Invest in China

Types of business presence in China :

Foreign Investors generally establish a business presence in China in one of four modes: WFOE, Representative Office, Joint Venture and Hong Kong company, the defination difference between each of these are summarized here;

WFOE is a Limited liability company wholly owned by the foreign investor. WFOE requires registered capital and it's liability of equity , can generate income, pay tax in China and it's profit could be repatriate back to investor's home country. Any enterprise in China which is 100% owned by a foreign company or companies can be called as WFOE.

RO is a Liaison Office of it's parent company. It requires no registered capital. It's activities would be: product or service promotion, market research of it's parent company's business, Quality Control liaison office etc in China . RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China .

JV is a Limited liability company formed between Chinese investor and Foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc.

Hong Kong company usually been used as a Special Purpose vehicle (SPV) to invest China . Hong Kong is one of the quickest locations to Incorporate a business. Although a HK company is not a legal entity in China mainland, lotsf investors (especially for investors from Europe and North America) chose to setting up a Hong Kong company.

Please check the following links for detailed and updated procedures and template for registering 4 different types of business in China :

• Shanghai surf business Consulting Co., Ltd
  If you want to get more detailed information about enterprise registration , welcome send a email to us or give us a call directly.
  TEL 86 21 61450641 Email: \n JOHN@RICHIN.HK