The most direct way to penetrate the China market is to set up local presence.There are various forms of investment vehicles available to suit different business objectives and operations.Hendersen can help you to find out the most appropriate investment vehicles from the business, tax and legal perspectives based on the comprehensive understanding of your business objectives and investment plan in China.
Normally a foreign investment enterprise ("FIE") is set up for a specialized purpose with a specific business scope. Apart from the traditional production FIEs, foreign investors may now also set up trading FIEs, service FIEs, wholesale and retail FIEs, etc. If your group has already established a number of FIEs and is poised to make further investments in China, you may consider establishing a China holding company to centralize management, provide shared services, consolidate the distribution of goods produced by your FIEs in China and pre-market certain imported products. Upon having paid up its registered capital according to the approved schedule, your FIE may also expand its geographical coverage by setting up branches.
It is quite critical for you to select an appropriate location to set up your business in China.Hendersen can help you to select several appropriate locations based on the practical client experiences and your business objectives.Subsequently, Hendersen can perform a detailed location study to obtain the following information for each selected location:
Before setting up in China, you should review your current investments and future business plans to determine the optimal investment vehicle to set up in accordance with the current China investment regulations and WTO market access commitments.
The steps of setting up in China must be carefully planned.The following are some points that you cannot afford to miss: