BDO s. Setting up a business in China can. BDO China unlocked

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china unlocked

BDO China unlocked BDO s expertise and international reach Over the last two decades China has firmly put itself on the map as a country in which to invest, to date mainly for Manufacturing and Consumer Products. Going forward a more knowledge based economy is taking shape and China s fast economic growth looks set to continue. China promises a vibrant and exciting market fuelled by accession to the WTO, sustained global economic interest and the Chinese government s plan to continue a steady and more balanced growth. The region presents many opportunities for foreign companies to achieve substantial international expansion. Together with our BDO Member Firms in the Greater China Region, we provide a comprehensive range of services to assist you through your planning and implementation stages to ensure that any operational issues in China are anticipated and addressed. Setting up a business in China can be daunting given the differences in culture and the regulatory environment. BDO can help.

BDO China unlocked_german version 04/04/2012 16:55 Page 4 BDO China unlocked THE ROADMAP TO INVESTING AND OPERATING IN CHINA BDO S EXPERTISE AND INTERNATIONAL REACH Over the last two decades China has firmly put itself on the map as a country in which to invest, to date mainly for Manufacturing and Consumer Products. Going forward a more knowledge based economy is taking shape and China s fast economic growth looks set to continue. China promises a vibrant and exciting market fuelled by accession to the WTO, sustained global economic interest and the Chinese government s plan to continue a steady and more balanced growth. The region presents many opportunities for foreign companies to achieve substantial international expansion. Together with our BDO Member Firms in the Greater China Region, we provide a comprehensive range of services to assist you through your planning and implementation stages to ensure that any operational issues in China are anticipated and addressed. SETTING UP A BUSINESS IN CHINA CAN BE DAUNTING GIVEN THE DIFFERENCES IN CULTURE AND THE REGULATORY ENVIRONMENT. BDO CAN HELP. YOUR ORGANISATION S CHINA STRATEGY WHY CHINA? Given its increasingly important role in the global economy and huge growth potential, China is firmly on the strategic map for businesses aspiring to succeed in the international arena. BDO will assist you with your strategic planning and challenge your current thinking. We work with our clients to provide practical and pragmatic commercial advice, helping to establish a clear vision, and formulate and execute short, medium and long-term business strategies in China. MARKET ANALYSIS INVESTMENT VEHICLES IMPLEMENTATION WHAT ASPECTS DO I NEED TO CONSIDER? Regulatory environment, licensing restrictions, demographics, investment incentives, risk analysis and location analysis are the main areas to consider when investing or operating in China. WHAT OPTIONS DO I HAVE? There are a range of business structures to consider such as merger, acquisition, joint venture, wholly foreign owned entity, representative office, branch and franchising. BDO will conduct or manage tailor-made market analysis to provide a clear view of the potential opportunities and pitfalls your strategy presents and how to adapt your plans to maximise your chances of success. BDO provides advice on the most suitable structure for entry into China, taking into account factors such as your aspirations, market analysis, your financial and operational processes and protocols, and your attitude to risk. WHAT HURDLES DO I NEED TO OVERCOME TO SUCCESSFULLY IMPLEMENT MY STRATEGY? This will involve several different stages from finding the right partner, assisting with negotiations, due diligence, obtaining relevant government approvals, company registration and post deal integration. TAX SERVICES FINANCE AND ACCOUNTING OPERATIONAL ISSUES HOW DO I MAKE SURE THE TAX STRUCTURE IS OPTIMISED FOR MY BUSINESS? You need to consider areas such as foreign exchange, corporate income tax, customs duty, and VAT planning, profit repatriation, compliance, employee incentivisation, employee taxes and the impact on your overall international tax profile. WHAT CORPORATE FINANCE AND ACCOUNTING FUNCTIONS CAN I OUTSOURCE? You may wish to outsource book keeping, preparation of company reports, tax, accounting and regulatory compliance, system selection, implementation and training. WHAT OTHER OPERATIONAL CONSIDERATIONS ARE THERE? A range of issues need to be managed properly for the efficient operation of the business including office set-up, recruitment and development, management control, and supply chain management. BDO advises on international tax planning including the interpretation of the Chinese tax system and its impact on your business and plans. We can also help you to structure an efficient remuneration package for your key executives and keep up to date with your compliance matters. BDO Member Firms in China are well established in providing accounting, compliance and reporting services to a range of sectors and businesses. Consultation and training in reporting systems in China can also be provided. In addition to project management support, BDO is able to introduce you to the right advisers for your needs, be they German or China based, professional advisers, regulators or government representatives. BDO advises on management control, staff development, and international supply chain management (eg international procurement and outsourcing). We can introduce you to other professional service providers such as logistics businesses and recruitment agencies.

BDO China unlocked BDO s European China Desk BDO s European China Desk, with both European and Chinese nationals, has substantial commercial knowledge and expertise in establishing, structuring, and operating a business in China. We provide the strategic, operational, accounting and technical guidance necessary to ensure the successful design and implementation of your China strategy by: Working with you to ensure your strategic plan reflects the view of the business as a whole Sharing information, experiences and knowledge about the China market place Tailoring our advisory, planning and compliance services to your needs Adopting a flexible approach to working alongside you in getting your business operations up and running in China Serving your ongoing business requirements by working seamlessly with our teams in both Europe and China.

Contact us For further information or advice on how we can help you please contact: Dr. GEBHARD ZEMKE TIM SICHTING WP StB Partner European China Desk BDO International Standortleitung Wirtschaftsprüfung Tel: +49 40 30293 532 Tel: +49 40 30293 525 Fax: +49 40 30293 570 Fax: +49 40 30293 120 Mobile GER: +49 170 4288 061 Mobile: +49 170 4277 270 Mobile CHN: +86 1825 048 9978 European China Desk core team Kim Hayward Tim Sichting kim.hayward@bdo.co.uk tim.sichting@bdo.de +44 (0) 23 8088 1897 +49 40 30293-532 Wilbert Romijn Li Deng wilbert.romijn@bdo.nl li.deng@bdo.co.uk +31 (0)10 24 24 600 +44(0)1293847806 Fiona Fischer European China Desk Administrator Fiona.fischer@bdo.co.uk +44 (0) 20 7893 2712 The European China Desk comprises core and extended teams of individuals who have a passion to work with China. Members of the team have Chinese client experience and some are ethnic Chinese individuals who are fluent Mandarin speakers and all have a deep cultural awareness and an enthusiasm to work on cross-border client work with China. BDO International is the world s fifth largest accountancy network with more than 600 offices in over 100 countries. BDO International is represented in the Greater China Region with locations including: Beijing, Dalian, Tianjin, Changchun, Nanjing, Suzhou, Shanghai, Hangzhou, Xi an, Chengdu, Chongqing, Wuhan, Changsha, Ningbo, Fuzhou, Xiamen, Zhuhai, Shenzhen, Guangzhou, Kunming, Hong Kong, Taipei. www.bdo.de BDO International Limited is a UK company limited by guarantee. It is the governing entity of the international BDO network of independent member firms ( the BDO network ). Service provision within the BDO network is coordinated by Brussels Worldwide Services BVBA, a limited liability company incorporated in Belgium with its statutory seat in Brussels. Each of BDO International Limited, Brussels Worldwide Services BVBA and the member firms is a separate legal entity and has no liability for another such entity s acts or omissions. Nothing in the arrangements or rules of the BDO network shall constitute or imply an agency relationship or a partnership between BDO International Limited, Brussels Worldwide Services BVBA and/or the member firms of the BDO network. 2012 BDO International Limited. All rights reserved.