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Company Formation China



Open a HORECA Company in China

Updated on Monday 06th January 2020

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Open a HORECA Company in China.jpgThe food and accomodation service industry is known as HORECA (the abbreviation for Hotel/Restaurant/Café) and the term has its roots in Benelux and France, being rapidly used around the world, China included. Having a company in the HORECA industry can be extremely profitable considering the fact that the food & beverage services develop in a fast manner and they are subject to huge revenues. Foreign investors interested in opening a HORECA company can get in touch with one of our company formation agents in China.

How can you open a HORECA company in China?

The Wholly Foreign-Owned Enterprise or WFOE is the proper business entity for most of the activities in China, including the ones in the tourism industry. A company can activate under the rules of WFOE in China, so it is important to pay attention to the formalities and regulations involved:
  1. The minimum share capital of CNY 30,000 must be deposited in a local bank account.
  2. Information about the owners, the activities, the country of residence and the general business rules must be comprised by the Articles of Association.
  3. The WFOE in China must have a representative agent.
  4. The business license must be obtained from the State Administration of Industry and Commerce in China.
  5. The registration for tax purposes and social contribution is the next step to consider for opening a WFOE in China.
International investors who want to skip any misunderstandings in terms of incorporation should talk to one of our company formation representatives in China and ask for complete support and advice. Some might think that the applicable legislation is difficult when opening a company in China, so the support of an experienced company formation agent will prove extremely helpful.

What types of HORECA services are available in China?

HORECA industry generates huge profits in China, so having a business in this field might be a suitable and appreciated idea. Foreign investors in China can think of the following activities in China:
  • opening a café bar in China with all the licenses and permits obtained;
  • opening a hotel in China’s most attractive and most visited cities;
  • opening a restaurant, an appealing business idea that attracts lots of foreign investors each year;
  • opening a bed & breakfast establishment with low start-up costs;
  • food courts through which the local or international cuisine can be promoted.
All of the above-mentioned businesses are part of the HORECA industry and can be easily established if all the licenses and permits required are obtained. One of our company formation agents in China can provide in-depth assistance and support and can explain the involved requirements in the company formation process.

Hiring staff for a HORECA company

The employment regulations in the tourism sector in China need to be attentively measured by the foreign entrepreneurs who want to establish such businesses in the country. Specific training programs need to be allocated to future employees in the HORECA sector. Waiters, maids, baristas, hotel managers and other employees must have specific qualifications, based on the facilities provided. This means that owners of Chinese HORECA companies must hire specialized personnel and even impose particular courses and training sessions if it is the case.

Marketing for HORECA companies in China

The success of a Chinese HORECA company is based in a large percent on the promotion methods implemented, so the attention in this matter should start right from the begging the business is opening its doors. All the social media channels available, alongside an official website of the company should be prepared at the same time the business is incorporated in China. In the case of hotels, motels and other accommodations, these should be presented on specific and well-known platforms registered in the tourism sector. For more details about how to open a HORECA company in China, we invite you to address your inquiries to our company formation representatives in China.

Making investments in China

Being the second largest market in the world, China is for many years the attractive business destination for a wide range of international investors. The tax-appealing free trade zones, the highly skilled workforce and the great market openings all over the world make China a suitable business location. The following facts and details might be interested for foreign investors in China:
  • China is the second largest FDI recipient in the world after the USA;
  • according to 2019 Doing Business Report presented by World Bank, China ranks 46th out of 190 worldwide economies;
  • around USD 140,000 million was the total FDI inward flow in 2018 in China;
  • approximately USD 1,627,000 million was the total FDI stock in China last year.
You can contact our company formation agents in China and find out more about how to open a HORECA company.

Meet us in China

Call us now at +86-755-82148419 to set up an appointment with our company formation specialists in China. Alternatively you can incorporate your company without traveling to China.

As a Tannet Group Limited client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in China. 

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