With its accession to the World Trade Organization (WTO), China has strengthened its roles as manufacturing base and consumer market, which attract a greater attention from overseas investors. However, in the eyes of most investors, China is still a place with both opportunities and risks due to factors such as political and cultural backgrounds.

There are 2 common ways for foreign investors setting up a company in China:

1. Setting up a Wholly Owned Foreign Enterprise (WOFE)
2. Setting up a Representative Office (RO)

For setting up a WOFE, there is a greater efficiency in its operation and development as an independent legal entity with capability of carrying out trade and sales operations.
For setting up a RO, its entity structure is relatively simpler compared with that of WOFE. However, RO is established for business co-ordination only, which means directly engage in operational or sales activities are not allowed.

Formation of Wholly Owned Foreign Enterprise (WOFE)
A WOFE is a limited liability company registered with only foreign capital under the Chinese company law. The investing party could be foreign corporations, economic organizations or individuals. Same as other types of business registration in China, each WOFE is restricted in a certain business scope such as consulting, manufacturing, trading. Within its business scope, the WOFE can have normal business activities of buying materials, processing and selling the final products to local or overseas clients. Profits of the company can be repatriated to the investors' home country.

Service Package:

1. Preparing documents for the WOFE registration, such as
- Application letter
- Feasibility study report
- Articles of Association
- List of legal representatives, board of directors and shareholders


2. Applying for "Notice of Pre-Approval of Company Names"


3. Applying for Certificate of Approval from the Bureau of Foreign Trade Cooperation or Bureau of Foreign Industrial Development


4. Applying for Business License from the Administration for Industry and Commerce


5. Registering with related Government authorities, including
- The Public Security Bureau
- The Administration of Foreign Exchange
- The Taxation Bureau
- The Customs Department


6. Obtaining company chops


7. Obtaining Business Code Certificate, Statistics Registration Certificate, and Finance Registration Certificate


8. Registration Requirements
- 1 director
- 1 shareholder
- 1 legal representative

Setting Up of Representative Office (RO)
A RO is a non-legal entity representing its parent company, setting up in China to liaise with businesses and customers. It is not allowed to directly conduct business, issue invoices on its own or receive income from services performed. However, RO can function as a liaison between its home company and related industries in China, conduct market research, promote products and perform preparatory activities for future business development, which can be considered as the first step to enter into the China market.

Service Package:

1. Preparing documents for of the RO registration, such as
- Application letter
- Appointment letter of the chief representative
- Details of legal representative


2. Applying for Certificate of Approval from the Bureau of Foreign Trade Cooperation or Bureau of Foreign Industrial Development


3. Applying for Business License from the Administration for Industry and Commerce


4. Registering with related Government authorities, including
- The Public Security Bureau
- The Taxation Bureau
- Bureau of Statistics
- The Customs Department


5. Obtaining office stamps


6. Obtaining Business Code Certificate


7. Registration Requirements
- 1 chief representative appointed by the board of directors of its parent company