Set Up / Relocate / Close an Office or a Factory
How to find the best office space and factory locations in China for your business and what you need to do to set them up.
When you are “landing” you need the best advice and time dedicated to the key points that will affect your company drastically during the first years of operation.
Key questions to choose the right location in China?
- How many people need to be accommodated?
- Is the replication of your parent company’s office mandatory? Or a new design is acceptable.
- Price will notably vary depending the location of the office, but the perception from your employees, customers and partners will be affected by this also.
- Where to start will affect the entire PL for the first few years.
- How many workers will there be? Do they all need to be accessible?
- Is it a replication of an existing factory currently outside of China or create a new one？
- Is any governmental support needed? If we are talking about benefits and support then not every location is the same. This is an important decision affecting the business for the next decade.
- Any legal restrictions at a regional/local level?
In Shanghai it is important to consider
- Do not attempt to deal with statutory regulations, contractors and suppliers yourself.
- Do not assume additional office spaces can be added as the business expands.
Do not assume that Shanghai office services and costs will be the same as your home market.
We work for you as an independent consultant
It’s always best to seek advice from professionals who can navigate the Chinese practices on your behalf. The key things to consider include:
- Rent reviews: most leases allow the landlord to increase the rent periodically (typically every 2 years)
- Rent-free periods: the length of any rent-free period will depend on the overall terms of any transaction.
- Lease length: 5 to 15 years is typical, although break clauses can be negotiated.
- Insurance and repairs: a professional team should make sure that your premises are in good condition, and negotiate insurance and repair liabilities.
- Ancillary costs: explore rates, value-added tax, stamp duty, Land Registry fees and service charges on multi-tenanted buildings.
We currently work closely with real estate agencies and co-working spaces and have special agreements with modern Industrial Parks around China. That means better services and better prices.