Sinordica Business Development

Sinordica
Business Development

Business development

Establishing your business in China

In this service area we help you establish your business in China weather it’s a joint venture, foreign investment or a representative office.

Market research and analyses

Making a thorough research on the potentials of the market you are interested in is a necessary start. We bring you the whole picture, giving you a complete information on the issues of importance . Following topics get covered in our research:
• Industry characteristics
• Target Markets
• Business Potential
• Competitors
• Benchmarking
• Future trends
• Local Differences
• Government regulations
We tailor our research to meet your specific needs, so you can feel comfortable when making the big decisions.

Your needs and operations

One of the first things to do is to help you build yourself a clear picture of what is your goal of entering the Chinese market. What image do you want to build up and which market segments do you want to approach? What are the most important issues on logsitics, quality and leadtimes in marketing channels? How much controll do you need over the doings of your business partners in China?

In short we assist you in developing objectives and evaluating your chances for establishing a successful business in China!

Cost analyses (budget)

The best way of gaining knowledge of all the aspects of starting business in China is through a cost analyses. We go through your needs in details to find out what they will cost as well as what work effort is needed to realize them. Not least, this will reveil potential risk factors to be alert of.

Business/market forecasts

You need to make forecasts on how your revenues as well as costs will develop in foreseenable future. We use sensitivity analyses for making you aware of and be prepared for the consequences of different scenarios. There is a need to evaluate your break through points as well as your exit options.

Market research on potential business partners

Before realizing your plans you need to research on business partners. Can you find the right:
• Subcontractors
• Accounting firm
• House of attorney
• Call center
• Distribution channels

Establishing relations with relevant government bodies

It is of crucial importance to establish good relations with the right authorities at early stages. There is quite a lot of administrative work and having the right relations with authorities gives you a huge advantage:
• The work gets done faster
• Access to all advantageous options for you as an foreign company
• Early and adequate information on actions to come (tax reforms, urban infrastructure, city planning etc.).

Form of legal entity

You can either register your existing company to do business in China, setting up a single representative office, or form a new Chinese business entity, such as a joint venture or a foreign investment. As a foreign owned company in China, you are limited to certain geographical areas for your offices/production facilities. Further, you are expected to be knowledgeable of, and comply with, applicable governmental regulations. Following is to be considered:
• The type, capitalization and internal structure of your business
• Obtaining necessary business licenses, certificates etc.
• Domestic and international tax planning
• Choosing the right location
• Mark leasing
• Staffing

Organizing events, visits etc.

You have to secure relations with your Chinese potential partners on a personal level. We organize delegations to and from China. We are there to help you set up the agenda and offer you activities for creating the right atmosphere. In such matters we cooperate with the best partners possible here in the Nordic.

Contract negotiations

There are a number of contracts to be formulated, covering areas such as:
• Mark and real estate leasing
• Employment
• Business relations with partners
• Formation and registration of your legal entities in China

You should be particularly cautious about potential conflicts between Chinese language and foreign language versions of the same contract. We help you in avoiding potential legal pitfalls as well as securing the communication between all contractors. Following issues must be resolved:
• Obtaining appropriate business licenses for planned activities
• Legal adequacy of contract documents
• Arbitration clauses
• Performance monitoring

Licensing of Technology, Know-how and Intellectual Property

Chinese companies are extremely active in acquiring technology from overseas and incorporating it into other products or manufacturing processes. This presents special factors to consider in your risk management. We equip you with the ability to monitor the use of licensed technology, know-how, and intellectual property. To prevent future conflicts, those issues must be covered extensively in the contractual obligations.

Other legal Issues

The Chinese business regulatory system is adapting to western standards, but nevertheless remains challenging to outside business interests. Typical legal compliance considerations include:
• Dealing with appropriate governmental agencies at the Central, Provincial and Municipal levels
• Domestic and international tax planning
• Resolution of business/legal disputes
(se http://www.goldentianjin.net.cn/EN/policy/default.htm)

Setting up your Financial, Banking & Accounting Services

Handling financial and banking routines (payment tarnsactions ect.) as well as accounting routines in secure way is a critical component of your business, particularly in the area of import-export operations.

Freight and Storage

We maintain a close cooperation with a number of air freight, shipping and third part companies and are able to help you find the best of price, deliveries on time and handling of your goods. When choosing a freight/third part partner, we pay special attention to following:
• Presence and knowledge of the local market.
• Ability to handle materials flow with smart solutions including having alternatives for storage.
• Capability of helping with customs clearance, quick and proper investigation of insurance issues as well as other administrative tasks.

