⚖️ LEGAL & COMPANY SETUP

WFOE vs HK Ltd vs Shell Company Gymnastics

WFOE (Wholly Foreign-Owned Enterprise): Full control in mainland, higher setup time, bookkeeping/compliance heavy.
HK Ltd: Faster setup, easier banking, common for invoicing; but contracts with mainland parties still need China-side paper.
Shell gymnastics: Beware “HK Ltd + nominee mainland entity” tricks—can complicate IP and tax; get a real advisor.

🧠 IP & CONTRACTS

What Matters

NDAs: Useful for signaling, but often decorative without enforceable terms.
NNN vs Western NDAs: NNN (Non-Use, Non-Disclosure, Non-Circumvention) is the China standard—use it.
Tooling Ownership: Specify who owns molds/fixtures. If unclear, you may lose them.
Unwanted “help”: Factories may iterate without telling you. Contract for change approvals and sample sign-offs.

🏭 MANUFACTURING TRUTH

Reality Checks

MOQ Games: “Flexible” MOQs often hide higher unit pricing or later surprises.
Sample ≠ Production: Production parts drift—lock specs, keep PPAP/Golden Sample, re-verify.
QA/QC & Liability: Define who pays for rework/returns; don’t assume the factory does.
Saying No: Push back politely with data and drawings; preserve face while holding the line.

👥 HIRING

People & Packages

Legal hires: Use proper contracts and contributions; avoid “cash under the table.”
Salary bands: Pay market rates; lowballing loses talent fast.
Equity: Less common/less liquid; combine with clear cash comp.
Non-competes: They exist; enforcement varies—get counsel.

🈶 LANGUAGE & CULTURE

Reading the Room

Meetings: Many are rapport-building; decisions may happen offline.
“Yes” that means “no”: Listen for hesitations and delays, not just words.
Drinking & KTV: Face/politics matter; know your boundaries.
Silence: Sometimes agreement, sometimes a warning—probe gently.

📘 FOUNDER PLAYBOOK

First 30 Days

Checklist: Banking, SIM, WeChat Pay/Alipay, VPN, housing, supplier shortlist.
Common fatal mistakes: No QC plan, unclear IP/tooling ownership, moving to production too early.

ChinaForNoobs.com

~ The Ultimate Founder's Guide to Shenzhen ~

🏙️ INTRO: WHY SHENZHEN?

Welcome! 🎉

Shenzhen isn't just a city—it's THE hardware capital of the world! Here's why you should pack your bags:

🏭 Manufacturing Speed: Prototype to production in DAYS, not months
💰 Cost Efficiency: 50-80% cheaper manufacturing than the West
🔌 Component Access: Huaqiangbei has EVERYTHING. Literally everything.
🌐 Ecosystem: Engineers, factories, suppliers all within a 30-min drive
🚀 Speed of Iteration: The "Shenzhen Speed" is real

💡 "Supercharged by hundreds of thousands of engineers, rapid prototyping, unparalleled supply chain flexibility, and sheer scale, Shenzhen is now the go-to city for businesses building robots, drones, smart sensors, and wearable technology." - Peter Diamandis

🗺️ SHENZHEN DISTRICTS - KNOW YOUR NEIGHBORHOODS

Shenzhen is HUGE! Here's what each district is famous for:

District	What It's Known For
Futian	Central Business District, Convention Center, Huaqiangbei electronics markets, business meetings
Nanshan	Tech HQ (Tencent, DJI), Universities, OCT Loft, startup scene, VCs, tech talent
Luohu	Oldest district, HK border crossing, shopping, affordable housing
Bao'an	Airport, Foxconn, manufacturing hub, factory visits, mass production
Longhua	Foxconn City, electronics manufacturing central
Longgang	Huawei HQ, budget housing, residential areas
Pingshan	BYD HQ, EV/battery manufacturing, battery tech startups
Guangming	Science City, research parks, R&D facilities, emerging tech zone
Yantian	Massive port, beaches (Dameisha), shipping/logistics
Dapeng	Beautiful beaches, nature reserves, weekend escapes

💡 PRO TIP: Most founders stay in Nanshan (tech vibes, expat-friendly Shekou area) or near Futian/Huaqiangbei (electronics markets). The metro connects everything & Didi rides are super affordable - you don't need a car!

