After you gain full confidence in China market, it is high time to you to make direct investment. Amazing will manage all aspects of incorporation to get you a business license in China. At a fixed price, we offer a range of company formation services including helping you to set up:
-Wholly Foreign Owned Enterprises (WFOE )
-Representative Offices
-Joint Ventures (Equity/Co-operative)
Investment Consultant
We Help You Make More Money from Your China Business
Structuring of a really efficient business in China should be top of the agenda for any international investor, yet curiously, in the rush to "get into the market", key component parts - worth literally hundreds of thousands of dollars - are often omitted or not even considered in the business structure. This may be partly due to lack of experience of your "on the ground" man - and also lack of experience from your China consultant. It pays to know what’s what. Here then, we provide an A to Z guide to structuring a profitable business - and get more bang for your buck out of China.
How profitable is investing in China?
On a whole, foreign investments in China are profitable. According to Morgan Stanley, US earnings in greater China have grown by a factor of 6 over the last 10 years, form $1.2 Billion in 1990 to almost $7.1 billion in 2000. This figure represents 40% of the earnings generated in non-Japan Asia.
Can your firm benefit from China?
China can be a profitable country for investment; however is it right for you? One of the first questions to be asked is fit; does China fit with your business model? The most common reasons for foreign companies to engage China are to relocate manufacturing to reduce costs and to sell into China to expand revenue. More recently, firms have been looking toward China to supplement their R & D efforts.
What are the common modes of entry?
There are four general modes of entry:
1. Agency or representative office – This is a traditional contracting relationship between a Foreign and a Chinese firm. The foreign firm may choose to set up a representative office in China to monitor and respond as needed.
2. Joint Venture (JV) - Joint ventures have been one of the most favored modes of entry. In a joint venture the foreign parties and Chinese companies contribute assets to a new entity and share ownership.
3. Wholly foreign owned enterprises (WFOE) – The option of entering as a WFOE has become increasingly viable with China’s entry into the WTO. A WFOE is usually created as a startup; however creating a WFOE through acquiring a Chinese company can have many benefits.
4. Mergers & acquisitions.
The mode of entry is determined by the nature of the transaction and the amount and type of risk you are willing to bear. Mergers and acquisitions can offer many of the benefits of a JV and a WFOE. M&A can provide enhanced speed to market, increased incentive alignment, local knowledge, expertise, and access to a strong network of relationships. The key to success in an M&A is finding a target company witch complements your firm and creates synergies.
How can AMAZING help you?
Consist of lawyers, CPAs, etc. Orient Horizons Investment & Trade, Inc. provides strategic investment guidance to small and medium sized enterprises (SMSEs) seeking to profit from investing and trading in China.
Finding the right partner and selecting the appropriate mode of entry are critical to success. With offices in China, a wide network of alliances, and expertise in business strategy, Orient Horizons is well positioned to assist SMSEs in optimizing their entry strategy, finding the right partner, and closing the deal.
Using our expertise in business strategy and experience in china, we match firms based on complementarities and their ability to create synergies. Concurrently we work with the client to determine the appropriate type of relationship based on their business model and risk tolerance.
We provide assistance and implementation with the following activities:
*JV
*Merger
*Acquisition
*WFOE
*Representative offices
*Trade matching and partner sourcing
We use our alliance network to bring additional specialized expertise to bear on a case by case basis. Our approach is results driven, tailored to the needs of the client, and focused on creating value.
