Our client is a successful manufacturer in precision tooling equipment, who is selling to international market leaders. His customers established entities in China, and he was forced to sell to their China based entities. Through this, they saw the opportunity to also approach other China based factories and expand their customer base. One challenge they started to encounter was, that more and more, the customer required experienced engineers for the installing of the equipment and other after sales services.

With the initial intention to set up a Wholly Foreign Owned Enterprise in China, the customer approached Klako.

After discussing the requirements and plans with the customer, Klako tailor made a solution for the customer, which would not only require much less capital injection, but also present a much more tax efficient structure: the set up of a Hong Kong company, completely outsourced to Klako with no fixed cost, and establishment of a Representative Office in Dongguan where Chinese national engineers would be based to conduct the sales negations and after sales services.

Klako's comprehensive headhunting service identified qualified candidates within the appropriate industry sector by focusing on research, intense sourcing and a targeted approach. Candidates were generated from advertising, in local, regional and international media, as well as Klako's comprehensive database of candidates, and through an extensive network in the market.

Our customer chose three individuals, who were sent to the head office for training. In the meantime, Klako set up the entity in Hong Kong, and the Representative Office in Dongguan.

To date, the individuals have successfully acquired new customers and provided after sales services to existing customer, adding a demanded additional value to the company. Klako's professional trade and logistics department handles all trade and logistics administration for the Hong Kong entity, as well as handles money transaction. Klako's experienced accounting teams manage the accounting and tax filing in Shenzhen, accounting and tax filing in Hong Kong, as well as consolidating the monthly reporting to the head office.