Hendersen Consulting - investment

By: L'astelier Hendersen  09-12-2011

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.

Setting up a representative office has been the simplest way to get into China and gain on-the-market experience.

Other than financial institutions, a foreign company still cannot set up a branch office in China at the moment.

The target's financial information is not sufficient to work-out the financial model or business valuation

If your investment involves a Chinese partner, you should probably go for setting up either a Sino-foreign equity joint venture or a cooperative joint venture.

Otherwise, a wholly foreign-owned enterprise will allow you greater management control and flexibility.

The setting up of a foreign-invested holding company or management company is another relatively new option.

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.

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