Let me count. Whats the lowest amount for an office – lets say 2000 RMB /month for a small cubicle in some facility thats lets you register company address. Thats already 24k per year.
Annual accounting work, assuming a very low level of activity, plus audit fees etc – 10k. A computer, let’s say a poor desktop 5k. Internet connection – skip this, go to Coffee Bean instead? Lets say 10 RMB for a cheap cup x 3 days a week x 40 working weeks.
I don’t expect those guys work that hard anyway. Thats 12k… Let me see, we are at 52k now.
Do we pay someone? Cleaner? Salesman? Technical staff? Well, let’s imagine the small business owner wants to get money out of the business, not as dividend (as it means profit tax) but as expenses or salaries.
Let’s say the guy is not too ambitious, 3k a month. Grand total of 88k in the first year. The company is out of money after only one year… How do you handle that then, smart guy?
I do hope thats not the “path to China” that you guys recommend. Oh and I guess there is no way to pay your fees…