When you decide to open a business in China, one of the best formations is a wholly-owned foreign enterprise (WFOE). It is recommended because you get to fully control the business without restrictions. Unlike a joint venture where you must select a Chinese partner, who must have controlling shares, a WFOE is different. But even with its awesome advantages, the process of registering a WFOE is lengthy and complex.
Often, people who try to register a WFOE ends up falling by the wayside. The best alternative, which is apparently cheaper and more convenient, is using consultancy services. In this post, we will look at the main steps that you can use to identify a good agency to help you with setting up a WFOE.
Benefits of Using Consultancies to for Opening a Business in China
Before we can list the main steps of selecting a great consultancy, let us start by noting the benefits of working with them:
- The consultants are experts who have been in business registration for many years. Therefore, they know what can work and what cannot.
- Working with a consultancy when setting up WFOE in China helps you to avoid getting into conflict with the law. For example, they will help you to understand and follow the Chinese accounting standard when filing tax returns.
- Because the consultants are actively involved in the Chinese market, they will be very helpful during the early days of business operations.
- Your consultants can help you with identifying the right staff for your business.
Selecting a good Consultancy to help you with setting Up WFOE
Now that you know the benefits of working with consultancies when opening a business in China, the next question is: “How do you pick the best consultancy?” Here are some useful tips:
- Look for experience of the consultancy
The best consultancy should be experienced in offering the services you are seeking. For example, the selected agency should have a deep understanding of the different business formations in China and how to form them.
- Ask for a demonstration of successful cases the consultancy has helped in the past
Another factor to consider is the consultancy’s experience in helping previous companies start their operations in China. To know this, you need to look at past clients’ feedbacks after getting help from the company. You could even ask for referrals to have assurance beyond any reasonable doubt that you are working with the best consultancy in setting up WFOE in China.
- The consultancy should have experts in your area of specialization
What products or services will you be dealing with? Is it mobile technology or industrial machinery, among other products? The best consultancy to work with should have experience in dealing with clients in the same niche.
- Flexible and willing to see you grow
The best consultant to work with should be enthusiastic about seeing your business grow. Therefore, take some moment on the consultancy’s website to see the mission and vision. You might also want to hold an interview with some of the experts to determine their inherent drive to see your business grow from one level to another.
If you want to be successful when setting up a WFOE in China, the best route is working with the right consultancy. Follow the above tips to identify the best consultancy for fasterbusiness incorporation and growth in China.