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BDO EUROPEAN CHINA DESK THE 5 KEY QUESTIONS TO INVESTING IN CHINA:
WHY CHINA?
Due to the size of its market.Currently, China is the second biggest importer in the world
on its way to becoming the world leader due to the stimulation of the domestic market initiated by the Chinese government
Due to its high growth rates, despite the current global crisis, China continues to grow annually at a pace over 7% per year.
We commit ourselves to China in order to have access to new clients. Its last five-year plan (2011-2015)
focuses on industries in which Spanish companies excel, such as infrastructure, renewable energies
(in which Spain is the principal investor of all the EU) agriculture food-products and environment.
WHICH IS THE BEST LEGAL FORM FOR INVESTING IN CHINA?
There is no one legal best option to negotiate and invest in China.
The best legal form is one that is designed for the business plan of the company and its needs in China.
The most commonly used structures to invest in China are: the acquisition of Chinese companies,
the acquisition by company merger, the incorporation of a branch or the establishment of a franchise,
and a "joint venture" agreement between companies.
The differentiating factor between these legal forms is the risk that the investor wants to assume,
since depending on the structure chosen they will have more or less control of the business.
One aspect is fundamental in all of them: the correct choice of local partner which
is why it is always necessary to carry out a "due diligence" to prepare correctly the
partner's agreement and make the appropriate checks.
HOW TO PLAN YOUR CORPORATE STRUCTURE IN ORDER TO CONTROL THE TAX COSTS?
With a well planned structure, you will be able to concentrate fully on what is really important, the management of your business.
For this reason, it is sometimes helpful to create a holding company in a jurisdiction
which gives you flexibility and allows you to optimize the taxation of the management group as a whole.
In addition, you will have to establish risk management mechanisms and the necessary controls
to guarantee the fulfillment of the obligations for transfer pricing as well as to study the
implications that the cross-border supplies of goods and services have upon VAT.
Furthermore, the transfer of employees from Spain to China will call for the establishment
of incentive packages for the employee, as well as the need to optimize their tax burden
and to assure the fulfillment of their formal obligations both in China and in Spain.
In conclusion, a well planned company formation will control tax costs, 31 00:02:57,430 --> 00:03:01,370 give incentives to certain employees and avoid surprises in the future
WHY OUTSOURCE FINANCIAL OPERATIONS?
Because at the time you set foot in China the Managment of the Company must focus all its efforts
on promoting sales and on establishing institutional relations.
Because the professionals at BDO China have extensive experience in the global administration
of subsidiaries and branches of multinationals.
Because you will have the peace of mind that you will be complying with all the labour, legal and financial requirements.
Because upon investing in a new company, you will be turning your fixed costs into variable ones.
Because you will always have a person in BDO Spain who will be the point of contact between BDO China and you.
In conclusion, because we will be one of your strategic partners in your investment in China
WHAT FINANCIAL ADVICE DO YOU NEED IN YOUR INVESTMENTS?
From BDO we can offer a complete financial advice throughout the different phases of the investment process,
from an initial economic-financial evaluation, business plan design, the search for partners and investors,
due diligence, execution of the investment and subsequent monitoring.
Altogether, with the coordination of multidisciplinary teams, (lawyers, tax experts, technical advisers, financial advisers, etc.)
and multinationals teams, specially spanish and chinese
WHY BDO?
Because our extensive network allows us to give a flexible, agile, and quality service whilst maintaining proximity with our clients.
Because we are the professionals services firm with the largest growth and number of offices in China.
Because the economic and legal environment in China is changing rapidly
and companies need a partner who can react locally, rapidly and in a multifaceted way.
Because we have to take advantage of our cultural similarities with China.
from the BDO European China Desk we would be delighted to accompany you in your business ventures.
we welcome you to BDO.
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