Doing business in China, business contacts and partners

Investing in China.co.uk-Doing Business in China
Directory of investments and business opportunities in China

Welcome to Investing In China.co.uk, a new online directory listing up to date investments in China, Chinese business opportunities classifieds and investment companies. For each category, find individuals or organizations offering or looking for investments, information, services, business contacts and partnerships for business opportunities in mainland China, Honk Kong or Taiwan.

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Doing business in China (Source World Bank, 2007)

Region: East Asia & Pacific Income category: Lower middle income GNI per capita (US$): 1,740 Informal economy estimate (% GNP): 13.1

Starting a Business (2005)

The challenges of launching a business in China are shown below. Entrepreneurs can expect to go through 13 steps to launch a business over 48 days on average, at a cost equal to 13.6% of gross national income (GNI) per capita. They must deposit at least 946.7% of GNI per capita in a bank to obtain a business registration number.

Indicator	China	Region	OECD
Procedures (number)	13	8.2	6.5
Time (days)	48	52.6	19.5
Cost (% of income per capita)	13.6	42.9	6.8
Min. capital (% of income per capita)	946.7	109.2	41.0

Dealing with Licenses (2005)

The steps, time, and costs of complying with licensing and permit requirements for ongoing operations in China are shown below. It takes 30 steps and 363 days to complete the process, and costs 126.0% of income per capita.

Indicator	China	Region	OECD
Procedures (number)	30	18.0	14.1
Time (days)	363	157.7	146.9
Cost (% of income per capita)	126.0	137.4	75.1

Employing Workers (2005)

The difficulties that employers in China face in hiring and firing workers are shown below. Each index assigns values between 0 and 100, with higher values representing more rigid regulations. The Rigidity of Employment Index is an average of the three indices. For China, the overall index is 30.

Indicator	China	Region	OECD
Difficulty of Hiring Index	11	26.0	30.1
Rigidity of Hours Index	40	29.6	49.6
Difficulty of Firing Index	40	23.0	27.4
Rigidity of Employment Index	30	26.2	35.8
Hiring cost (% of salary)	30.0	8.8	20.7
Firing costs (weeks of wages)	90.0	44.2	35.1

Registering Property (2005)

The ease with which businesses can secure rights to property is measured below. In China, it takes 3 steps and 32 days to register property. The cost to register property there is 3.1% of overall property value.

Indicator	China	Region	OECD
Procedures (number)	3	4.6	4.7
Time (days)	32	62.2	32.2
Cost (% of property value)	3.1	5.0	4.8

Getting Credit (2005)

Measures on credit information sharing and the legal rights of borrowers and lenders in China are shown below. The Legal Rights Index ranges from 0-10, with higher scores indicating that those laws are better designed to expand access to credit. The Credit Information Index measures the scope, access and quality of credit information available through public registries or private bureaus. It ranges from 0-6, with higher values indicating that more credit information is available from a public registry or private bureau.

Indicator	China	Region	OECD
Legal Rights Index	2	5.3	6.3
Credit Information Index	3	1.8	5.0
Public registry coverage (% adults)	0.4	1.7	7.5
Private bureau coverage (% adults)	0.0	9.6	59.0

Protecting Investors (2005)

The indicators below describe three dimensions of investor protection: transparency of transactions (Extent of Disclosure Index), liability for self-dealing (Extent of Director Liability Index), shareholders’ ability to sue officers and directors for misconduct (Ease of Shareholder Suits Index) and Strength of Investor Protection Index. The indexes vary between 0 and 10, with higher values indicating greater disclosure, greater liability of directors, greater powers of shareholders to challenge the transaction, and better investor protection.

Indicator	China	Region	OECD
Disclosure Index	10	5.6	6.1
Director Liability Index	1	4.2	5.1
Shareholder Suits Index	2	6.2	6.6
Investor Protection Index	4.3	5.3	5.9

Paying Taxes (2005)

The effective tax that a medium size company in China must pay or withhold within a year is shown below. Entrepreneurs there must make 34 payments, spend 584 hours, and pay 46.9% of gross profit in taxes.

Indicator	China	Region	OECD
Payments (number)	34	28.2	16.3
Time (hours)	584	249.9	197.2
Total tax payable (% gross profit)	46.9	31.2	45.4

Trading Across Borders (2005)

The costs and procedures involved in importing and exporting a standardized shipment of goods in China are detailed under this topic. Every official procedure involved is recorded - starting from the final contractual agreement between the two parties, and ending with the delivery of the goods.

Indicator	China	Region	OECD
Documents for export (number)	6	7.1	5.3
Signatures for export (number)	7	7.2	3.2
Time for export (days)	20	25.8	12.6
Documents for import (number)	11	10.3	6.9
Signatures for import (number)	8	9.0	3.3
Time for import (days)	24	28.6	14.0

Enforcing Contracts (2005)

The ease or difficulty of enforcing commercial contracts in China is measured below. It takes 25 steps and 241 days to enforce contracts there. The cost of enforcing contracts is 25.5% of debt.

Indicator	China	Region	OECD
Procedures (number)	25	29.8	19.5
Time (days)	241	406.8	225.7
Cost (% of debt)	25.5	61.7	10.6

Closing a Business (2005)

The time and cost required to resolve bankruptcies is shown below. In China, the process takes 2.4 years and costs 22% of the estate value. The recovery rate, expressed in terms of how many cents on the dollar claimants recover from the insolvent firm, is 31.54.

Indicator	China	Region	OECD
Time (years)	2.4	3.4	1.5
Cost (% of estate)	22	28.8	7.4
Recovery rate (cents on the dollar)	31.5	24.0	73.8