Chinese Companies

Setting up Chinese Companies
There are three different corporate structures that can be utilized to do business in China. These are:
1. Representative Office (RO)
2. Joint Venture (JV) with a Chinese partner
3. Wholly Foreign-Owned Enterprise (WFOE)

All these corporate vehicles are described in these pages, including their benefits and disadvantages. This information should provide some basic knowledge to facilitate the decision making process and help to avoid unnecessary risks when doing business in China.

In these pages, we offer our point of view on how businesses can successfully navigate uncertainties and built themselves a solid basis. China’s long term prospects are positive. The present economic situation is constantly improving with strong productivity gains, inclusion in the World Trade Organisation, fewer regulations and more privatizations, decreasing red tape, reduction of trade barriers, and excellent labor force development. Doubtless, there is an excellent business potential in China. However, businesses should be acutely aware that China has a quickly changing and developing business environment. Therefore it is of paramount importance to implement a corporate structure that is flexible enough to react and adapt accordingly. Most of the challenges discussed relate to the task of organizing your corporate vehicle for a transitional environment in order to secure and maximize your gains.