Set up a company in China and trade on WB/OZON safely and profitably

Set up a company in China and trade on WB/OZON safely and profitably

We're often asked about the possibilities and prospects of trading on marketplaces through a Chinese legal entity. Is it even worthwhile and safe these days, is it hard to set up a company, and how do you even run one without connections in China?

In order, and briefly:

Setting up and supporting the company

At MATE we help our clients set up companies and bank accounts in China, and support them at every stage - all the way through to help with marketplace registration.

But our support doesn't stop there - while the company is operating, we provide accounting and legal support. We stay involved in the trading processes and shipments on the Chinese side.

So setting up a company and running a business without the "headache" - that's what we're here for!

Trading safety

A Chinese company can operate on WB/OZON under the FBS/FBP/FBO models. We're interested in the first two, which keep storage and shipment of goods to pickup points secure.

FBS/FBP - shipping from your own or bonded warehouses inside China. As a bonus, working through logistics hubs in China's northern provinces lets you cut delivery time to the client's pickup point to a minimum.

FBO also lets you, as before, bring goods into Russia and into local logistics hubs.

So trading through a Chinese legal entity fully closes the question of business safety!

Economics and benefit

  • Chinese taxation is noticeably softer and simpler to understand
  • A lower commission structure, which gives a clear edge and raises the seller's profit
  • Direct purchasing of goods and paying for shipping straight from the bank account, with no conversion costs and no fees for money-transfer agents
  • Dividend payouts to a foreign shareholder aren't taxed

So trading through a Chinese legal entity is more profitable and beneficial!

Other opportunities

  • Running the business doesn't require the client to live at the place the company is registered, split up legal entities, buy real estate or shares in it, or get pulled away from actually running the business
  • It opens the door to trading on Alibaba, Amazon, Taobao and other marketplaces
  • Work visas and personal bank cards can be arranged

To get a consultation and set up a company in China - @Ivan_Mategroup