How does my company establish its own sales structure in China?
Here are some ways:
Establish a sales team through PTL Group. PTL will manage all the tasks surrounding sales operations
so your team can focus purely on the sales from day 1 in China.
Representative offices are used to promote business, establish contacts and create an environment to
close sales. They do not generate income according to Chinese law. You pay approximately 10% tax on
its expenses.
WFOEs (Wholly Foreign Owned Enterprises) allow you to fully trade and store goods in China, as well
as assemble and produce locally. Set up time is 6 to 12 months. You are allowed to issue VAT-invoices. Running a WFOE involves recruiting at least 3-4 experienced managers. It is recommended to establish
an on-going mature sales or operations team in China before setting up a WFOE.
Why do I need a full structure to support a sales manager?
Renting offices, finding and hiring staff, and securing import and logistic procedures often end up consuming most of the manager’s attention. PTL recommend the support of local management and financial departments for these tasks and for approving expenses, controlling contracts, issuing invoices and collecting money. Your sales manager can then focus on sales. Importantly, most Chinese sales managers lack general managerial skills but are experienced in sales.
PTL Group does not offer marketing in China but does recruit and employ sales and marketing staff. PTL has recommended partners if further marketing services are required.
Legally, you must have an entity with VAT-rights to issue RMB-invoices in China and to get the VAT refund. For alternative solutions or for an evaluation of your specific needs please contact PTL Group.