Insurances and Risk Management

International business operations are rarely undertaken without risk. Political, business, legal, and mother nature contingencies must all be taken into account in managing risks effectively. We maintain excellent relations in the Chinese insurance industry, and provide risk assessment, insurance procurement, and claim services.

Recruitment on-site

Recruiting the right personnel is time consuming and often requires some language and cultural understanding. Quite often you have to go through the local authorities in your recruitment process. In addition, there are numerous labour market programmes financed by the authorities. In short, we help you find right in your recruitment activities.

Trust Services. Anonymity

We provide confidential, professional services under powers of attorney. This includes:
• document handling
• financial transactions
• Acting your agent when negotiating or doing research on business partners.
• Acting as your staff in some other situations.
Using us under powers of atorney could be a powerful cost reducing tool. Ultimately we are here to solve your problems.

Projects in China

Chinas economy is in the state of transition. The state is putting a great effort in their programme for developing the inland. Currently the govermnet is subsidizing different projects to improve infrastructure, basic industries as well as industries based on local resources. For that reason, foreign investments are welcomed. Many of the projects are in the area of construction work, process industries, food processing etc. With a long tradition in mensioned areas, the Nordic countries are in many cases the perfect business partner to help building up the Chinese economy.

In our databank there are thousands of prospects for projects in China. The Chinese part is often looking for a business partner from abroad for transferring of know-how, management skills etc. on mutual benefit bases. We help you to access and evaluate the projects of your interest. We help you even with tender offering on the projects you are interested in:

Analyses of existing projects

We can provide you with detailed prospects for projects withing your area of interest. A prospect gives you excellent information on following aspects:
• The profile of the project including size, location, background, existing infrastructure, SWOT-analyses etc.
• Market forecast for the output of the project. Product price analyses
• Technological solutions including power, water supply and environmental protection issues
• Project Implementation Scheme
• Organization Structure and Manning
• Investment needs and profitability analyses
• Risk factors and countermeasures
• Options on cooperation forms

Matching of your profile and the projects requirenments

There is a need for matching your aspirations and abilities with the projects’ requirenments and prospects. The matching process results in a short list of projects of interest as well as a list of questions to fill the information need for each of the projects.

Establishing dialogue/relations with project initiators

Next step is to establish a dialogue with key persons of the project in China. A lot of questions have to asked and answered before moving on. Partly, the goal is to data for setting up a cost analyses and identifying your risk factors.

Establishing relations with relevant government bodies

Business/market forecasts

You need to make forecasts on how the projects revenues as well as costs will develop in foreseenable future. We use sensitivity analyses for making you aware of and be prepared for the consequences of different scenarios. There is a need to evaluate your break through points as well as your exit options.

Deciding upon a short list. Making a tender offer.

At this stage there is all necessary information to decide upon what project/s you are interested in. The preparatory work for your tender offer starts. This includes engaging your internal organisation.

The process of formulating your tender offer includes:
• Formulating and stressing the qualities making you most suitable as a project partner.
• Preparing answers to questions from the project initiators.
• Lobbying among government bodies in China.
• Formulating a budget and a project implementation scheme.

Organizing events, visits etc.

Negotiating

At this stage we can tell you what your chances are to win the tender offer. In addition, the negotiating process helps to evaluate the projects in respect to profitability, risk factors as well as creating a clear picture of what form of cooperation is most suitable.

Contract signing

Much of the contract issues get specified in the tender offer. Nevertheless there is the fine print left. You should be particularly cautious about potential conflicts between Chinese language and foreign language versions of the same contract. We help you to avoid potential legal pitfalls as well as securing the communication between all contractors. Following issues must be resolved:
• Formation and registration of corporations, partnerships, and joint ventures
• Obtaining appropriate business licenses for planned activities
• Legal adequacy of contract documents
• Arbitration clauses
• Performance monitoring

Licensing of Technology, Know-how and Intellectual Property

Other legal Issues

The Chinese business regulatory system is adapting to western standards, but nevertheless remains challenging to outside business interests. Typical legal compliance considerations include:
• Dealing with appropriate governmental agencies at the Central, Provincial and Municipal levels
• Domestic and international tax planning
• Office leasing and staffing in China
• Resolution of business/legal disputes (se http://www.goldentianjin.net.cn/EN/policy/default.htm)

Setting up your Financial, Banking & Accounting Services

Freight and Storage

Insurances and Risk Management

Trust Services. Anonymity

We provide confidential, professional services under powers of attorney. This includes:
• Document handling.
• Financial transactions.
• Acting your agent when negotiating or doing research on business partners.
• Acting as your staff in some other situations.
Using us under powers of atorney could be a powerful cost reducing tool. Ultimately we are here to solve your problems.