6 Essential Preparations for Global Selling! Credit Cards? Company Registration? (Part 1)
Essential preparations for global selling newbies! From foreign currency credit cards to company registration. Every step includes money-saving tips for your cross-border e-commerce journey.
Alright, another piece of essential content for global selling newbies!!
This content is so practical, comprehensive, and packed with value. I really think it deserves a tip jar.
Most of this is based on the pitfalls and雷区 I have personally experienced. This tutorial mainly covers what basic preparations you need before officially starting cross-border e-commerce, and whether these preparations have any money-saving tips.
1. Foreign Currency Credit Card
Save up to 1% after reading this!
Why Do You Need One?
Essential for entering cross-border e-commerce: a foreign currency credit card. Used to pay for various international services like Shopify annual fees, server costs, plugin fees, and more.
How to Apply?
Very simple - you can apply at a bank branch or through various bank apps. But my personal recommendation is to call each bank directly and ask for a human representative. It is free anyway, and you can get timely and professional help!
Important Notes (Money-Saving Tips)?
- Pay Attention to the Difference Between Dual-Currency and Multi-Currency Cards
A dual-currency card essentially shows two card networks on the card - UnionPay (for domestic use in China) and Visa or Master (for international use). You can use it both domestically and internationally.
A multi-currency card has only one card network, like just Visa or Master, and cannot be used for domestic consumption in China.
Friends reading this might think, "For convenience, I will get a dual-currency card that I can use domestically sometimes too."
But here is the thing - when you use a dual-currency card to spend in currencies OTHER than the specified ones, you MAY incur a 1-1.5% currency conversion fee (specific rates depend on the card issuer).
For example, if your dual-currency card is RMB + USD, and you spend British Pounds, you will incur a currency conversion fee.
- Pay Attention to Annual Fees and Waiver Conditions
Most cards waive the annual fee if you make 6 or 12 transactions, including installment purchases. But again, check with your card issuer for exact conditions!
2. Domestic Company Registration
I never thought I would become a business registration expert, but the group members have basically forced me into this!
Why Do You Need One?
Having a company entity is mainly needed for applying to various cross-border e-commerce services, including:
- Regular logistics services (like Ytocean, Send4China)
- Regular payment and withdrawal services (like PayPal, Alipay)
- Various advertising business accounts
How to Register?
- Many friends suggest DIY through various government websites, but from personal experience, there are still some hurdles and troubles - like needing a registered office address.
But as solo sellers, we do not have that! So if you do not have a registered address for挂靠, I would recommend:
- Search on social platforms (like WeChat, Xiaohongshu) for keywords like: Shanghai free company registration park, entrepreneurship park investment, etc. Then reach out one by one and ask - say you need a virtual address for company registration. Asking costs nothing, so what are you afraid of?
Guard your wallet tightly! Can money just fly away by itself? Once you find a reliable option through asking or searching, the process will be very quick. Just provide some basic information. You can get the certificate in basically 1-3 days. Apart from shipping fees, it is almost free!
Important Notes (Money-Saving Tips)?
-
As mentioned, many parks are free to register with due to various national subsidies encouraging entrepreneurship. Do not let business service companies scam you out of a few hundred bucks.
-
How do they make money then? First, they have recruitment targets - who knows if you might become a future taxpayer! Second, they have follow-up services waiting for you - from a few hundred yuan for stamps, to annual reports and tax filings. The moment you complete registration, get ready for "harassment calls"!
Do you need these derivative services? Which ones? There are too many to cover here - ask your service provider later. Asking costs nothing!
-
After receiving the certificate, you should do tax registration. I will not go into detail here - first, I am not an expert, and second, it is probably too far in the future for most solo sellers. Promise me you will just focus on getting your first order first, okay?
-
Individual business? Sole proprietorship? Personal shares? Confused about business types? Search on social media, or ask your service provider. Asking costs nothing! If you do not have special needs (like having business partners), I would recommend blindly choosing sole proprietorship.
- Business scope? Ask your service provider - tell them your intended business scope and they should suggest some options. (Actually, your choice will not affect much anyway.)
Part 1 Summary
- Recommended: multi-currency card
- Watch out for conversion fees
- Know annual fee waiver conditions
- Calling bank is most straightforward
- Find free entrepreneurship park
- Do not get scammed by agencies
- Sole proprietorship is simplest
- Business scope does not matter much
