Structuring Business Operations in Hong Kong & Mainland China

Two Brazil-based partners approached us with the goal of establishing business operations in Hong Kong and Guangzhou, China. Their objectives were to create a low-maintenance structure, ensure compliance, and hire a local employee in China to handle sourcing, inspections, and supplier coordination.

Determining the most efficient structure for two foreign shareholders residing in Brazil.

Balancing international trade settlements with local sourcing and quality control.

Ensuring compliance across jurisdictions while keeping operations cost-effective.

Supporting the first local hire in China.

We designed a dual-entity structure:

Hong Kong entity – functions as the main trading and settlement hub, taking advantage of Hong Kong’s efficient banking and lower tax rate.

Guangzhou entity – operates as a supply chain support company, focusing on sourcing, inspections, and quality control.

Key considerations included:

Keeping profits in Hong Kong where tax rates are lower.

Designing fund flows that align with supplier compliance and transaction requirements.

Providing ongoing advisory services to review and optimize the structure annually.

Offering recruitment support for the client’s first local employee in China.

Clear separation of trading and operational functions between Hong Kong and Guangzhou.

Transparent and compliant fund flows that support smooth supplier payments.

Optimized tax position with profits retained in Hong Kong.

Practical solution for sourcing and quality control through a local Chinese entity.

Tailored HR support for the client’s first hire in China.

Looking to start your journey in China? [Contact us] today and let us design your own end-to-end setup plan.