Two entrepreneurs in the textile industry established a good relationship with the product manager of one of their suppliers. They decided that this individual would be a perfect partner for their own manufacturing entity in China.

Klako Group assisted the customer to negotiate the joint venture agreement, draft the contracts and find the right location for the entity. The Chinese partner at this stage did not own an entity, nor had he the means to set up an entity. Therefore Klako negotiated with the local government of Kunshan, outside Shanghai, where a Joint Venture was allowed to be set up with the Chinese National being an individual shareholder, something not possible in many locations at this particular time.

The next challenge was that most factory locations were too large for the small start up operation planned. Klako’s personnel managed to secure a location already occupied by two other smaller factory operations and negotiated with the officials that the factory buildings could be acceptable as a registered location although the space was to be rented out to three different parties.

Klako then assisted in drafting and submitting all application documents and followed-up with all registration procedures including the bank account opening so operations could begin.

Klako is still involved in regular internal audits, with reporting to the foreign investors.