An overseas manufacturer with clients worldwide planned to expand into China and establish a factory in Southern China. After discussing the advantages of a Hong Kong holding company with Klako Group consultants, management decided to set up a Hong Kong holding company to benefit from the preferential tax treatment and the additional layer of limited liability. While Klako Hong Kong set up the holding company, the Klako team in Southern China performed a location analysis including cost of land, building, labor, utilities, taxation, suppliers, etc. Based on this information, the client chose the location and, with the assistance of Klako, found suitable premises to rent. At the same time, Klako registered the client's trademarks in Hong Kong and China, so that the client's intellectual property would be protected. In order to speed up the incorporation process, Klako experts prepared the application documents for the Wholly Foreign Owned Enterprise in advance, so that the application procedures could start immediately after the Hong Kong company was set up. During the WFOE set up process, Klako recruitment specialists interviewed and shortlisted suitable candidates for the positions of General Manager and Operations Manager - based on the client's specific requirements. By the time the WFOE was set up, the client had a reliable factory management in place. The company's patents and trademarks were transferred to the Hong Kong company, which now receives all license fees and royalties tax free. All shipments to countries outside of China are being invoiced through the Hong Kong entity and only 50% of those profits are taxable in Hong Kong. In order to save on overhead expenses, all administrative and shipping functions in Hong Kong are being managed by Klako professionals. Klako tax experts in Hong Kong and China are handling the accounting, financial reporting and tax filing for both the WFOE and the Hong Kong company. The WFOE in China is preparing to repatriate the first round of dividends to Hong Kong - tax free - and the client has already made plans on how to further invest these profits to expand the business in Asia.