Doing Business in China: An Expert's Guide to Success

Interview with Dr. Marco Pearman Parish, CEO of Corporation China Investment Group

With 25 years of experience navigating China's business landscape, Dr. Marco Pearman Parish shares insider knowledge on establishing and operating successful enterprises in the world's second-largest economy.

Opening a company in China may seem daunting to foreign entrepreneurs, but according to Dr. Marco Pearman Parish, CEO of Corporation China Investment Group (CCIG), the process is more straightforward than many realize. In this exclusive interview, Dr. Parish breaks down the essential steps, common pitfalls, and strategic advantages of establishing a formal business presence in China.

The Registration Process: Simpler Than You Think

"To open a company in China, it's not that complicated," Dr. Parish begins. "All you need is a notarized and apostilled passport copy, and you need to decide what type of business you want to operate."

Corporation China can establish companies anywhere in mainland China, including Hong Kong and Macau. The entire registration process typically takes about two weeks from start to finish, making it a relatively quick process for motivated entrepreneurs.

Choosing the Right Business Structure

Dr. Parish emphasizes the importance of selecting the appropriate company type from the outset. The two primary options are:

1. Trading Companies
2. Import/Export Companies

Many foreign businesspeople make a critical mistake when first entering the Chinese market. "A lot of people will come to China and directly buy from the factory," Dr. Parish explains. "Then they ask the factory to ship directly to the client. I believe that's a bad idea."

Why Direct Factory Shipping Undermines Your Business

The pitfalls of this approach are twofold:

Loss of Client Control: "Once the client receives the shipment, they'll know who the supplier is and they'll be able to jump over you," Dr. Parish warns. This common scenario has ended countless trading relationships.

VAT Refund Complications: "You can't get the VAT back, which is very important for import/export and trading," he notes.

The Strategic Advantage of Your Own Export License

By establishing your own company with an export license, you create a sustainable business model:

• Purchase from multiple factories
• Combine products under your brand
• Ship to clients under your company name
• Maintain supplier confidentiality
• Protect your client relationships

"When the client gets the order, they'll see everything coming from your own company," Dr. Parish explains. "That creates continuous business because they don't know the factories, and the factories don't know your clients."

Without this structure, factories often contact your clients directly, offering lower prices and eliminating your role entirely. "That happens 100% of the time in China," he cautions.

The VAT Refund: A Hidden Profit Center

One of the most significant advantages of establishing a formal company is access to VAT (Value Added Tax) refunds on exported goods.

"The VAT refund ranges depending on the category, but normal VAT is quite high," Dr. Parish notes. "When you export goods, you get a lot of the VAT back."

For many trading companies operating on thin margins—sometimes just 5–10%—this VAT refund often represents the actual profit margin. "A lot of people doing trading don't have that much profit on the product itself. The tax refund becomes your profit, which goes into your wholly-owned enterprise," he explains.

Beyond Trading: Work Permits and Local Teams

Establishing a Chinese company opens additional opportunities:

• Obtain work permits for yourself and foreign employees
• Hire local Chinese staff
• Access Corporation China's sourcing team (with 35 years of combined experience)
• Utilize professional product sourcing and quality control services

Watch: Dr. Marco Pearman Parish on Doing Business in China

Solving the Trust Problem: Innovative Payment Solutions

"The biggest problem in international trade is trust," Dr. Parish states candidly. "And trust doesn't normally depend on the company or product—it depends on money."

To address this challenge, Dr. Parish's organization offers an innovative solution through Sterling Mercantile Neo, powered by Equibank's banking-as-a-service platform.

How the Escrow System Works

1. Both parties open Sterling Neo bank accounts
2. The client deposits payment into escrow
3. You source and ship the goods
4. Upon proof of shipment (bill of lading), funds are released
5. Both parties are protected throughout the transaction

"You're 100% sure you'll get the money," Dr. Parish affirms. This system is available to clients from over 180 countries, including Pakistan, Kazakhstan, Uzbekistan, South Africa, Nigeria, Russia, and throughout Asia and Africa.

Tax Optimization Strategies

Dr. Parish outlines a sophisticated approach to minimizing tax burden:

• Only transfer funds needed for purchasing goods into China
• Avoid unnecessary 6% income tax on funds held outside China
• Reduce the 25% corporate tax exposure
• Utilize VAT refunds as profit in your Chinese entity
• Leverage offshore accounts in zero-tax jurisdictions

"Our bank account jurisdiction has zero percent tax," he notes. "You can use the offshore Sterling Neobank to get profit out efficiently while using the Chinese company for VAT refunds and purchasing."

The strategy allows traders to:

• Reinvest VAT refunds in new inventory
• Extract profits through the offshore banking system
• Minimize overall tax liability legally and efficiently

Comprehensive Support Infrastructure

After 25 years in China, Dr. Parish and his team have built extensive infrastructure:

Legal Partnerships

• Senior partner with Dacheng Law Firm (Dentons' preferred law firm in China)
• Partnership with Yingke Law Firm (co-founder of Yingke Matrix)

Physical Presence

• Offices throughout China
• MDC (My Business Center) locations in Shanghai, Beijing, and other major cities
• Virtual office services
• Meeting rooms and conference facilities

"Wherever you are in China, we'll have an office there for sure," Dr. Parish promises.

Services Offered

• Company registration and setup
• Tax and accounting services
• Product sourcing with experienced teams
• Virtual and physical office space
• Meeting facilities for client presentations
• Work permit assistance
• Ongoing business consultation

A Philosophy of Efficiency

"We work in a very smart way so you're not spending all your time and money on infrastructure," Dr. Parish explains. "Just spend a little money on that, but get very good service."

His approach focuses on helping businesses succeed rather than simply processing paperwork. "We've worked with everyone from Deutsche Bank to small traders. I do this every day, so I know all the tricks to make it efficient, simple, and easy."

The Bottom Line

Dr. Parish's message to prospective business owners is clear: "At the end of the day, it doesn't matter where you come from—it's where you're going. It matters how much money we can save you by doing business efficiently, while making it successful so you can make money, send it back home, and have a happy life."

Take the first step toward your China business — speak to an expert today.