ChinaFIG - Exit Strategy - China Consultants on Investments and Policies
Exit Strategy
Like every where in the world, foreign investors are normally given a warm welcome to a country or a city. This occurs particularly in China, with the booming economy. However, this makes the foreign investors, especially SMEs which do not have experience in investing overseas, focus on how to enter the market.
As a professional firm, we strongly advise foreign investor to also think of the exit strategy, before injecting capital. To exit from this market is much more difficult than to enter it, from both a time and money perspective. Take Representative Office (RO is the simplest structure) as an example. To establish a RO normally takes 2 to 3 months. To close an RO however, will take a minimum 3 months and easily take up to as long as one year. Additionally, the costs for the investor in the closing process will be much higher than the set up process.
ChinaFIG consultants provide advice in exit strategy from China in consideration of, but not limited to, the investment strategy, Merger & Acquisiton plan, Joint Venture structure, PRC laws, local tax bureau regulations and requirements on the exit.