China : create a WFOE

Presentation of a 100% company major foreigner – WFOE

 Wholly Foreign Owned Enterprise (WFOE) is a company with capital foreigner. In China, the WFOE was originally designed to encourage the industrial activities sour to the export or in the advanced technology. However since China entered the World Trade Organization, these conditions were abandoned and the WFOE became more democratic.

From now on the WFOE is used from now on by service companies and of consulting, import export and company of software also.

The various typical of WFOE

There are many business sectors for the WFOE.

The list this below is often chosen by the investors:

·         Manufacturing WFOE

·         Consultancy (yet Service(Department)) WFOE

·         Trading WFOE or Foreign Invested Commercial Enterprise (FICE)

The advantages of the WFOE

The advantages of a WFOE included these advantages:

·         Independence and freedom of implementation of an international strategy without being dependent on a Chinese partner

·         Capacity has to manage officially all the business operations of the company and to charge it rmb

·         Protection intellectual of the knowledge and the technology

·         No need of license of Import / Export for its own products

·         Total control in its strategy of recruitment

·         More effective operations, management and future development.

·         The investors do not any more need to establish an office(desk) of representation during two years before creating a WFOE

Fields of activity of a WFOE

One of the most importing problems of a WFOE is the definition of its field of activity. The field of activity needs to be defined and the WFOE can only exercise the activity defined in its license of activity.

Every change of activity requires a change of the statuses. Inevitably, there is a negotiation with the authorities to accept a wider field of activity.

Generally the inclusive field of activity, investment consulting, international economic consulting, trade consulting, marketing information and consulting, corporate promotion consulting management, technology consulting, manufacturing, etc.

http://www.sjgrand.cn/wfoe-china

http://www.wfoe.org/

http://www.chinalawblog.com/2013/10/forming-a-china-wfoe-watching-the-sausage-get-made.html

Consulting in China

It became commonplace for more and more companies come from any horizons to come to become established in China. Very often for very simple reasons or which seem obvious: whether it is for reasons of costs; opportunities of opening of new markets or the optimization of a value for money. Even if it can seem simple, the path is strewed with discoveries and with diverse complications.

Importance of consulting in China

We have to face the numerous unforeseen and the cultural differences which can very fast be transformed into real assault course.

It is better to have set clearly its goals before launching. The Chinese market is not only very vast is governed by fiscal, legal standards, quality requirements, historic past etc. China and the Chinese will make for you no present in your wish implant you on their territory. Always keep in head that China does not need you, it is you who come to look for your happiness there!

Be surrounded well or advised by consultants having a serious experience of China and its way of functioning. Consulting in China is crucial. Whether it is by contacts with Chinese whom you are next for some time (called Guanxi) or by Westerners having good notions of ground by a certain control of the language in particular, or by an on-the-spot work experience.

Be assisted by consulting in China

Never hesitate to call on to embassies, chambers of commerce, consulting companies or consulates which can put you in connection with reliable persons and which will indulge to do a service to you.

If after this first phase of analysis and discovery of the Chinese market you wish to pass in the phase of presence of your activity; whether it is of production, R*D, offices, Representation office or others, it is warmly recommended to you to call on to companies of consultancy service under construction and presence.

http://consultingforchina.wordpress.com/2014/05/01/sj-grand-provides-financial-advisory-to-foreign-companies-in-china/

http://daxueconsulting.com/consulting-china/

http://www.chinadaily.com.cn/

http://www.globaltimes.cn/