WFOE · Joint Venture · Representative Office · Branch
Your first structural decision is which vehicle to use — and it is the single most consequential choice for how your China business operates, is taxed, and can later exit.
A Wholly Foreign-Owned Enterprise (WFOE) is now the default for most investors: it can invoice, hire directly, own assets, and repatriate profits. A Joint Venture (JV) remains necessary or advantageous where a Chinese partner holds licenses, distribution channels, or regulatory relationships you cannot replicate. A Representative Office is coordination-only — it cannot issue invoices, sign revenue-generating contracts, or hire directly, and its parent bears unlimited liability for its acts. A Branch of a foreign company is rare and typically reserved for banks, insurers, and airlines.
We model each structure against your actual operating plan — not a template — factoring in industry, business scope, capital needs, headcount plans, and how you expect to extract value. The goal is a structure that satisfies PRC regulators without dismantling your global operating model.
Reference: Foreign Investment Law (2020) · Company Law (rev. 2024)
We work in English and Chinese, on your timeline. Initial consultations are confidential and without obligation.