We received an email from a consultant of China with whom we have worked in the past. This consultant has a client who wishes to rent a factory in China:
We have a client whose business exports _ materials from China mainly .Ses Eastern Europe customers are large _ plants always have lots of potential suppliers online, it is crucial.
Current Chinese suppliers often try to reduce costs by buying materials first of poor quality and their equipment is not really updated either.
Its sales are booming and they want to rent a factory somewhere in China, put at the top of the line equipment and implement high-quality production.
I remember somewhere in Chinalawblog you or a reference to Dan that your business processes often rent factory.
This process will be client to achieve China's need?
Steve replied as follows:
The legal way only a foreign company can rent and operate a plant in China is to create a legal entity as a wholly foreign owned (WFOE) entity or Joint Venture (JV) to do so.Creation of a WFOE is by far the most common way and it is a common next to position your client companies.
Creation of a WFOE is a standard process and we do all the time.
The lease of the plant is a separate issue training WFOE.It can be a complex process even if we do those all the time also.The details depend on where factory will be située.Le main problem our meeting clients in the rental of a factory in China is that they try often rent of plant that cannot be used for a WFOE.Pour space factory to qualify legally for a WFOE factory space must be legally by the owner, it must have all documentation appropriée.Cela, lease needs to be registered with the Office real estate of the local government.
Although it sounds relatively simple, we find that many companies seek to space good cheap marché.Espace certainly exist in China, but cheap space is usually accompanied by documentation issues that make its use in a WFOE impossible.Il exist many other issues related to often additional baux.Travail plant must be performed on the factory space and provision should be made for the installation of equipment fleet can often be quite complicated, requiring extra care in location.enfin process, many WFOE training details depend on the location of the plant.
If you wish to discuss further, please let me know.
For more information on what it takes to train a repatriation in China, see the following:
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