The Chinese economy has grown to be one of the largest in the world today.The strong economic growth of China attracts more and more foreign investors who are eager to expand into the country.There are many opportunities for growth in China.Since joining the World Trade Organization in December 2004, China has opened its doors to more and more hong kong company incorporation cost. A Chinese entity is easier to set up due to China’s membership in the WTO.You can find a lot of useful information in this article if you have already decided to set up a business in China.
Types of business in China
Wholly Foreign-Owned Enterprises (WFOEs):
Generally, an enterprise wholly owned and funded by foreign investors is referred to as a wholly foreign-owned enterprise.As long as their registered business scopes permit, WFOEs may conduct business.Services such as consulting and management services are being used more and more by companies.
Office of the Representative (RO):
Foreign enterprises form Representative Offices (ROs), which are not legally recognized in China as legal entities.The china company formation is formed by a foreign enterprise and it is not a legal entity in China. Offices (RO) are formed by foreign companies, but they are not legal entities in China. They operate on behalf of their foreign parent companies.
Company registration through a Joint Venture is a special type of company formation in mainland China and abroad.Throughout China’s history, foreign companies have gained access to its market by forming joint ventures with local Chinese companies. Before the government of China implemented its foreign investment policy, JVs were the main way for foreign companies to enter the market.