Tehong is a professional services provider in enterprise formation and registration. If you are planning to start business in China, our experienced practioners can deliver you helpful support and advices in selecting the type of a company, implementing the establishment and registration procedure of the company, dealing with tax issues and developing your business in China.
There are plenty of reasons to set up a company in China – huge labor and consuming market, strong economic growth of both import and export market. For foreign enterprises, there are four main types you can choose to establish in China:
▪Wholly Foreign Owned Enterprise (WFOE): a limited-liability corporation organized by foreign nationals and capitalized with foreign funds.
▪Foreign Invested Partnership Enterprise (FIPE): an unlimited liability business entity with at least one of whose partners is a foreign investor. Both foreign individuals and legal entities can be partners of a FIPE.
▪Joint Venture (JV): a business agreement in which the parties create a new business entity or official contractual relationship. They exercise control over the enterprise and consequently share revenues, expenses and assets.
▪Representative Office (RO): a representative office is an office established by a company to conduct marketing and other non-transactional operations, generally in a foreign country where a branch office or subsidiary is not warranted.
You can also consider other registration options, for example, to open an offshore Hong Kong company. Each company type has its own advantages accompanying with certain disadvantages at the same time. In-depth market research and accurate orientation of your business are crucial before you start and register a company in China.
It can be a big challenge for you to open and register a company in a foreign land where you are not familiar with the local culture, law, policies and business administration systems. We can help you navigate the path to the formation and registration of your company.