Over the past ten years, China has turned into the most attractive destination for business, and especially for global consulting firms.
In fact, according to the IBIS, World Business Intelligence, the average annual growth rate of China’s consulting services market is up 10% from 2009 to 2014.
This massive growth in the consulting industry, and business in general has been due to China’s investment in high-tech and consulting service in China.
Also, by the 90s, many foreign consulting firms entered China and were providing consulting services to Chinese businesses.
Due to the fact that China has become one of the most lucrative markets for consulting services, it has been successful in attracting a large number of international management consulting firms that have been operating as a consulting WFOE in China.
It is no secret that many of the world’s largest consulting services have expanded to the Chinese market, and are now providing their services to clients from around the globe in areas such as, HR, operations, marketing and business strategy.
Even the top local consulting firms in China are competing with foreign consulting WFOE in China for international clients, which increases the competition and efficiency of consulting service providers within China.
At the moment, consulting services in China are mostly located in large cities such as, Shenzhen, Guangzhou, Shanghai, Beijing and other major cities of China. But, most of the largest consulting WFOE in China are located in the four major business centers of China.
There are many reasons for this, the most obvious one being that setting up a consulting WFOE in China requires low capital.
Some other advantages of establishing a Consulting Company in China are:
☆ China’s comprehensive management control
☆ A consulting firm’s ability to repatriate profits to their parent company
☆ The issuance of a tax invoice
☆ Easy availability of all forms of consulting services
☆ No requirement for real, brick-and-mortar offices
☆ No requirement of capital injection
As well as many other advantages that a consulting WFOE in China can benefit from.
A consulting WFOE in China also enjoys a high margin along with insufficient regulations that does away with all the traditional red tape that foreign consulting firms have to deal with while operating in other countries.
While the Chinese consulting industry is still going through its growth stage, this means the thresholds are low, while the geographical distribution is unbalanced.
These are just a few reasons why a consulting WFOE in China can enjoy significant expansion, not just in the larger cities in China, but also the many medium-scale cities as well.
Establishing a Consulting WFOE, You will be able to:
☆ Run a legal consulting WFOE in China and bear limited liability for registered capital can mitigate risks
☆ Apply for a work visa for the legal representative, employees, and families.
☆ Legally hire employees and purchase social security and accumulation fund.
☆ Formal invoices can issue for customers.
☆ Reasonable business subsidies and tax preferences can avoid through the company.
☆ A China consulting company can apply for the trademark to gradually enhance their brand value in the industry competition for the long-term benefit. This will give customers more trust.
☆ May apply for the product patent to be protected by the law.
Establishing a consulting Wholly Foreign Owned Enterprise (WFOE) in China
Guidance of shareholder’s documentation preparation before the registration of the consulting WFOE;
- Coordination with the landlord to prepare all the rental contract of office, property layout drawings, and other required documents;
- Check company’s legal Chinese name and English name;
- Organize and draft the legitimate file by our File Handling Team, then courier to customers to sign then courier back after signature confirmed through email;
- Approval Certificate and Approval Letter application;
- Business License application;
- Notification of Commencement of Business;
- Official, financial and legal representative’s sea’ application and record application;
- Arranging the bank account opening after confirmed the appointment with both the legal representative and the bank;
- Bank Account Opening Permit application;
- Credit Code Certificate application;
- Other required assistance.