China WFOE
WFOE is the most common and acceptable business structure for major business. The registered capital of a WFOE should be subscribed and contributed solely by foreign investor(s).
With a WFOE incorporated in China does not mean you can engage in any kinds of business activities, as is the case in HK and some Western countries. WFOE can only operate under the business scope approved by Chinese authorities.
If the WFOE trades, wholesales, retails or franchises, we call it a Trading WFOE; if it manufactures, a manufacturing WFOE.
If the WFOE implement consulting and advisory business, it is called a Consulting WFOE. If it provides food and beverage, a F&B WFOE.
Joint Venture
When two or more parties jointly invested & owns a stake respectively and share profits, operation expenses, risk and control of the company, we call it a Joint Venture (JV).
Representative Office
Many clients presumed that they can switch a RO to a WFOE, then they "can start making money" in China. Well, the truth is the Switch actually involves an expensive shutdown and a brand new WFOE incorporation.
China Trading Company
China Consulting Company
China Food & Beverage Company
Food and beverage company is basically a F & B WFOE that has a Food and Beverage License.
Most successful multinational F&B chains, whether SMEs or billion-dollar corporations, succeed in China because they customize their products to suit local tastes and trends.
With a limited company incorporated does not necessarily mean you can engage in any kind of business activities, as is the case in some western countries. Manufacturing WFOE can only operate within the business scope approved by Chinese authorities. Other activities are subject to further approval.
Hong Kong Company
The answer would definitely be HK company and HK, even if your business already based elsewhere.
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Please do feel free to email us to proposal@set-up-company.com or call us to 0086-020-2917 9715 at any time, we love helping new friends. let's get started!
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