Expansion and WFOE incorporation in China
A global manufacturing and supply chain company, headquartered in the U.S., with expansion goals in China.
The manufacturing company was in the process of creating a Trading Wholly Foreign-Owned Enterprise (“WFOE”) in China. The company needed assistance with site selection, office leasing contract negotiation, business license acquisition, tax registration, and a new name for their Chinese company, including assurance that the proper authorities were consulted to verify options. The company also sought consultation on the professional codes and requirements with customs, expert guidance on exporting to the U.S., and assistance with preparing, reviewing, notarizing, and delivering the proper documents to the consulate. Additionally, the manufacturer required an experienced team to facilitate site selection and negotiate with the landlord to reduce costs and complete the incorporation.
Our team of accountants, and operational and tax experts guided the company through various Chinese entity forms to determine the optimal structure for the WOFE and to meet their Chinese business strategy. Our international consultants helped the company prepare required documents, create and register a new Chinese name, obtain a business license, and complete the certificate of approval application. Our experts also assisted the manufacturer with all required registration with the appropriate authorities. Throughout the process, our team involved both the Chinese managers and the directors of the parent company to ensure everyone was on the same page. Our consultants also identified key suppliers and sought alternatives to reduce the costs and replace the existing, unstable, supply base.
The manufacturer successfully established a WFOE, utilizing our expertise and knowledge of the business culture in China. Due to the success of the incorporation, the company has engaged us further for accounting and tax regulatory compliance consulting services including accounts and accounting set up, general taxpayer qualification applications, monthly bookkeeping services, tax filing, annual tax declarations, and annual income tax filing, among others. Our team continues to support the company with the identification of their supply base, global tax planning, restructuring, transfer pricing strategy, and future expansion into Mexico.