China Company Registration Services
China Company Registration is the term for the process of incorporation of a business in China. It is also sometimes referred to as China company registration. The forms of China Company registration can be divided into Wholly Foreign Owned Enterprise, Representative Office, Equity joint venture, Co-operative joint venture and Foreign Investment Enterprise. The forms of China company are as following:
1. China Company Registration-WFOE
The Wholly Foreign Owned Enterprise, abbreviated WFOE, is a common investment vehicle for mainland China-based business. The unique feature of a WFOE is that involvement of a mainland Chinese investor is not required, unlike most other investment vehicles. WFOEs are limited-liability corporations organized by foreign nationals and capitalized with foreign funds. This can give greater control over the business venture in mainland China and avoid a multitude of problematic issues which can potentially result from dealing with a domestic joint venture partner.
2. China Company Registration-RO
A Chinese representative office (RO) is an institute setup in China, representing its parent company for liaison with Chinese counterparts. A RO is not considered to be a separate legal entity. It can not directly engage in business operation. However, through which its parent company can enter into contracts with its supplier/customers in China in its own name, but not under the name of RO. A representative office is popular for those who are willing to enter China at the test period of business and investment.
3. China Company Registration- EJV
The corporate form of an EJV is the limited liability company, which possesses the status of a Chinese legal person. It involves joint investment and operation and the sharing of profits and losses, as well as risks in proportion to the partners’ respective shares in the registered capital.
4. China Company Registration- CJV
In most respects, CJVs are structurally similar to EJVs. Unlike EJVs, however, CJVs can be established either as a limited liability company or as a non-legal person, in which the partners are subject to unlimited liability and thus entirely liable for any losses. The rights and obligations of the JV partners concerning issues such as distribution, investment, operation and sharing of profits/losses and risks are determined by the individual joint venture contract.
5. China Company Registration- FIE
Setting up an FIE is a common method of creating an operation in Asian countries, especially in China. In China, any one of a number of legal entities can be considered FIEs including equity joint ventures (EJV), cooperative joint ventures (CJV), wholly-owned foreign enterprises (WFOE) and foreign-invested companies limited by shares (FCLS).
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