China Company

Foreign investors who wish to establish a business in Mainland China can choose to set up a representative office or wholly foreigner owned enterprises (WFOE). KPC provides them with advices and assistance service during the application process.

Representative Office

A Representative Office (RO) is the most simple and economical way of setting up a legal presence in China. It is an office of a foreign enterprise set up for the purpose of liaising with Chinese businesses and customers on behalf of its parent company.

Advantages

• No registered capital required.
• Legal presence in China.
• Easy and fast set up.
• Simple company structure.

Disadvantages

• It cannot sign sales contracts.
• It cannot issue invoice.
• It cannot hire local employees directly.

Wholly Foreign Owned Enterprise (WFOE/FICE)

Wholly Foreign Owned Enterprise (WFOE/FICE) is a limited liability company, owned and financially managed by foreign investors or corporation

Advantages

• Limited liability company.
• Fully owned and managed by foreign investors.
• Allow to purchase or build property in China.
• Allow to hire local staff directly.
• Capability to convert profits from RMB to USD for repatriation.

Disadvantages

• Higher registered capital requirement.
• Complicated and longer registration process compare with RO.
• Higher operating cost.
• Subject to all applicable Chinese business taxes (VAT, Corporate, Dividend, and Income).

Which type of China company should I choose?

We provide professional consulting services to assist you in forming the most suitable types of China company.

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