That seems to indicate setting up companies in China is a good way to be employed in China. Just that getting a business to work - anywhere - is very difficult. Does this include Joint Ventures as well?
1. Setting up a company in China is
not a good way to get a visa - it is a good way to kiss your ass goodbye unless you are totally familiar with Chinese business practices
2. If you are totally familiar with Chinese business practices it is unlikely that you would want to form a company in China
3. US15,000 is the tip of a very large iceberg. For example:
"The real question is what the Chinese authorities will consider as adequate capitalization for the specific project. Of course, that answer varies by type of business and location. For example, it is very expensive to operate a business in Shanghai. On the other hand, it can be very inexpensive to operate the same business in a rural area of China. It is expensive to operate a capital intensive business like manufacturing, but relatively inexpensive to operate a knowledge based consulting business.
The Chinese regulators usually consider all of these issues. To complicate matters, each local regulator has its own basic standards on what constitutes adequate capital for certain types of business activities. These numbers are not published, but when asked they will almost always be provided. They can only be determined through direct contact with the regulator and only after providing a clear explanation of the project. The local regulator virtually never considers the statutory minimum in making a determination regarding adequacy of capital. Rather, the local regulator will determine what it believes is an adequate amount of capital based on all the circumstances. Once the investor has a clear idea of the outlines of a project, it is usually a good idea to engage an attorney to contact the local regulator to see what their response will be to the proposed amount of investment. This initial screening can save a lot of time if the investor's idea of the proper amount of capitalization is dramatically different from that of the local regulator.
In determining what constitutes adequate capital, one needs to consider the peculiar situation in China that building rents are virtually always paid in advance, that payment for products for sale are virtually always paid in advance, and that a reasonable advance reserve for salaries is also required. Thus, the initial start up costs are much higher than in a location like the United States, where credit and time payments are more common. In addition, the foreign investor needs to take into account the risk aversion of the Chinese regulator. The Chinese regulator will not approve a project that looks risky or under-funded. The regulator has no incentive to do this, especially for a 100% foreign owned entity."
3, Start reading through China Law Blog (
http://www.chinalawblog.com/), as recommended, for background on company law in China (WFOE, JVO, etc)
4. A lot of spouses do unpaid voluntary work - it does not bring in money but they find it is a rewarding use of their time