A Big Order Scam is a common type of business fraud. It has been used by scammers in China ever since China opened its borders to foreign trade. Surprisingly, despite many warnings and raised awareness of these scammers, a lot of naive entrepreneurs, blinded by a vision of big profit, still fall for this old trick. If you don’t want to be one of them, read how Big Order Scam works and you won’t get fooled.
Agriculture remains to be the vital industry of China, but its production output cannot meet the rising demand. Local agriculture was heavily affected by the development of industry – vast spaces of agricultural area were polluted, the shortage of water also results in the abandonment of more fields that slowly turn into desert. Meanwhile, the annual growth rate for the food industry is 15%, the consumption of meat has risen and furthermore, the rich Chinese are even more fond of foreign products, including wines, salmon or chocolate.
China is the world’s biggest consumer of alcoholic beverages. For many years, the Chinese people preferred the products of their national industry, but recently the structure of demand changed rapidly. While the shelves of Chinese supermarkets are still filled with expensive ceramic jars with baijiu, nation’s most revered high-alcohol rice vodka, more and more Chinese are learning how to enjoy red wine or imported beer.
Registering a company in China is still a relatively complicated procedure, despite the fact that the People’s Republic of China authorities are struggling to make those procedures easier for foreign businessmen. In China, there are four basic types of business presence. We need to keep in mind that every province has its own distinctive features which should be analyzed before choosing the place for our business. Every potential investor should evaluate his time and financial capabilities before making such decisions. As the opening business in China may take a lot of time, we present some basic modes of operation accompanied with the short description. While registering the company in China, we should seek help of the professional companies and institutions which already have the experience in this field; they will help us to choose the most suitable type of business presence.
Representantive Offices, RO
The main advantage of this type of business presence is the low cost, this type is the most popular among the foreign entrepreneurs. It enables them to obtain residence permits. There are several disadvantages though: ROs do not have legal personality, they cannot issue invoices, the personnel must be employed through the governmental agencies. This type is chosen mostly by companies which are performing market surveys or are overseeing the Chinese contracting party (ie. factory) while importing from China.