As business increased for an Australian importer, the company decided to set up a Representative Office in the Shanghai area for sourcing and quality inspection purposes. After consulting Klako Group's Shanghai office, management decided to minimize their risk by establishing a Hong Kong Holding company first, which would then hold the China investment. By inserting an additional layer of limited liability, they were able to protect their head office in Australia from any type of liability issues.

In close cooperation with Klako Group's Hong Kong headquarters, the Hong Kong holding company was set up first. Klako Group made sure that all the legal requirements in regards to the mother company of a Representative Office were met and prepared all the necessary documentation. At the same time, the Klako Group Shanghai office assisted the Australian client in finding a suitable office in Shanghai, checked the required landlord licenses as well as the lease contract and prepared the application documents. As soon as all the legal documents of the Hong Kong holding company were available, Klako Group's Shanghai office submitted the Rep Office application to the authorities in Shanghai. After receiving the Registration Certificate, Klako staff in Shanghai handled all the required registration procedures for the client's Rep Office and assisted with opening bank accounts. Klako Group's CPA's worked out a sound taxation strategy for the Rep Office and its employees, and are now handling the accounting and monthly tax filing for the Rep Office.

When the Rep Office was up and running, the client decided to utilize Klako Group's Hong Kong outsourcing services for re-invoicing purposes and is now trading all shipments from China through the Hong Kong company.