China is a complex market with cultural, legal, commercial, and political dimensions. These factors affect international businesses’ governance strategies and implementations. Moreover, conditions change rapidly, sometime even over a few months. Therefore, the journey of thriving in this prospective market can be rocky, if without a reliable local partner.
Our expertise and resources are primarily China focused. We keep ourselves on the frontier of China legal and business developments, our broad and firm connections with local businesses, and close coordination with government exercises, well position us in solving complex issues.
When formulating a strategy and an action plan, we consider your special circumstances and requirements, match it with the most up-to-date information, scrutinize the details and verify it with our practical experiences.
Our professional service can help your business in the following areas
- Enty Strategy and Business advisory
- Capital and Tax planning; Profit Management
- Legal structure and Incorporation
- Accounting, Payroll, Taxation and Compliance
Case study – A real example from our work which demonstrates how we can help
A mid-sized European retailer was looking to enter the Chinese market with more control over branding, distribution and sales. Management understands that by setting foot on the ground, the firm will gain profits and prospects in China. However, due to the vast differences between the Chinese and European exercises in legal, accounting, taxation, and compliance, the firm realizes it is inefficient in hiring its own seasoned team to cover all those areas, and more importantly, to mitigate risks of non-compliance.
After talking to our consultants at CSG, the following areas of work had been identified:
• Planning phase
Regulatory environment for the industry
Screening of possible favorable government policies and subsidies
I.P. investigation and planning for protection
Due diligence of business counterparts
• Corporate establishment phase
Capital requirement analysis
Cash flow planning
Location comparison and selection
Form of legal entity and group structuring
• Early operational phase
Recruiting and HR compliance
Payroll process initialization
Accounting and systems initialization
• On-going operational phase:
Accounting and taxation practices
Renewal, amendments of company licenses and industry specific certificates
Periodic compliance with Ministry of Commerce (MOFCOM), Ministry of Finance (MOF), Administration of Industry and Commerce (AIC), State Administration of Tax (SAT), State Administration of Foreign Exchange (SAFE) and National Bureau of Statistics (NBS).
With the advisory and implementation services of CSG consultants, the business completed the planning and corporate establishment phases within 3 months, set up work processes across various functions which are being continuously improved to date.
The firm was able to employ a minimum number of foreign and local staff in the core areas of marketing, sales, customer service and logistics that contribute to the competitive edge of its brand and able to enjoy fast growth from second year since establishment.