Posts Tagged ‘WFOE’
10 Years: 3 articles I want to share with you about setting up a business
10 Years: 3 articles I want to share with you about setting up a business in China China Sourcing Academy (CSA) lecturer Mike Bellamy has been blogging for a decade. CSA selected the best 100+ posts (covering 18 different sub-topics) from his various blogs for their relevance to international buyers doing business with China. Each…
Read MoreCompliance in China. Challenges of Transparency, Interpretation & Enforcement.
Compliance is one of the biggest challenges facing foreign companies operating in China. While there is a law/policy/regulation/suggested standard promulgated by Beijing for almost every aspect of doing business, for the typical Western owned company operating in China, the problem is two-fold: Interpretation and enforcement of the law varies greatly not only from province to…
Read More4 amazing advantages of using a Hong Kong holding company when investing in Mainland China.
Question: While I was exploring setting up my own factory in China, I noticed most investors first set up a HK holding company which then owns the China based entity. Why don’t the foreign investors directly own the PRC based factory, sourcing office, sales office, warehouse or trading company? Based on interviews with other…
Read MoreWhen does it make sense to process Chinese VAT rebates in-house?
A European friend of mine is based on China and runs a sourcing agency. The following are excerpts from our discussion on the pros and cons of setting up in-house VAT rebate facilities in China. I’ve been reading your article “What is VAT and why should I worry about it” on your blog, and it…
Read MoreChoosing Your Business Vehicle: Wholly Foreign Owned Enterprises
WFOEs usually take the form of limited liability companies and the liability of the foreign investor in respect of the WFOE is limited to the amount of capital it agrees to contribute. The risk of proceeding with a WFOE structure is that a foreign investor will not have the assistance of a domestic partner when…
Read MoreAdvanced sourcing skills: WFOE and other options for a China presence
Introduction When the volume of goods sourced in China is large, the buyer may start to ask the following questions: Should I set up my own operation in China? What are my options? How much would it cost? Over the years in China, I have…
Read MoreExperienced or Not. Setting Up in China. Part 1 of 5
Transcript below: Are rep offices in China redundant? Most likely, the answer is NO, since redundant is too strong a word. But the Government made rules stricter and stepped up the enforcement of the rules because many ROs were used outside their business scope; As an example, RO have to be reregistered once a year…
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