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The Indian auto industry is booming and global automakers are taking advantage of the situation. Aside from being a growing market for automobiles, the country is fast becoming the favorite of car manufacturers in terms of sourcing auto components. Toyota and Nissan have already expressed their plans to purchase auto parts made in India. And recently, another carmaking company announced that they will be looking to buy more auto components in India.

  1.2 Foreign Enterprises
  The application procedures for the establishment of foreign enterprises are more simple.

The time limit for the approval of applications for the establishment of foreign enterprises is as follows: The approval organ must give a written reply within 30 days after receiving preliminary application from the foreign investor and decide whether or not to grant approval within 90 days (for Guangzhou and Shenzhen, 15 working days) as from the day all documents required for the formal application are received.

For foreign enterprises, the date of the issuance of business licence is the date of their incorporation. The foreign investor may appoint an FIE service company or other economic organisations to handle the application procedures, but a power of attorney must be signed.

Application Procedures for Establishment of Foreign Enterprises

Step 1: Submission of Preliminary Application

The foreign investor of a foreign enterprise should submit a report to the foreign trade and economic cooperation department at county level or above at the place where the proposed enterprise is located.

Content of report: Objectives of the foreign enterprise, business scope, scale of operation, products to be produced, technology and equipment to be used, land area required, conditions and quantities of water, electricity, gas and other forms of energy resources required, and requirements for public facilities.

Step 2: Submission of Formal Application

After the foreign investor receives a written reply from the relevant government authorities, a formal application supported by all the required documents should be filed with the local foreign trade and economic cooperation department at county, municipal or provincial level.

Documents required: Application letter for establishing the foreign enterprise; feasibility study report; articles of association; list of legal representatives (or board of directors); foreign investor's legal papers and credit report; list of materials to be imported; written replies from the local approval authorities at county level or above; application for registration of the name of the enterprise approved by the provincial or municipal administration for industry and commerce; comments on the project by various government departments such as environmental protection, fire services, health and land administration. In case where two or more foreign investors are involved, copies of the contracts signed by them should be submitted to the approval authority for the record.

Step 3: Application for Approval Certificate

After the formal application is approved, the foreign investor should apply to the foreign trade and economic cooperation department at county, municipal or provincial level for an approval certificate by presenting all the necessary documents.

Documents required: Application letter for establishing the foreign enterprise, feasibility study report, articles of association and list of board of directors.

Step 4: Registration

Upon collection of the approval certificate, an application for business licence should be filed with the provincial or municipal administration for industry and commerce within 30 days. Subsequently, the enterprise should complete such procedures as applying for official seal and enterprise code, opening bank account, and registering for tax payment and customs declaration with the local public security, technical supervision, taxation, Customs, finance, foreign exchange administration, banking, insurance and commodity inspection departments.

 

Global sourcing of products in a low-cost region is a waste, if the logistics cost or process to get the company products out of that region counterbalance the product cost savings. Global sourcing requires an in-depth analysis of a company's logistics set-up梐nd that's exactly what consumer appliance giant- Electrolux has done.

When Hans Straberg was the CEO of Sweden-based Electrolux in 2002, the company was dealing with severe competition and price pressure in its primary markets. Straberg lay down four chief priorities for the company i.e. brand building; product growth based on buyer insight; internal talent development; and improvement in operational efficiency to reduce costs. Thus, global sourcing of materials to support those industrial unit goods came into view as Electrolux planned to give importance and put their stake on low cost countries like China. Consumer products maker Electrolux thus began a major manufacturing shift to low-cost regions including Mexico and Eastern Europe and establishing new production capacity in Asia.

But, the increased global sourcing would tend to increase the company's on the whole logistics costs, so to make sure those costs were managed effectively, Francois Van Caeyzeele 杢he purchasing head of Electrolux instigated a deep-dive project to review the company's logistics net in Asia. Leading that deep-dive was Mr. Amit Kumar, who was the head of logistics services for Asian Global Sourcing and International trade. Kumar moved to Shanghai, China in 2004, from his post in Europe to begin scrutinizing everything that went in and out of the Asian region.

Kumar told the purchasing department that they started doing a routine checking exercise for the logistics spend in that region. What was moving from where to where? They had the suppliers control logistics and minor notice was paid to what the real cost was for logistics and the management of the shipments for B2B International trade.

The pricing factor was taken into account only in phase two. Kumar made an excellent choice for the project because of his backdrop in procurement as well as his vast experience and work knowledge in a Global Sourcing. The Company targeted several major factories in the Asian region, charting the logistics network and lowering the freight cost from the part cost. Two issues stood to notice at the end of the project that the company's container fill rate was much lesser than was expected and many of the suppliers were transporting via shipment to Electrolux in parallel lanes using various logistics providers at varied rates.

So there was an obvious situation for establishing consolidation positions in China suppliers. Accordingly all suppliers in a particular region were brought together as one committed factory manufacturers and goods were shipped to the destinations.

This enhanced container fill rates and let Electrolux select the logistics providers it needed in various area. Electrolux used a standardized assessment table to sort out logistics service providers with deep emphasis on an international level, global sourcing, management and innovation.

Article Source: http://www.articlesbase.co...

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Tootoo.com , the leading B2B platform, combining vertical search engine with value added service portal. It has more than 430 000 China quality suppliers and provides top quality B2B services to both sellers and buyers worldwide.