After all the hard work on collecting different certificates and approvals from various Chinese Government bodies, Teseq Company Limited in China – the Wholly Foreign-Owned Enterprise (so called WFOE) was officially in business on 1st October 2007. Setting up a WFOE is far a more complicated process comparing to setting up a Representative Office (like the old Schaffner Beijing office) or a Joint Venture company in China. However it also brings a greater degree of flexibility and control from management perspective.
Having a WOFE setup in China, Teseq now can handle different kind of transactions:
1. Contract with or without tax exemption,
2. Contract in Chinese local currency RMB or foreign currency such as US dollar or Euro.
3. Faster spare parts purchase and repair services since Teseq can import and stock own spare parts in China service centre.
These are some of the major benefits that could not be provided as a representative office in the past. Due to the foreign currency control in China, this make the order processing system and accounting system more complex. However Teseq China had already overcome this issue with accounting firm on developing effective accounting model in China.
Now Teseq China is moving to the stage for improving the operation efficiency. Since the official establishment of Teseq China, there are two new employees joined Teseq China team. Together with the support of Teseq GmbH and Teseq AG, Teseq China now is providing a greater competitive advantage and flexibility to China market comparing to our competitors who are still in the Representative Office form.