The paper "Aptamil in China Market" is a perfect example of a business case study. Aptamil is an Australian based company which is involved in the production of powder milk. The company plan to expand its business to China. To be able to establish and develop a competitive and profitable business venture, the company needs to be involved in various business activities. These activities should focus on fulfilling the legal requirements set for foreign companies by China and create a good business foundation to be successful in the country. One of the most important aspects to consider is the legal and governmental requirements for foreign entry in China.
China has in past experienced a number of challenges in milk import sector which include health and safety challenges. In this regard, the country developed regulatory measures to be satisfied before importing milk from any foreign country. Some of these regulations include the need for the shared health certificate and bilateral agreement between the exporting country and China. In this regard, Aptamil must verify whether the Australian government has attained this requirement before making any further move.
In addition to this, any food product company in china is required to make an online registration with the general administration of quality supervision, inspection ad Quarantine (AQAIQ). Milk is regarded as a food product and thus, Aptamil will be required to make this registration (EUSME Centre 10). Beside of the special regulation set for food production in China, Aptamil will also need to satisfy other governmental policies and regulations employed on foreign investors. These include adhering to the Chinese government taxation rules. Any foreign company venturing in the Chinese market is needed to pay taxes based on the Chinese local tax codes.
The most significant categories of tax for foreign business include business tax and corporate income tax. Business tax is currently being converted to the value-added tax system as integration to the current VAT regime for trade, retail, wholesale and manufacturing. The company will be required to register with the right tax authorities after receiving its license within 30 days (Sovereign China 24).
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