Entity Formation & Setup in China

Set-up Your Company in China

China’s massive economy is appealing to companies all over the world interested in entering a new market.  With the ongoing trade war, legal difficulties in establishing a company, and language and cultural barriers, expansion into China can seem daunting. Fortunately, NNRoad’s experienced team is guiding firms through the entire process, ensuring smooth growth to the world’s second-largest economy.  

Business entities you can open in China

1) WFOE

Standing for Wholly Foreign-Owned Enterprise, it allows a foreign company to operate in the Chinese market while still being completely owned by foreign investors. This legal structure is the most common and effective at taking advantage of the vast consumer base in China. Some characteristics of a WFOEs are:
  • Can perform profit-making operations and send funds overseas (trading, consulting, manufacturing, etc);
  • Most independent foreign-owned structure with long-term licensing;
  • Can hire foreign and local employees.

2) Representative Office

A Representative Office, known as an RO for short, is a popular method for foreign companies to explore and test the Chinese market. This structure has various operational limitations such as conducting profit-making activities or hiring local Chinese. A few characteristics of an RO are:
  • Gives foreign firms a platform to perform market research, publicity, and marketing activities;
  • Firms operating under this structure are not permitted to invoice clients or make a profit, and cannot directly hire local staff, they must instead go through a local agency PEO in China;
  • Especially suitable for manufacturing-related activities, such as liaising with suppliers and quality assurance.
 

Our Company Formation Service Includes:

  • Help you to select a proper entity type.
  • Recommend capital amount.
  • Recommend the Chinese name.
  • Translate related documents (for foreign language materials).
  • Apply for foreign investment approval (foreign investors only).
  • Recommend the registration address.
  • Recommend business scopes.
  • Recommend a template of the association article.
  • Assist in applying for a business license, organization code, company chop.
  • Assist in applying for a special certificate (depends on the industry).
  • Apply for tax registration and foreign currency registration (foreign investors only).
  • Assistance in bank account opening. 
  • Apply for trademark registration (if needed).

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