China has become one of the major driving forces of the world’s economy and after testing the water for many years, a lot of foreign companies are setting up their own establishments in China. The purpose of this factsheet is to provide the various options available to foreign investors to set up their business in China.
Foreign investors are generally welcome to invest in most businesses in China except specific industries such as media, broadcasting, internet related and some other forbidden or controlled industries. Companies established in China by foreign investors are collectively referred as Foreign Investment Enterprises (”FIEs”).
Foreign Investment in China
|Most Popular Forms||WFOE and RO|
|Wholly Foreign-Ownd Enterprise (WFOE):|
|Registered Capital||Must fulfill specific requirement|
|Business Scope||Must operate within its approved scope|
|Shareholder||At least one shareholder|
|Legal Representative||At least one legal representative|
|Registered Capital||Not necessary|
|Business Scope||Only engage in business liaison|
|Chief Representative||Should have one|