Entering the Chinese market is an ambitious project that transforms a company’s potential. But between the initial idea and the first invoice in RMB, the journey is marked by critical decisions, administrative procedures and cultural pitfalls.

Here are the 20 essential steps we recommend at Double-Link after more than 10 years of supporting French companies in China.

Phase 1: Strategic preparation (Months 1 to 3)

Step 1 — Define your objectives in China

Before any action, clarify your ambition: selling on the Chinese market? Sourcing suppliers? Producing locally? Each objective implies a different strategy, legal structure and budget. Draft a China business plan separate from your global plan.

Step 2 — Conduct field-based market research

Desk data is not enough. The Chinese market evolves at a speed that makes reports obsolete within 6 months. Invest in a field mission: distributor interviews, trade-show visits, meetings with prescribers.

Step 3 — Choose your geographic target

Shanghai, Beijing, Shenzhen and Guangzhou do not offer the same ecosystems. Each city has its specialty (finance, tech, industry, commerce) and its regulatory logic. A preliminary comparative study is indispensable.

Step 4 — Assess your budget

WFOE creation, rent, HR, accounting, marketing: budget €80,000 to €200,000 for the first year of operational presence. Without a sufficient cash cushion, the project collapses within the first 18 months.

Step 5 — Secure your intellectual property

Even before setting foot in China, file your trademarks and patents with the CNIPA. China applies the “first-to-file” principle: a late filing can cost you your trademark.

Step 6 — Choose the legal structure

WFOE, joint venture or representative office: each structure has its tax, social and regulatory implications. The WFOE remains the most common form for retaining full control.

Step 7 — Define the scope of activity

Your business license will specify your business scope. The Chinese authorities are strict: only declared activities are authorized. Anticipate your possible developments from the very first drafting.

Step 8 — Prepare the parent company’s documents

The Chinese authorities require notarized and apostilled documents from the parent company: certificate of incorporation, articles of association, letter appointing the legal representative, bank certificate. Allow 2 to 4 weeks for the apostille via the Ministry of Foreign Affairs.

Step 9 — Register the company with the authorities

The process involves MOFCOM (investment approval), the AIC (Business License), the tax bureau (tax registration), the bank (RMB and foreign-currency accounts) and SAFE (foreign-exchange control). With professional support, allow 6 to 10 weeks.

Step 10 — Open the bank accounts

Open an RMB account for current operations and a foreign-currency account to receive the share capital. The banking procedure is rigorous: the branch manager will personally check the documents.

Phase 3: Operational deployment (Months 6 to 12)

Step 11 — Find premises

A Chinese commercial lease follows its own rules. Have the contract reviewed by a local lawyer and negotiate the exit clauses. The price per square meter varies radically depending on the city and the district.

Step 12 — Recruit your first local employee

Chinese labor law is protective: mandatory contract within 30 days, regulated probationary period, social contributions (五险一金) from the very first day. A bilingual local employee will be your best asset for navigating the daily administrative environment.

Step 13 — Set up accounting

Chinese accounting follows the CAS (Chinese Accounting Standards), which differ from French and IFRS standards. Tax returns are monthly (VAT, withholding tax) and annual (corporate income tax). Even with no activity, the returns are mandatory under penalty of a fine.

Step 14 — Obtain the licenses specific to your activity

Depending on your scope of activity, additional licenses may be required: an ICP license for a website hosted in China, an import-export license, a food license, a medical license. Identify these requirements upstream to avoid blocking your activity.

Step 15 — Structure your digital presence

WeChat, Douyin and Rednote are essential. Create the official accounts, secure your handles, plan your local editorial strategy. A consistent presence on one channel is worth more than a scattered presence across all of them.

Step 16 — Build your commercial network

Distributors, agents, partners: commercial trust in China is built over time and through in-person meetings. Plan regular trips and be present at sector trade shows.

Step 17 — Define your local pricing policy

Mechanically importing your European price list is a mistake. The Chinese market expects a reflection on perceived value, buying habits and local competition. A precise benchmark is indispensable.

Step 18 — Manage international financial flows

Repatriating profits involves SAFE authorizations, tax audits and withholding taxes. Anticipate these procedures to avoid cash-flow blockages.

Step 19 — Secure your supply chain

If you produce or source in China, secure your suppliers: quality audits, framed contracts, regular controls. Continuity of supply rests on lasting relationships.

Step 20 — Measure, adjust, persevere

No market entry follows the initial plan to the letter. Put simple indicators in place: sales, qualified contacts, customer feedback, margin. Adjust every quarter, without giving up the long horizon that makes the difference in China.

In summary

Entering the Chinese market is a matter of method, patience and local presence. Every missed step costs three months. Every carefully executed step creates a cumulative effect that strengthens the project. Double-Link supports French companies throughout this trajectory — from the initial diagnosis to operational deployment.