Be sure to follow the steps outlined above, and before you know China die casting manufacturer, you will be the proud owner of a prosperous die casting company operating in one of the most lucrative markets in the world. If you want to increase your chances of success when setting up die casting in China, using these seven tips will help you avoid common problems and improve your chances. Before granting you permission to launch your die casting company in China, the Chinese government will conduct a review of your tax history, financial documents, and proof of funds, all of which are legally required.
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In China, there are numerous branches of reputable international banks located all over the country. In addition, you have the option of opening a business account with any one of the internationally recognized Chinese financial institutions, such as the People's Bank of China, the Commercial Bank of China, or the Bank of Communications.
Your company's goals should play a role in determining which financial institution you work with. If you plan to die cast for customers who are solely or primarily located in China, it is best to work with a local bank because of the strong partnerships that they have with other local businesses. However, if you intend to serve the international market and only die cast in China, you should consider using a global bank that has multiple branches located in various countries around the world.
You will be required to establish the following accounts in the bank:
The Renminbi (RMB) is the currency used for day-to-day dealings.
A tax account that is used for making payments to the State Taxation Administration A currency account that is used for all transactions involving exports and imports (as well as for dealing with the State Administration of Foreign Exchange)
The opening of the bank account will typically take anywhere from 5 to 10 business days to complete. You will be required to provide documentation such as your Business License, Registration (or any proof that the registration is in progress), the Articles of Association, and references from an existing bank located in a foreign country. For further information, you will need to obtain it from the financial institution at which you will be opening a business account. The provision of financial resources is the next step.
You can obtain funding from a variety of sources, including:
Banks Manufacturing companies can access first-rate corporate financing options from a plethora of Chinese and international banks operating in the country.
The total amount of money loaned to manufacturing businesses in China reached a staggering $1 trillion in value in just the year 2020. This is a very clear indication that the Chinese government as well as the country's banks are very interested in promoting manufacturing within the country.
Angel investors
Angel investors are high-net-worth individuals who invest in start-up companies in exchange for financial backing and a share of ownership in the business. In exchange for their investment, angel investors receive certain ownership rights in the company. They are an excellent method for acquiring financial resources. They will not only be able to provide you with the funds that you require, but they will also be able to offer you guidance regarding the operations of your business.
When you make purchases of materials using credit, you build up trade credit, which can be thought of as capital or funds. When you are in urgent need of financial resources, you can make use of this method of funding, which is intended to be used for a short period of time. In order to be eligible to launch an initial public offering (IPO), you will need to get your company listed on the Shanghai Stock Exchange and/or the Shenzhen Stock Exchange.
This is an excellent method for generating large sums of cash, in particular if you have an excellent reputation in other countries' die casting industries and can sell your products there.
Friends and relations
If you know people in your inner circle who are able to lend you the capital you need, then this is a great way to avoid the high interest rates and expensive commitments like dividends and bond interests. However, this only applies if you know people in your inner circle who are able to lend you the capital you need. Remember that you need to show detailed financial projections and solid research in order to show that your business is feasible in the market that you have chosen. The type of die casting process that you use will determine the equipment, tools, technological advances, process set-ups, and materials that are necessary for your die casting business. They frequently have teams of sourcing agents who have a great deal of experience and have worked with hundreds of suppliers, manufacturers, and wholesalers. Because of their one-of-a-kind expertise, they are able to assist new die casting businesses in locating the most suitable machinery and materials suppliers to meet their financial requirements and their plans for expansion. A reliable China sourcing agent will also collaborate with highly regarded Amazon sellers who are in a position to provide a wide variety of customers with the product testimonies they are looking for.
Establish a presence for your company on the internet.
When your die casting business is up and running, it is time to start spreading the word about your existence to the rest of the world. You have the option of hiring a company that specializes in the development of websites or one that manages social media platforms to create an online presence for you. Alternately, you can create the website on your own (for example, www. abcdiecastingshanghai. com) and then register it with one of the companies that offer website hosting.
Put in place on your website the appropriate plug-ins to allow for direct online order placement and payment.
Employ the services of an SEO-optimized content writing company or a freelance content developer to develop written material for your website. Make sure your website includes a blog section so that you can post insightful content that establishes you as an authority in your field. Regularly share posts; ideally between 3 and 5 times per day.
