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Topic : Restaurant chains
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Doing business in china

 
Started by : Jitena Kumar Rawat, Senior Consultant, GKC   10 30 2008 18:13:27 +0000
Industry : Management & Strategy ConsultingFunctional Area : China(Markets)
Activity:  10 views;  last activity : 07 06 2010 20:18:09 +0000

Tips for opening a restaurant in china

 
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1 2 3
1 Initial procedures
2 BUSINESS ENTITY
3 Other Issues -- Logo / Trademark Registration

Initial procedures

idea posted by Jagbir Singh Senior Consultant, Ernst & Young
I would like to list the following procedures that must take place prior to establishment of the business entity, itself:
i) Apply and obtain company name approval notification with the Beijing Administration of Industry and Commerce (BAIC)

The name (in Chinese) will be in composed of, and in the following order:

Part 1 - City of WFOE: In this case it would be: Beijing; Part 2 – Company name (i.e. Bill’s BBQ); Part 3 - Business type (i.e. Restaurant); Part 4 - Form of organization (i.e. Limited Liability Company).
All together, the Registered Chinese name would read: Beijing Bill’s BBQ Restaurant Co., Ltd.
You can choose at least three names to be checked for availability. The company name should be consistent with the actual business type, and should not explicitly or implicitly step beyond the scope of business.
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Selecting a Restaurant Location

The location of the restaurant is obviously important from a business standpoint, but based on the Beijing Municipal Environmental Protection Bureau’s (BMEPB) regulations if the restaurant is located near residential areas (within 50 meters), the residents will need to approve. At this point there are no regulations defining “approval by the residents”, and, currently, the BMEPB has found the following to be sufficient (depending on the circumstances): survey or completed questionnaire of residents, and approval letter by the local residents association.

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BUSINESS ENTITY

idea posted by Jitena Kumar Rawat Senior Consultant, GKC
To establish a restaurant, you must decide what type of entity will own and operate the establishment. In China, this is much more difficult than in other markets , where individuals can own and operate businesses. Fortunately, the restaurant industry is quite open and the operating entity may be either a Wholly Foreign Owned Enterprise (WFOE) (owned by a company or individual) or a Joint Venture (JV) (if partnering up with a Chinese national), though it is not possible for a foreigner to own the restaurant business directly as a sole proprietorship. So, to open a restaurant, there are additional licenses and approvals that are necessary in addition to the traditional requirements of a limited liability company.
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Other Issues -- Logo / Trademark Registration

idea posted by Dayanand Deshpande Senior Consultant, Ernst & Young

The general rule is to register any trademarks as soon as possible, basically meaning whoever files first is presumed to be the trademark holder. The company logo, and the Chinese and English names can be registered with the China Trademark Office.

ii) Carve Company Chop (seal), and other related chops Once the business license is issued, and the company has registered with the Exit-Entry Administration Bureau of the Public Security Bureau, the applicant can apply for the chops of the company, the legal representative and other related chops with the Public Security Bureau. They will designate an authorized carving seal agent to carve the chops.

iii) Other Applications and Registration

  • Register business license with the district Administration for Industry and Commerce and with the district Municipal Bureau of Commerce
  • Finance Registration Certificate with the Finance Bureau
  • Customs Registration Certificate with the Customs Bureau
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