Setting up in China.

When setting up in China there are challenges to understand which is the best structure to adopt. You must first establish your China Market Strategy and we can help you with this. An effective market entry strategy utilizing the right market research ensures optimal use of corporate resources.

The current options to consider when setting up in China are:

Entry Modes Pros Cons
Representative Office (RO)
  • Low set up cost
  • Short set up period
  • Flexible exit
  • Full control
  • Restricted scope of business activities
  • More rigid labour regulations
  • Not tax efficient
  • Annual renewal
Joint Venture (JV)
  • Immediate access to local knowledge, network and talents
  • Able to leverage established domestic brands, marketing and distribution channels
  • Potential conflicts of interest with the Chinese partner
  • Risk in losing IP
  • Differences in management styles and company culture
Wholly OwnedForeign Enterprise (WOFE)
  • Full control over management and operation
  • More flexibility in company strategic issues
  • Easier to repatriate profits
  • Better protection of IPR
  • Higher registration capital required
  • Longer time to gain access to local knowledge, contacts and market

We are here to guide you step by step, to help you make the right business structure that best suits your ambitions in China. If you like to learn more about the different business structures and the practical support we can provide, call us at +44 (0)1223 421968 or click here.

 

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