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Suzhou Company Incorporation

Updated:2018-3-29 16:15:09    Source:www.tannet-group.comViews:340

Suzhou Company Formation Service
Hotline: 86-755-82143512, Email: tannet-solution@hotmail.com

Suzhou company incorporation is a good choice for global investors to extend business and make profit. Suzhou is a huge market; the Chinese market is expanding many important business people’s choice. Before making the right decision, the local industry and commerce, taxation, law, management and operation of a wide range of understanding and research is particularly important. As a foreign individual or company looking to start your business or expand your activities in Suzhou, there are several legal structures to select from:

1. Wholly Foreign-owned Enterprise (WFOE)
Normally the WFOE is Limited Co. A certain rate between the equity capital and the investments is regulated and is according to the sector. Two reports are necessary for the formation of a Ltd. To found a Ltd. You need a project report with the documentation of the project, the aim, etc. as well as a feasibility study. In most of the times both reports can be put together into one document. Next to these reports a good relationship to the government is an advantage. If you follow just the exact rules rather than the Chinese way while founding the company, the formation can take a long time.

2. Representative Office (RO)
The formation of a representative office is for many companies the first step to Suzhou. In most of the cases these companies already have a customer base in Suzhou and want to support them or get accustomed to the new environment. The representatives are founded out of marketing and promotion reasons in most of the times. Mostly, the company is founded in cooperation with existing customers or business partners. They are not allowed to be involved in any business operations as well as selling products in Suzhou. For such activities they need a Chinese company or trade office.

3. Joint Venture (JV)
In earlier year the Joint Venture was the most common business type for foreign enterprises in Suzhou. In some sectors it was and still is necessary for the formation of such a company as a car producer or the aircraft industry. A crucial point for the formation of the JV is to gain market shares, customers and knowledge about the Chinese market through the JV-partner.

4. Foreign Invested Partnership Enterprise (FIPE)
In Mainland Suzhou, there are 4 modes of business presences for foreign investors: WFOE, Representative Office, FIPE, Joint Venture. FIPE becomes more and more popular among young entrepreneurs with their new startups in Suzhou as it requires no registered capital but the FIPE still could hire people, collect payments, issue invoices, apply for work & residence in Suzhou freely. It's not a surprise that most people you meet in Suzhou may not know anything about FIPE as it's relative new and government is not promoting on this.

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If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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