TP FAQs: Positioning of a Single-Function Entity (R&D/Production/Distribution) |单一功能企业(研发/生产/分销)如何定位

A single-function enterprise is a Malaysian company with restricted functions and risks, such as production, distribution, or contract R&D. The Inland Revenue Board usually investigates and makes a transfer pricing adjustment because many enterprises, especially single-function businesses, have a mismatch between their functional roles and earnings. For example, a single manufacturer engaged in processing and […]

TP FAQs: Positioning of a Full-Fledged Distributor | 全功能分销商如何定位

Generally, a Full-Fledged Distributor (FFD) executes all sales and distribution functions and is responsible for the expenses associated with managing the warehouse, the logistics, marketing, and other sales support, as well as after-warranty service. In addition, FFD offers after-sales services. It purchases, holds, and sells goods; sales are recorded on its books. Full-Fledged Distributor also […]

TP FAQs: Positioning of a Limited Risk Distributor | 有限风险型分销商如何定位

Typically, a group of companies will establish a distributor with limited risks to distribute the goods that the group of businesses manufactures. The group can decide on the pricing at which the Limited Risk Distributor buys and sells. The material difference between an agent or Commissionaire Distributor and the Limited Risk Distributor is that the […]

TP FAQs: Positioning of a Commissionaire Distributor | 佣金分销商如何定位

A Commission Distributor is an example of a distributor within an intra-group with limited responsibilities and exposure to risk. Unlike the Limited Risk Distributor, the Commission Distributor undertakes fewer operational functions and does not assume ownership of the goods being traded (the Commission Distributor executes contracts on his behalf but on account of another person […]

TP FAQs: Positioning of an Agent Distributor | 销售代理商如何定

An agent is someone who communicates with customers and negotiates sales deals, but he can’t sign contracts in his name or on his behalf. The agent needs to develop a sales team, identify and qualify new customers and maintain sales relationships. However, the agent is not involved in negotiating the terms and conditions of the […]

TP FAQs : Positioning of a Full-Fledged Manufacturer | 全功能风险制造企业如何定位

Full-fledged manufacturers may be responsible for various tasks, including production planning, input procurement, supply chain management, quality control, long-term capacity utilisation planning, and possibly even selling to third-party clients. Product responsibility, warranty, capacity utilisation, market demand, and pricing risks are some of the risks associated with the operations of a full-fledged manufacturer who holds (non) […]

TP FAQs : Positioning of a Licensed Manufacturer | 特许制造企业如何定位

A licenced manufacturer manufactures items under the terms of a licence agreement. This manufacturer uses the intangible manufacturing assets the licensor owns, such as patents, product designs, manufacturing processes, and know-how. The licenced manufacturer pays royalties for licenced intangibles, often purchasing raw materials and semi-finished goods on its behalf and maintaining inventories of completed goods […]

TP FAQs: Positioning of a Toll Manufacturer | 付费生产、来料加工企业如何定位

The principal keeps ownership of the raw materials, work-in-process, and finished products at all times during the manufacturing process when working with a toll manufacturer. The raw materials are owned by the related-party manufacturer, who then makes them available to the toll manufacturer so that they can be processed (that is, the toll manufacturer does […]

TP FAQs: Positioning of an Import-Processing Company | 海外进料加工企业如何定位

Processing with imported materials means using your own foreign exchange to buy raw materials, components or parts in the international market and then processing and assembling them into finished products according to your own design for export to foreign markets. This practice is also known as “importing to feed the exporters” in China. Processing with […]

TP FAQs: Positioning of a Contract Manufacturer | 合约制造企业如何定位

Compared to a normal licenced manufacturer, a contract manufacturer is typically regarded as carrying a lower level of risk. A manufacturing principal that directly bears the risk of demand and final consumer pricing is the “manufacturing principal” for whom the contract manufacturer manufactures items. The principal may guarantee the acquisition of the goods if the […]