A US-based entrepreneur sourcing Consumer Electronics from China for sales to Walmart
USA, Canada and Mexico.
- Set up trading operations in HK, to act as the hub for logistics and trading activities on behalf of
the US entity within a short period of time.
- Have a back office of staff in HK who can work directly with suppliers in real time.
- To obtain banking facilities.
- Tax planning and tax advisory.
- Prepare the company with China corporate structures for future domestic sales expansion in
- Corporate Management Structuring Advice: Working with our client, we devised a customized
solution allowing them to sell FOB Asia, using Hong Kong as their base.
- Hong Kong Incorporation: We established a Hong Kong subsidiary of the US company in a
“virtual office” environment, to act as their international sales and marketing arm within 3 working days.
- Banking (initial set up): We set up all bank accounts required for corporate use, including those
needed for bills negotiation. As the signatory on behalf of the client, client is also able to facilitate same
day transactions, and assure that timely payments are made.
- Trade Services: We are the client’s trading back office in Asia. Our staff receive orders from their
customers, place orders to their vendors, and book trading revenue in Hong Kong.
We receive and transfer international letters of credit (L/Cs), review shipping documentation, prepare
bills for collection and negotiate the L/C’s with the banks. We also liaise with the vendor, the
customer’s buying office and freight forwarder as required to ensure timely shipments in accordance
with the terms of the purchase orders and L/Cs.
- Accounting: We prepared management accounts for the head office and annual financial
statements. Financial statements were audited in accordance with Hong Kong law.
- Taxation: We helped the client to achieve a zero-tax rating on his Hong Kong profits. We will be
responding to the Hong Kong Tax Department's queries regarding the client’s annual report.
- Trade Financing: We approached several targeted banks in Hong Kong which were most suited to
the client and engaged with negotiations on behalf of the client to obtain credit lines to increase
working capital to USD28M.
- China Structuring: We assisted the client in setting up a Representative Office in China, whereby
the client was able to start the corporate branding in China for future domestic sales with the eventual
WOFE or FICE.
The client was able to effectively sell his products to Walmart US, Canada and Mexico, selling
on FOB China terms. Upon obtaining a credit line with the nominated bank, the client was also able to
have sufficient cash to expand sales activity to other retailers in the US.
The client noticed the possibilities of selling to China domestically, and we helped the client
position their company firstly with a Representitive Office in China, hiring staff for the marketing and
quality control. A FICE was then set up in replacement of the Representitive Office to hold the
domestic sales licenses to officially be able to sell within China.