Start-Up

A start-up in Asia is a four phase program. Each phase has several steps or “boxes to check,” and SEAMOC provides services at each step in each of the four Phases of the program to establish manufacturing operations in Asia.

Phase 1 — The Planning Phase

– Choosing a country / understanding criteria
– Choosing an industrial zone / understanding criteria
– Choosing a Limited Liability Foreign Entity
– Transfer pricing strategy and plan
– Direct selling to customer strategy and plan
– Import Duty strategy and plan
– Export Duty strategy and plan
– Logistics strategy and plan
– Corporate income tax strategy and plan (Asia)
– Corporate income tax strategy and plan (United States)
– Vat tax strategy and plan

Phase 2 – Visiting the Country / Establishing Relationships

– Establish a relationship with an Asian law firm
– Establish a relationship with an Asian accounting firm
– Establish a relationship with an Asian or US Bank
– Negotiate building lease or purchase agreement
– Apply for business / investment license / Permits
– Complete schedule for phase 2 implementation to include:
Legal completion procedures for legal entity
Lease of site or factory purchase
Commencement or factory renovation
Installation of equipment
Key manager hire dates

Phase 3 — Start-up of Manufacturing

– Write job descriptions for all jobs
– Hire a local General Manager or General Director
– Create a detailed operating start-up plan to include:
Factory layout and “fitting out” plan for factory
Process Flow Chart and Factory Flow Chart
All Quality, Process and Product Design Documentation
Employee handbook in compliance with country laws
Logistics and timing for equipment and raw material
Hiring plan that includes training program
Determine pilot production date and staffing
Plan the necessary support from the U.S.
Determine Chart of Accounts and ERP System requirements
Plan for ERP and financial control implementation
Understand all customs issues and documentation
Hire an Administration Manager.
Understand China or Vietnam accounting rules
Hire a Chief Accountant or CFO.

Phase 4 — Full Manufacturing

– Implement plan to increase to full volume production
Hire complete salary staff per plan and organization chart
Supply raw material necessary to support plan
Hire and train production personnel to support plan
Track daily productivity, efficiency, yields, and quality
Report daily to U.S. on top five yield, efficiency and quality issues
Report daily to U.S. on top five productivity issues
– U.S. Headquarters to review daily reports and support questions with answers on a daily basis.