China has been the world’s biggest manufacturer for a long time now, so it really isn’t a surprise that you might be interested in manufacturing products in China. If that is the case, how do you set up a manufacturing WFOE? 

The fact that you have a limited liability company in China doesn’t necessarily allow you to run all kinds of business activities, such is the situation in Hong Kong. Every company must apply for its respective business range license, so every manufacturing WFOE has to and can only run a business within the business range approved by the Chinese government.

The sheer size and force of the Chinese industry has grown a lot in recent years, with China having the world’s number one spot in manufacturing. The Chinese Ministry of Industry and Information Technology (MIT) announced in July 2017 that China is still the world’s number one manufacturing choice due to its cheap, active manufacturing, which is achieved in big part because of China’s access to huge local reserves of minerals and metals necessary to manufacture all kinds of products. For Chinese based manufacturers this translate to quick, reliable supply chains which can bring them what they need.

Company Types

Reclaiming VAT tax	Cost Reduction
The Chinese law for VAT is to apply the tax to both overseas and local companies operating within China, products are classified as zero-rated when exporting, so all VAT incurred is reimbursable, saving a lot of much needed capital.	Cooperating with someone with local know how can increase effectiveness and resourcefulness, and can also provide you with tips about how to better operate in China, our research is targeted at giving your clients a better chance to run their operations in China.
Participate in the Chinese Market	Intellectual Property Protection
Our team is ready to assist you to establish an appropriate sales funnel to provide directly to your customers, be it in whole sale or retail. Moreover, you will be able to utilize your own products and set up both online and physical stores.	IP registration provides several advantages, including giving you a legal presumption of ownership and exclusive rights to use the mark nationwide in connection with your goods or services.

Are you interested in manufacturing products in China? Then you must first register your enterprise as a China Manufacturing Company, also called a manufacturing WFOE. Sometimes, the government entities will provide advantages and reduce or eliminate taxes for overseas manufacturing enterprises, but keep in mind the norms for manufacturing enterprises are complex so, to start, we advise you get professional consulting. We have acquired unrivaled experience in the registration of manufacturing companies. 

China is the manufacturing center of the world; its labor costs are cheap in comparison to most western countries so it is a very adequate place to produce goods that need huge amounts of labor or big scales. We are able to give you the best way to understand the complex Chinese manufacturing industry. 


Incentives provided by the Government

If you really are interested in manufacturing goods in China, you have to first register your company as a China Manufacturing Company (which are also named manufacturing WFOEs). Sometimes, the authorities might give incentives and relax taxes for overseas manufacturing companies. Keep in mind the respective regulations are complex so we highly recommend you find professional advice. We have the most extensive experience when it comes to registering manufacturing companies.

Starting a manufacturing company in China

Starting a company in China doesn’t immediately allow you to conduct any kind of business because WFOEs are only allowed to operate in activities which scope has been approved by the Chinese government. Business activities that are not allowed by the respective license must be reviewed and approved by the government so it is paramount that you decide early you’re your business range will encompass.