China’s meteoric economic rise is there for the world to see. It’s not a surprise that China is one of the largest economies and the world’s largest exporter
but it may come as a surprise that it’s also an attractive destination for global consulting firms.
Over the last five years, China’s consulting sector has grown at a consistent annual growth rate of 9.4%
. Generating revenue of over $28bn, the sector has over 102,969 businesses employing over 500,398 people.
This growth in the consulting sector is credited to China’s investment in high-tech and consulting services. With the consulting sector blooming, industries are conducting their entire operations out of China including HR, marketing, and business strategy.
As China has established itself as one of the most lucrative destinations for consulting firms, many international management consulting firms have started operation as a consulting WFOE in China
Current Landscape of Consulting Sector in China
There’s no shortage of competition in the consulting sector in China. When it comes to international clients, the local consulting firms in China are up against the foreign ones. As a result, the competition uplifts the efficiency of the entire sector.
As of now, consulting services are based in the urban region of China with Shenzhen, Shanghai, Beijing, Guangzhou and other major cities leading the way.
Starting a Consulting Company: What It Means
Starting a consulting company essentially has the same procedure as starting a manufacturing company; WFOE registration. WFOE, short for Wholly Foreign Owned Enterprise, was conceived to encourage foreign investment in the manufacturing sector.
However, now WFOEs are applicable to the service sector as well. Consulting, marketing, management services, IT, and trading sectors in China are also utilizing the WFOE
Perks Of Consulting WFOE In China
Starting a consulting company in China is easy since the capital requirements have been removed. Yes, there are no formal requirements regarding registered capital. Furthermore, consulting WFOEs require less capital as compared to other WFOEs such as manufacturing or food.
When you register a consulting WFOE, you get the legal authority to hire employees. Furthermore, you can apply for work visas
for your legal representation, employees, and their families.
You can also issue invoices
to your customers, take benefit of the subsidies and tax preferences
as well as patent your products
. Setting up a consulting company in China could be the right direction for your business, but to do it right, you’ll need us!
At Business China
, we offer company registration services. We’ll make the company registration process easier for you so get in touch with us