For companies that want greater control over the production process, but prefer to avoid the headaches associated with owning and operating a facility in China or setting up a JV with a Chinese partner, PassageMaker offers the following options.
Virtual Joint Venture (Dedicated Production Line)
On behalf of the client, PassageMaker can set up a dedicated production line inside our existing facilities. This virtual factory can fill the role of Contract Manufacturer in China.
Suitable in situations where the client’s production needs require up to 50 full-time workers. Visit “Factory in Factory” for details.
The Virtual Joint Venture (VJV) is designed to easily expand into a dedicated factory space if the project scope expands. The VJV can be converted to an Actual Joint Venture (AJV) if the client wishes to formal ownership of the production site.
Actual Joint Venture (Dedicated Factory Building)
On behalf of the client, PassageMaker will buy or lease a entire production site in China.
Suitable in situations where the client has steady manufacturing which requires more than 50 full-time workers and/or more than 1000 sq. meters of production space and/or a strong desire to legally own the facility.
The AJV can be converted to a WFOE (Wholly Foreign Owned Entity) if the client wishes to have 100% ownership of the production site. In other words, the “keys” to the AJV can be handed over to the client. This flexibility is quite unique among China manufacturing options.
Roles and Responsibilities for VJV and AJV
The client provides:
- Start-up capital
- Production training (if needed)
- Technical support (if needed)
- Equipment specs
- Material requirements
- Project Finance & Payroll
- Commitment to produce a given # of units over a given period of time
- Initial feasibility study
- Facility identification & analysis
- Job ad placements, interviews and hiring of local staff
- Equipment procurement
- Construction/decoration coordination
- Local government liaison
- Registration/tax planning (working closely with specialists to ensure entity is structured in an efficient manner)
- General management of daily operations