Legal/Business Questions

[muyongshi]

First of all, you may save the disclaimers - I know that you are not a lawyer (and even if you are) any responses and advice will not be taken or construed to represent legal counsel. But it is the weekend and I won't sit with a lawyer till sometime next week, so some friendly advice would be greatly appreciated!

 

The company I am currently managing is about to start negotiations on a contract to provide our product to a retail outlet. We are licensed as a WOFE with a business scope for the production and sale of bread, pastries and cakes (面包。。。制作及销售). In addition to our business license, we currently have a restaraunt license (but no 流通许可 which we don't need for what we currently do, which is produce and sell in house).

 

The company we are talking with currently has several different operations (a coffee house, a french pastry "production facility", a restaurant, etc) but I don't have the specifics of their licenses yet (they will send them to me tomorrow). The retail locations they are looking at opening would be a combination of pastries from their own production facility and our bread products. I'm assuming they would operate these retail locations either with the 流通许可 or another restaurant license.

 

I have tons of hypotheticals and questions but here are just a few of the major ones:

 

1) Is our business license as it stands is sufficient to provide baked goods for resale?

2) Also, in terms of entering into a partnership or contractual agreement with this company, what would our options be legally speaking?

3) Any general advice (other than, "You may get screwed" because, yes, I do realize that is a possibility- but all business is risk, it just depends on if this risk is one we are worth taking)?

4) Any good recommendations of lawyers in Mianyang (long shot, but worth asking)?

 

Thanks!

[Zeppa]

You could try reading chinalawblog.com - I shouldn't think you will get reliable help free of charge anywhere, but you might find general advice there.

[Shelley]

Is our business license as it stands is sufficient to provide baked goods for resale?

 

 

Just from a logical point of view, what do you do with your baked goods now if you don't resell them? and does it matter who or how you resell them according to your license (not having the details i don't know)

 

I would say if you have a license to resell baked goods and unless there any exclusions it should cover you.

 

And no, I am not a lawyer.

 

Don't know about any of the other questions.

[muyongshi]

@zeppa, thanks! I spent most of yesterday and today on there looking at things.

@Shelley

My over simplified understanding of business licenses regarding food in China is that you kind of have 2 options: manufacturing or restaurant. Manufacturing is solely for resale - you produce and sell it yourself as a retail store and sell to middle men who then in turn sell for a profit. Or you open as a restaurant and have seating where then you can produce and sell yourself in store.

What I don't know is whether the restaurant model can sell to third parties for resale or not.

So to answer your question is we have our own shop we sell out of. The deal we are looking at would allow us to mitigate some risk and still increase market share/increase brand exposure by doing it with another company who is interested in the same expansion model we are.

[Shelley]

Oh yes that makes sense. Well that does sound like you need someone who knows how to interpret these things.

 

I hope it works out for you and you make oodles of money

[gato]

Aside from the monetary terms like pricing, profit-sharing, and cost sharing (particularly before you are profitable), you probably want to think about whether you want to have an exclusive supplier/partner relationship, trademarks, confidentiality, conditions for termination, anti-poaching provision, non-compete, and so on.

If you google for those terms, you'll probably find some suggestions for what you should be considering.

[889]

Don't forget there may be home country tax and legal considerations, especially if you are American.

[aone]

As far as I know, for baking and selling, you should get :

1. 健康证 Health Certificates for the staff

2. 排污许可证Discharge Permit
3. 食品卫生许可证Food hygiene license

4. 食品流通许可证Food distribution license

5. 营业执照Business license

6. 税务登记证Tax Registration Certificate

7. 消防许可证 Maybe not necessary

 

You can simply turn to an agent of company registration for consultation.  绵阳(Mianyang) 公司(Company) 注册(Registration)

 

As search result shows below: 

 

https://www.baidu.com/s?ie=utf-8&f=8&rsv_bp=1&ch=&tn=96010190_dg&bar=&wd=%E7%BB%B5%E9%98%B3%E5%85%AC%E5%8F%B8%E6%B3%A8%E5%86%8C&oq=%E7%BB%B5%E7%BE%8A%E5%85%AC%E5%8F%B8%E6%B3%A8%E5%86%8C&rsv_pq=e13d6ea7002d6482&rsv_t=2cf2puxu%2FGCGWsCCaAx3hp3%2Bdu53AyArpF1NlxgHgmnRGei81hmqwIzugmRtEb5IImA&rsv_enter=1&inputT=5000

 

You may pay official fee + agency fee 3000(more or less), they will do all the things for you.  

You may pay 1000 as deposit and the balance after you have received all the licenses. 

 

I am sure they will save your time and breath.