There are a number of various approaches that international companies can take when Imported product from China [สินค้า นำ เข้า จาก จีน, which is the term in Thai]. Not all of these require the foreign investor to establish an entity in China. Relying on one’s circumstance, particular methods function better than others. There are various models offered when importing from China. This section will talk about a few of the alternatives a business that imports items from China might want to utilize.
- Representatives as well as Distributors
Firms of small to medium-size frequently count on either representatives or suppliers when selling their items in China While in both situations, the international company itself does not need to have an existence in China, there are differences in between the two techniques.
An agent typically locates clients in China for the international business in return for a payment on sales. It does not have the products. A representative, however, purchases the goods from the international provider as well as sells them in China by itself account.
- Establishing a Company in China
There are different reasons why a foreign business will wish to establish a subsidiary in China when exporting its products to the nation. Without having an entity in China, the international business will be unable to employ personnel. It will, likewise, be unable to provide VAT billings to Chinese clients, or directly take repayment in and transform RMB. With the entity offering the items under its own name, it can set the rate itself. If the international company has personnel on the ground in China, it can develop stronger control over matters such as copyright security, communication between customers as well as the international headquarters, logistics and quality assurance.
- Licenses Needed for Import as well as Export
A number of licenses are required when establishing a company for import as well as export. A few of these need to be applied for throughout the consolidation process. The trading of certain products requires a permit, such as medicines, food, or medical devices. When this kind of service is consisted of in the firm’s business range as well as business permit, the financier will typically require to obtain the product particular certificate initially, prior to being provided the business certificate.
