What we do

We guide you through your international development.

We advise the optimized strategy that will enable your organization to grow beyond its home market.

Business registration

Depending on your project, our consultants will advise you a specific legal entity. At AST Consulting, we make sure to fully understand our clients’ needs to set up the best company for their plans and expectations.

We will help you establish your business bank account. Regardless of your project, this benefit is included in all levels of service provided by AST Consulting.

 

AST Consulting provides business registration for the following entities:

  • Wholly Foreign Owned Enterprise (WFOE)
  • Representative Office
  • Joint-Venture
  • Branch registration

Please find below more details on each entity.

 

Wholly Foreign Owned Enterprise (WFOE)

A WFOE is a limited liability company owned 100% by foreign capitals and the shareholders can be a natural or a legal person. This legal form is the most common way to incorporate for foreigners wishing to develop their own business in China (as there is no need of a local Chinese partner). WFOE can be registered only in the following areas:

  1. Commercial activities such as commerce, distribution and import-export trading
  2. Production and assembly (local purchase and import for local resale and/or export)
  3. Services and consulting to companies or individuals

The Chinese government requires a different capital deposit depending on the activity and the registration location (some provinces, cities and districts run by different laws or agreements). The investment capital has to be significant for the company to be trustworthy.

The business licence of a WFOE is valid for 30 years.

Advantages:

The main advantages of a WFOE are the complete autonomy of management, decisions and strategy.

  • 100% foreign owned, that is to say more freedom and less hassle to incorporate as there is no need for a Chinese partner
  • Ability to issue bills in RMB
  • Profits can be converted to another currency and repatriated to the parent company settled abroad
  • Minimum restriction on the number of foreign employees that can be recruited
  • Natural and legal persons may be shareholders of the WOFE. Usually, the WFOE is owned by a Hong Kong company. This allows the owner to benefit from the Common Law rule in Hong Kong, which is more convenient for foreigners than the Chinese law.

AST Consulting guides you through all stages of your WFOE registration. From getting the Chinese authorizations to the opening of bank accounts, our experts support you.

 

Representative Office

The Representative Office acts as a link with the headquarters in the original country. It enables business promotion in China and stands for a good gateway to the Chinese market for foreign companies that want to evaluate its potential.

The Representative Office does not require a large investment but is not a legal entity so it cannot issue bills in the local currency.

The investor must be the parent company, which has to be more than 2 years existence (a Hong Kong Company can be the parent company as long as it has been established more than 2 years ago).

Advantages:

  • Simple and fast incorporation procedure
  • No minimum capital
  • Low registration costs

For companies wanting to explore the Chinese market or that do not need to bill directly products and services; the Representative Office stands for the least expensive entity to settle in.

AST Consulting guides you through all stages of the incorporation of your Representative Office.

 

Joint-Venture 

A Joint-Venture is a partnership between a local company and a foreign company, creating a new company where each party provides the Joint-Venture its added value: know-how, structure, workforce, etc. …

There are 2 types of Joint-Venture:

  1. Cooperation sino-foreign Joint-Venture (CJP): The CJV is characterized by a more flexible legal form in its organization, and may be a corporation or a partnership. Most often, the Chinese partner offers the labor force, land and factories. Technology, equipment and capital are offered by the foreign partner.
  2. Joint-Venture sino-foreign entity (JVCP): The JVCP remains the most common form of Joint-Venture in China as it is a limited liability company in China. The share of the foreign investor must be at least 25% of the capital. The law does not stipulate any requirement for the Chinese partner’s investment. The latter generally provides the right of land use, employees, factories and raw materials.

Advantages:

  • Existing structure benefit
  • Shared investments and expenses
  • Quick market entry
  • Reassure prospects and strengthen the image in a market where it is not or little known

AST Consulting guides you through all stages of the establishment of your Joint-Venture, including the partnership negotiation and the incorporation procedure.

 

Branch registration

Growth and extension are the goals of every company. For this purpose, we also provide branch registration to facilitate our clients’ evolution in other provinces, cities or districts in China.