Loading...
Sales Office 2018-05-24T18:22:51+00:00

Sales Office Creation

Cost-effective market entry at low risk

The creation of a sales office involves three parties. The foreign company, the company’s representative and the local partner or also known as PEO (Professional Employment Organization). The PEO act as a subsidiary, and, therefore, enables the foreign company to perform business activities in China. Furthermore, the foreign company must decide where to locate its office. 

The foreign company decides what type of rental is best to establish the sales office, the geographical location and the size of the office, but these aspects do not alter the employee’s legal or administrative situation. This type of local structure requires an in-country presence of at least one employee. The main objective of a sales office is settling an enterprise in China via its representative without any financial or legal hurdles.

It is the foreign enterprise’s role to install its employees in China in the best conditions in order to facilitate the company’s growth and satisfy the local needs (client proximity, suppliers and partners, local team diversification, etc…)

Keypoints

  • Well-fitting structure to sell services and to enhance sales of goods.

  • Flexible in chosing the right location in regards to the scope of activity.

  • No minimum capital investment required.

  • Shortest establishment procedure compared to WFOE, Rep. Offices or JV.

  • Lowest taxations compared to any other structure. 

What Are the Conditions?

  • A sales office does not entail any obligations during the establishment phase besides the representative’s presence in China.

  • No financial input is required other than the office rental. INS also provides office rental solutions in Shanghai. 

  • The sales office cost is composed of the representatives’ salary, office rental and facilities, and management fee of the representative’s employment services.

  • All funds and benefits are directly transferred out of China. The funds kept in China are administrated by the administrative partner.  

China Market Entry Vehicles

Have a broader perspective on China’s market entry vehicles

WFOE

Setup time

3 – 6 months

Commercial activity type

Direct (by WFOE)

Administrative task

High

Hiring capacity

Medium

Incorporation cost breakdown

Enterprise + Office + Staff
See More

SALES OFFICE

Setup time

0 – 1 month

Commercial activity type

Indirect (by local partner)

Administrative task

Low

Hiring capacity

High

Incorporation cost breakdown

Office + Staff
See More

REP. OFFICE

Setup time

2 – 6 months

Commercial activity type

Indirect (by local partner)

Administrative task

High

Hiring capacity

Medium

Incorporation cost breakdown

Enterprise + Office + Staff
See More

JOINT VENTURE

Setup time

3 – 12 months

Commercial activity type

Direct (by JV)

Administrative task

High

Hiring capacity

High

Incorporation cost breakdown

Enterprise + Office + Staff
See More

GOT A QUESTION?

We’d love to help. Call us at (+86) 21 6045 2377 or fill in the form below. 

Tell us about your project

Contact Us