After having been present in China with a successful Shanghai Sales Representative Office for almost three years, a Klako client decided to expand their customer base by setting up a trading Wholly Foreign Owned Enterprise able to invoice in local RMB currency.

The Klako team in Shanghai mapped out all the requirements and policies for a trading WFOE. As trading WFOEs may only be set up in specific zones, the client was required to rent office space in the Waigaoqiao Free Trade Zone. In close cooperation with the client, Klako assisted with identifying suitable office space, performed a name check, prepared and submitted all the required application documents including the project proposal, feasibility study, Articles of Association, etc. Klako also made sure that all the WFOE registrations at the various authorities were submitted in a timely and proper manner. In addition, Klako tax experts prepared the application for available finance subsidies from the Waigaoqiao finance bureau to optimize the WFOE's taxation obligations. The Klako tax team also worked out favorable salary packages and employment contracts for local and expatriate staff, and is now handling the accounting, financial reporting and tax filing for the WFOE.

After the closure of the company's Representative Office, the more convenient and presentable downtown location of the Rep Office was used as a liaison office of the WFOE.