eu sme centre webinar - find the right chinese partner - prelimiary due diligence

8/13/2019 EU SME Centre Webinar - Find the Right Chinese Partner - Prelimiary Due Diligence

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WELCOME TO THE

EU SME CENTRE

A project funded by the European Union

Raise your handif you can hearme!

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http://www.eusmecentre.org.cn/http://www.eusmecentre.org.cn/


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Please continue tosubmit your textquestions andcomments usingthe QuestionsPanel

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Purpose and expertise

Support EU SMEs to establish, develop and

maintain commercial activities in the Chinese

market

Free, confidential information and advice, andpractical support services

An office in Beijing with an experienced multi-

cultural team of 15 persons
http://www.eusmecentre.org.cn/http://www.eusmecentre.org.cn/http://www.eusmecentre.org.cn/


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Enquiries

Find the answers for all of your questions!

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MarketAccess Services

Training, seminar & webinars

Publications

Hot-desks: free, temporary office space in

the EU SME Centre to explore localbusiness opportunities
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Ludmila Hyklova, lawyer,

spent several years in China

as Head of legal and

compliance for a large EU

privately owned financial

group. She has first hand

experience with business

start ups, foreign investment

and has provided legal

advice on various Chinarelated business strategies.

Our Speaker

PRELIMINARY DUE DILIGENCE

ON BUSINESS PARTNER

AUGUST 2, 2012

A project funded by the European Union


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The 5 steps of Preliminary Due

Diligence

1. Ask for the Business Licence!!

2. Is there a Company Chop?

3. Verify the other mandatory documents!

4. Get information of their financial status

5. Check the company operations

In Todays Webinar

Who can be your Partner

Importer

Distributor

Supplier

Agent

Landlord of your

office

JV Partner

Service provider

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Majority of Chinese companies are honest

and willing to develop sustainable business


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1. Know what is available

Business Licence

Special Permits

Land Use Rights

Right to usepremises

IPR ownership

certificatesCompany Chop

Creditworthiness

Letter

Financial Statement

Capital Verification

Report

Bank account details

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Legal Status Financial Status

2. Ask for the Business License!!


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Business License for Corporation Legal PersonRegistered No.: 4xxxxxxxxxxxxx2

Name Yong He Consulting Service Co., Ltd.

Address Unit 2-8, 10/F xx Building, Fuhua Road, Haidian District, Guangzhou, Guangdong

Legal Representative Lao Wang

Registered CapitalRMB 2,000,000

Paid-up Capital RMB 2,000,000

Type of Registration Limited liability company

Scope of BusinessCommercial consultancy and corporate management consultancy;Information and business process, sub-contracting services such as system applicationmanagement and maintenance, information technology support and management, financialsettlement, software development

Shareholder He Yong Limited

Term of Business: January 18, 2007 to January 18, 2057

Date of Establishment: January 18, 2007

Passed 2012 Annual Inspection Registrar: Guangdong Administration for Industry &Commerce (Seal)



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Can be checked onAdministration of Industry

and Commerce (AIC)websites and at local

AIC branch*

www.saic.gov.cn

http://www.saic.gov.cn/ywbl/zxcx/djqyxxcx/index.h

tml

http://www.saic.gov.cn/http://www.saic.gov.cn/ywbl/zxcx/djqyxxcx/index.htmlhttp://www.saic.gov.cn/ywbl/zxcx/djqyxxcx/index.htmlhttp://www.saic.gov.cn/ywbl/zxcx/djqyxxcx/index.htmlhttp://www.saic.gov.cn/ywbl/zxcx/djqyxxcx/index.htmlhttp://www.saic.gov.cn/


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3. Is there a Company Chop?

Company Chop

NAME must be SAME as on business licence;

Equals to signature of person authorized to sign

on behalf of the company in Europe

4. Verify the othermandatory documents!

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Landlord of your office

Ownership certificateis the office allowed to be rented for commercialpurpose?

On Importer

Import licence for the goodssome type of goods can be subject to licence

Supplier

Special permit for manufacturing the product

Report from Quarantine and Commodity Inspection Bureau when exporting

from China Distributor

Distribution permitfor certain products a special distribution permit isneeded eg. food

Service provider

Permit for the specific service


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Land Use Right Property Ownership

4. Verify the other

mandatory documents!

Special Permit for Food Distribution

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4. Verify the othermandatory documents!


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Quick Tips

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DO NOT Too smooth? Fast? Considerably cheap than market

average?Do not engage!

DO NOTICE

Bank accountis the name same as in the contract? Is theaccount number same in all invoices?

Websites?

Fixed phone line? Try call a few times.

Email address company one or is it @163.com,

@yahoo.com? Communication style, is it changing?

Contact person, is it changing ?

Remember

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5 Steps of preliminary due diligence:

Business Licence

Company Chop

Mandatory Certificates/Licences

Financial Status

Company operations

Personal visit and keep continuous contact

Do not rush

Ideally have a trusted person in the spot

Local professional advice


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Be Aware

Be up to date about the Chinese market withthe EU SME Centre:

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eu sme centre webinar - find the right chinese partner - prelimiary due diligence

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