Extraordinary Genius - Chapter 26 – Registering a Company
Chapter 26 – Registering a Company
Feng Xingtai banged on the table.
This son really needs to be disciplined. Skipping classes and now, he still wants to set up a company? He thinks it is so easy to set up a company?
“Dad, don’t worry. We are doing business with Russians. The State is also encouraging us to do business with them. We have the geographical advantage and we have to make good use of it. If not, within two years, those businessmen from the south will come and grab this opportunity and we will earn a lot lesser.” Feng Yu said.
“Money, money, money. All you know is money. Do you intend to stop schooling? Are you still going to high school? University? I let you go to school is for you to have a good future and not earn money!” Feng Xingtai scolded.
“I did not say that I am setting up the company. It is you that will be registering the company and the company is yours!” Feng Yu said.
He would like to register the company himself but registering needs to have an ID card. Feng Yu is less than 16 years old and he does not have an ID card yet. How can he register the company?
“I register the company?” Feng Xingtai asked.
“Yes, a trading company. There are such companies in the south now. It is reported in the newspapers every day. The Great one had also encouraged entrepreneurship. It is contributing to the nation’s economic development!” Towards people of his parents’ age, it is important to use grand-sounding words.
“Is it?” Feng Xingtai looks at his wife, but Zhang Muhua can only shake her head. She didn’t know either.
“Dad, I said before. Stop playing mahjong at night and watch more news. Another thing, this time I go to Bing city is not to play. It is for business. This trip, I earned 80,000 RMB!” Feng yu said.
“How much?” Feng Xingtai and Zhang Muhua asked.
“80,000 RMB. Only two days. I had also made arrangements with the other party. He will be purchasing another batch of goods sometime later. If we want to make money, we must grab this opportunity! Don’t you want to live in a big house? Don’t we want to fetch Grandpa and Grandma to stay with us? Once you agree to set up a company, we can buy a big house, with more than 100 square meters, in Bing City!” Feng Yu said.
Feng Yu did not dare to tell them that many rich people live in houses which are more than a few hundred and even thousands square meters of the house. He knew that his parents will not believe. It’s a long way to go to brainwash them.
“Dad, if you don’t agree, I won’t be able to study in peace. Midterm exams are coming. This will affect my results.” Feng Yu said.
“Then what about our fields?” Feng Xingtai asked.
Feng Yu rolled his eyes: “Hire people. We will stop farming in future. We will rent the fields to others. Whoever wants to farm, let them go and farm. We will move to the city and enjoy life.”
Feng Xingtai turned and look at his wife: “What do you think?”
“I don’t know, you decide yourself.” Zhang Muhua had been shocked by the conversations between this father and son. These two had talked about earning a few thousand at the beginnings to earning tens of thousands. Now they are even talking about setting up a company. She totally cannot catch up with their thoughts.
But she believed that her son, who had to go to school, cannot be wrong. Besides, how can her son cheat her?
Hearing his wife’s words and from the look of her eyes, Feng Xingtai knew that his wife really wants to live in the city. Feng Xingtai said: “Fine. I will go and register a company tomorrow. If you can’t enter the city’s high school, I will shut down the company.”
Having persuaded his parents, Feng Yu return to school with a peace of mind. It is almost midterm exams and he needs to start revision. Although he has more than 20 years of foresight, he had only focused on investments and never did other business.
He wants to enter the university and study management. At the same time, know some classmates and recruit some talented ones among them, to help accomplish his dream of having an economic empire.
When Feng Yu is studying hard study, Feng Xingtai came to Bing city with his identity card. Li Shiqiang had heard from Feng Yu and had been waiting at the train station. Using the borrowed car, Li Shiqiang sent his future father-in-law to the trade and Industry Bureau.
In this era, it is simple and fast to register a company. unlike the future, where is it very strict.
Li Shiqiang had already found out the procedures and brought Feng Xingtai to do the necessary procedures. The whole process will take about one day and the company will be officially registered the next day.
“Uncle, come and take a look. This is the office of our Taihua company.” Li Shiqiang said.
Although it is called an office, it is actually a rented warehouse near to the train station. This warehouse had been modified to two stories. The upper story is divided into many rooms which are the office and dormitories.
The company’s first employees were the young men Li Shiqiang hired to collect the bonds. They had stopped collecting Treasury bonds from door-to-door. With the opening up of the Bonds trading, the prices of Treasury bonds had risen. Now, Shen city Treasury bond prices had risen to 101.30 RMB for a 100 RMB Treasure bond.
Just by traveling between Bing city and Shen city, Li Shiqiang is earning more than a thousand a trip.
Feng Yu said that these people are useful. One of them will follow Li Shiqiang to Shen city while the rest will clean up the warehouse.
According to Feng Yu, the warehouse is going to be filled with goods and their salaries will soon to be doubled.
Feng Yu had wanted to have a 1:1 contribution ratio and spilt the company equally with Li Shiqiang. But Li Shiqiang is clear. This company can make money is due to Feng Yu and he is just a runner. So, he rejected Feng Yu’s offer. Furthermore, this time, Feng Yu’s investment is quite big. It involves almost all of Feng Yu’s money. Li Shiqiang is also a bit reluctant to give up on the treasury bond business.
In the end, the company is registered with a startup capital of 200,000. Feng Xingtai accounted for 90%, which is 180,000 RMB and Li Shiqiang accounted for 10%, 20,000 RMB. The General Manager is Feng Xingtai. Feng Yu and Li Shiqiang are deputy managers and others are salesmen.
If the Kirilenko had not given Feng Yu an additional 20,000 rubles, it would be hard for them to continue the Treasury Bond business after taking out 200,000 RMB.
Other than this 200,000 RMB, rent, renovations and other miscellaneous expenses, they still have about 100,000 RMB left to trade Treasury bonds and they would still be able to earn about one thousand per trip.
Feng Yu had discussed with Li Shiqiang. There is no need to be so clear with their initial capital. Li Shiqiang had been busy with the Treasury bonds business and Feng Yu insisted their earnings to be spilt equally.
Li Shiqiang, however, did not want so much. His family had not invested much initially and Feng Yu is the one who had thought of this idea. Feng Yu had also given him some of the profits from the deals with Kirilenko.
If not for Li Shiqiang’s firm refusal, Feng Yu wanted to give him more. But after some time, Feng Yu thought it doesn’t matter. When Feng Yu becomes successful in future, he will not forget his brother-in-law and his family.
When Feng Xingtai heard from Li Shiqiang that Feng Yu had invested 180,000 RMB into the company, he almost fainted.
His son’s business is getting bigger and bigger!