🚇 Key Metro Lines for Founders:

Line 1 (Green) - Runs through Nanshan → Futian → Luohu. Hits all the key spots!
Line 7 (Blue) - Circles through Futian, great for Huaqiangbei access
Line 11 (Purple) - Express to the airport from Futian

🔧 HARDWARE IN SHENZHEN

🏪 HUAQIANGBEI - The Electronics Mecca

Imagine 10 city blocks of nothing but electronics. That's Huaqiangbei.

📍 Key Buildings:

SEG Plaza - Components galore (ICs, resistors, capacitors)
Huaqiang Electronics World - Finished products & modules
Mingtong Digital City - Phones, tablets, repairs
Yuanwang Digital Mall - LED & display heaven

🗺️ Huaqiangbei Map:

🤖 Need help finding something specific?

Use ChatGPT with this map! Just ask:

"Guide me to find [OLED displays / capacitors / phone screens / etc.] in Huaqiangbei"

🔍 Open ChatGPT

🏭 Manufacturing Partners:

Seeed Studio - Great for prototypes & small batches
PCBWay - PCB manufacturing & assembly
JLCPCB - Budget-friendly PCBs
Various factories in Dongguan - For larger production runs

💡 PRO TIP: You don't need cash at all! Everyone takes WeChat Pay or Alipay. Set these up BEFORE you arrive!

👥 COMMUNITIES & EVENTS

Shenzhen has a THRIVING maker & startup community!

🎪 Regular Events:

Hardware Beers - Weekly networking
TroubleMaker - Regular maker events & workshops
Seeed Studio Chaihuo - Maker space events & community meetups

𝕏 SZ based Founders to Follow on X:

People who part-time / full-time live in Shenzhen / Hong Kong - follow them for up-to-date info about Shenzhen & hardware news.

𝕏 SZ based Community Builders to Follow on X:

People who part-time / full-time live in Shenzhen / Hong Kong - follow them for up-to-date info about Shenzhen & hardware news.

💼 WORKSPACES & CO-WORKING

Name	Location	Vibe	Price Range
Chaihuo Makerspace	Nanshan	Hardware focused, has workshop!	~$200/month
WeWork	Nanshan	Maker paradise	~$150/month
TroubleMaker	Shekou	Chill creative space	~$650/month

☕ CAFES & HIDDEN SPOTS

Every founder needs good coffee and secret spots to think! ☕

☕ Best Work Cafes:

Starbucks Reserve - When you need that familiar comfort
Saanci in OCT Loft - map
Wutongcun BLLB in Bao'an - map
BLLB in Bao'an next to airport - map

🌳 Hidden Gems:

OCT Loft - Creative park with galleries & cafes
Sea World (Shekou) - Waterfront bars & restaurants

🏠 HOUSING GUIDE

📍 Best Areas for Founders:

Shekou - Expat-friendly, Sea World nearby, pricier
Nanshan (Tech area) - Near Tencent, startup vibes
Futian - Affordable, good metro access
Huaqiangbei area - Gritty but close to electronics markets

💰 Budget Expectations:

Type	Monthly Rent (¥)	USD Approx
Studio apartment	¥2,000 - 4,000	$280 - $560
1BR apartment (decent)	¥4,000 - 7,000	$560 - $980
Nice 1BR (Shekou)	¥7,000 - 12,000	$980 - $1,680

💡 PRO TIP: Use Ziroom app or Lianjia (贝壳) for apartments.

✅ TO-DOS BEFORE VISITING

Get these done BEFORE you board that plane! ✈️

Visa - Get your China visa sorted (Z visa for work, M for business, L for tourism)
📋 Apply at: consular.mfa.gov.cn/VISA/
⏱️ Processing time: 3-14 days depending on the consulate you apply from

VPN - Download & set up a VPN (LetsVPN, ExpressVPN)

WeChat - Create account & verify with someone in China

Alipay - Set up for payments (verify your ID before you arrive!)

Didi - Chinese Uber, set up before arriving

Trip.com - Book your first week on Trip.com to familiarize yourself

E-Sim - Buy a data only e-sim on Trip.com or a physical number at the airport