SETTING UP A BUSINESS IN CHINA

China is an exciting place to do business and the opportunities are endless. But establishing a business entity in China can be challenging and confusing, and many businesses have relied on APA to navigate through the procedure. There are three recognized types of business organizations in China open to foreign companies, and we specialize in the set-up of each:

Joint Venture (JV)
A Joint Venture is a business arrangement consisting of two partners (one Chinese, one foreign) creating a new business entity. Both take equal responsibility for management, expenses, profits and losses.

Joint Ventures are sometimes the only way to register in China if a certain business activity is still controlled by the government, e.g. construction, car manufacturing, cosmetics etc.

Wholly Foreign-Owned Enterprise (WFOE)
The WFOE is a business arrangement where a foreign company invests on its own without a Chinese partner. Earlier on, the WFOE format was predominantly used for service providers such as consulting and management services, software development and trading. Increasingly, more manufacturing enterprises are now also using the WFOE route to establish a presence in China.

Representative Office
Representative Offices are established by foreign companies to engage in activities such as business liaison, product promotion, market research and technology transfer.

Representative Offices are not officially allowed to directly engage in operational activities. Similarly they may not invoice or receive payment in China.


Other Business Setup services include:

• Recommendations and advice on office space, location and related issues
• Phone, secretarial and administration support
• Advice on staffing costs
• Assistance with key staff appointments.