Laying out a Foreign-Owned Restaurant Business in Beijing

1. Presentation

For us all (unfamiliar) ‘local people’ in Beijing, we have seen the monstrous development in unfamiliar possessed cafés throughout recent years. Not exclusively are such foundations famous (and entirely beneficial), they are adding to the global food and standpoint of the country’s capital. In this article, we diagram the different methodology expected to lay out a café. (There are choices in laying out an administration office first, then, at that point, an eatery as a part of the workplace; notwithstanding, we will talk about this in later articles.)


To lay out a café, the proprietor should conclude what sort of substance will claim and work the foundation. In China, this is significantly 新鮮糧食店牌照 more troublesome than in different business sectors, for example, the US, where people can possess and work organizations. Luckily, the café business is very open and the working substance might be either a Wholly Foreign Owned Enterprise (WFOE) (claimed by an organization or individual) or a Joint Venture (JV) (if cooperating up with a Chinese public), however it isn’t feasible for an outsider to possess the eatery business straightforwardly as a sole ownership. Further, to open an eatery, there are extra licenses and endorsements that are essential notwithstanding the conventional prerequisites of a restricted obligation organization. Nonetheless, when the organization is set up with the appropriate business scope and enlisted capital, it very well may be utilized to open extra branches, however, obviously, each branch will require specific endorsements for that particular area (see beneath Health and Hygiene, Environmental Impact, and so on)
Except if there are convincing reasons in any case, for example, finding and believing an appropriate Chinese accomplice, the WFOE, a restricted obligation organization entirely possessed by the financial backer, is the logical decision for outsiders, as it offers the most independence. Albeit already very normal and sadly still predominant, for straightforwardness, numerous outsiders select to permit Chinese accomplices to open the café as a homegrown (Chinese) organization. For this situation, the Chinese partner(s) will be sole shareholder(s) of the organization, leaving the unfamiliar financial backer with no lawful possession privileges. (Given the regularly extremely huge forthright private venture, we alert financial backers to consider the propriety of such a proprietorship structure.)


In sequential request, the accompanying methodology should happen preceding foundation of the business substance, itself:
I) Apply and get organization name endorsement warning with the Beijing Administration of Industry and Commerce (BAIC)
The name (in Chinese) will be in made out of, and in the accompanying request:
Section 1 – City of WFOE: For this situation it would be: Beijing; Part 2 – Company name (for example Bill’s BBQ); Part 3 – Business type (for example Café); Part 4 – Form of association (for example Restricted Liability Company).
All together, the Registered Chinese name would peruse: Beijing Bill’s BBQ Restaurant Co., Ltd.
It is prudent that the candidate picks no less than three names to be checked for accessibility. The organization name ought to be predictable with the real business type, and ought not unequivocally or verifiably venture past the extent of business.

ii) Selecting a Restaurant Location

The area of the café is clearly significant from a business point of view, however in light of the Beijing Municipal Environmental Protection Bureau’s (BMEPB) guidelines on the off chance that the eatery is situated close to local locations (inside 50 meters), the inhabitants should endorse. Now there are no guidelines characterizing “endorsement by the occupants”, and, at present, the BMEPB has viewed the accompanying as adequate (contingent upon the conditions): study or finished survey of inhabitants, and endorsement letter by the nearby occupants affiliation.

iii) Apply and Obtain Health and Food Hygiene License with the Municipal Health Bureau

Different documentation should be outfitted, including however not restricted to the area and site guide of the café and the eatery’s inside wellbeing and security rules. Inside 10 days of the archives accommodation, the Health Bureau will advise candidate and organize the on location review. The essential areas of examination will incorporate the cleanliness and wellbeing of; 1) crude food varieties planning region; 2) kitchen region; 3) worker evolving region; 4) spigot and sink region; and 5) garbage removal region. Investigators ought to give an on-the-spot rundown of resistance and proposals to cure what is happening. For specific minor issues, an accommodation of a photograph by the candidate of the altered region should get the job done, in order to not need a second visit by the reviewer. Notice of endorsement, accepting all areas of review don’t need rehash visits, ought to be inside 20 days.