Company Formation in China

Opening a business in China can help your company to reach a market full of opportunities.

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Start to Reach Millions of Consumers with Your Product and Services

Company formation in China is one of the best ways to enter a growing market, which is driven by sheer manufacturing, stable central government, excellent connectivity, world-class infrastructure, and start to reach millions of consumers with your products or services.

WFOEs and Representative Offices have been for many years the most popular options for foreign companies looking to get started in China.

A WFOE / WOFE (Wholly Foreign-Owned Enterprise) is a Chinese registered company that is completely owned by foreign investors (individual or corporate).

A Representative Office (RO) is the simplest and fastest option for overseas businesses to set up an operation in China. In simplest terms, it allows a foreign company to engage in market research or business operations in China, but not to make a profit.

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Which Type of Entity Suits Best Your Needs?

WFOE

For a foreign company wanting independent operation in China, with the ability to invoice clients and make a profit a WFOE / WOFE is certainly the best option. A WFOE has full control of HR as well and can hire both foreign and local staff.

Some of the benefits of setting up a WFOE are:

  • Can make profits in China
  • Able to send funds overseas
  • Able to hire staff directly
  • Can be formed without a Chinese partner
  • The best option to protect IPR in China
  • Long-term licensing (15 to 30 years)

Number of Employees

10 to +150

Permitted Activities

Highest allowed to foreign enterprises

Post-establishment Requirements

HR, fiscal & legal managed internally

Set-up Time

6 to 10 months

Market Entry Cost

Medium – High (depending on industry)

Representative Office

In a country where it is typically expensive and time-consuming to establish a new company, this easier setup route is appealing to many companies.

For some, this will suit their operations fine (at least initially) and could save significant time and money. For others, it may be clear that a full WFOE setup is required from the outset.

Some of the benefits of setting up a Representative office are:

  • No registered capital is needed
  • Easier setup procedure
  • Low cost of setting up
  • Lower taxes
  • Conduct non-profit business activities
  • Faster setup procedure