CHINA COMPANY FORMATION

Nowadays, China becomes increasingly important in the world stage. Her fast-growing economy, huge population and favourable policies attract many foreigners to establish a company in China.
Here are ways to have company in China:
FOREIGN INVESTMENT ENTERPRISE (FIE)

Setting up an FIE is a common method of creating an operation in China. In China, any one of a number of legal entities can be considered FIEs including wholly-owned foreign enterprises (WFOE), Sino-Foreign equity joint ventures (EJV) and Sino-Foreign cooperative joint ventures (CJV).

WHOLLY FOREIGN-OWNED ENTERPRISE (WFOE)

A Wholly Foreign Owned Enterprise (WFOE) is a limited liability company registered with foreign capital under Chinese Company Law. For a foreign company to be able to issue receipts and export goods from China, it must be able to legally register as a local company or a WFOE.WFOE’s are among the most popular corporate models for non-PRC investors due to their versatility and unique advantages.

SINO-FOREIGN EQUITY JOINT VENTURE (EJV)

Sino-Foreign Equity Joint Venture (EJV) is a limited liability company incorporated by a Chinese partner and a foreign company. It is capable of capable of buying land, hiring Chinese employees independently, constructing buildings etc. The partners share profits, losses and risk in equal proportion to their respective contributions to the venture’s registered capital.

SINO-FOREIGN CO-OPERATIVE JOINT VENTURE (CJV)

A Sino-Foreign Cooperative Joint Venture (CJV) is a joint venture between a Chinese and a foreign company within the territory of China. The Chinese company usually provides the labour, land use rights and factory buildings, while the foreign company brings in the necessary technology and key equipment, as well as the capital.

FOREIGN REPRESENTATIVE OFFICE (RO)

A non-legal entity office set up in China to represent parent company. It is considered as the first step to enter into China market.