https://t.me/yangconsult

                      #YANGConsult #Business Consulting #Legal Support #Contractual Law #Disputes #Arbitration #Strategy #Procurement #Registration #Sole Proprietor #LLC #Suppliers #Platforms #Verification #Documentation #Payment #Transfers #Logistics #Delivery #Customs #Documentation #Work


                      Other news

                      YANG CONSULT expands horizons: the company enters the Algerian market

                      YANG CONSULT, an international business law firm, is pleased to announce its entry into the market of the People’s Democratic Republic of Algeria. From October 28 to November 1, a productive trip to Algeria took place, organized by the Managing Partner of the company Yangulbi Magomed Bisultanovich. This trip symbolizes a new stage of the […]

                      more details
                      Debt collection under a construction contract: how to get your money back

                      In the construction sector, debt under construction contracts is a common problem. It can occur due to various factors: unfair performance of work, delays in deadlines and many other reasons. If you are faced with a similar situation, it is important to know how to act and what steps to take to successfully collect debts. […]

                      more details
                      Comprehensive business support in Argentina from YANG CONSULT

                      Argentina is a country with a promising market and extensive opportunities for foreign companies seeking to expand their presence in Latin America. With its developed agriculture, active mineral exports and an opening market for international investment, Argentina attracts businesses around the world. YANG CONSULT provides comprehensive business support, which helps foreign companies effectively and safely […]

                      more details
                      FAS aims to combat “fake” winners in public procurement

                      The Federal Antimonopoly Service (FAS) of Russia plans to strengthen control in the field of public procurement by obtaining the right to enter companies that won tenders by providing false information into the Register of Unscrupulous Suppliers (RNP). Maxim Shaskolsky, Head of the Federal Antimonopoly Service, told about this at the All-Russian Conference in the […]

                      more details
                      GR (Government Relations): The key to successful interaction with the state

                      In the modern world, business and the state work closely together, and it is becoming increasingly important for companies not only to follow established laws and regulations, but also to actively participate in their formation. GR (Government Relations), or working with government agencies, is a strategic tool that allows businesses to build relationships with authorities, […]

                      more details
                      Subsidies for agricultural producers and organizations of the agro-industrial complex in the Moscow region

                      Companies and individual entrepreneurs working in the field of agriculture and animal husbandry in Moscow and paying taxes to the city budget can receive reimbursement of part of the costs in the following areas: 1. Milk salesConditions for obtaining a subsidy: 2. Maintenance of breeding stockConditions for obtaining a subsidy: 3. Payment of interest on […]

                      more details