Replies to post #969 on Redwood Group International (RDWD)

[scoobey-do]

Sloth, That was a excellent link regarding the WOFE. It appears that a WOFE is the best way for S3 to proceed with their Inter Medical business dealings. Thank you.

The following is copies from your link:

ADVANTAGES OF WOFE

The advantages of establishing a WOFE include:

(1) Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner;
(2) Ability to formally carry on business rather than just a representative office function and capable of issuing invoices to their customers in RMB (Chinese Currency) and receive revenues in RMB;
(3) Capable of converting RMB profits to US dollars for remittance to their parent company outside China,;
(4) Protection of intellectual know-how and technology;
(5) Greater efficiency in its operations, management and future development.

[scoobey-do]

I was wondering why SINO could not use the WOFE that was already set up for GenCon but that answer is also in Sloth's link:

BUSINESS SCOPE

One of the most important issues covered in the project documentation is the business scope of the WOFE. Business scope is narrowly defined for all businesses in China and the WOFE can only conduct business within its approved business scope, which ultimately appears on the business license. Any amendments to the business scope require further application and approval. Inevitably, there is a negotiation with the approval authorities to approve as broad a business scope as is permitted.

http://www.bycpa.com.hk/e/info/china/WFOE.htm