‘Taking the first step into the World’s largest market’
Our registration consultants will guide you on the best and smoothest way forward for your business entry into China.
The registration process is notoriously complex and long-winded making it critical to use an experienced consultation company like Our Man in Beijing. We have experience of all the major business registration categories with significant experience in establishing SME business entities in China.
Each registration is notably different so we will thoroughly analyse your requirements before starting the registration process. Whilst the lengthy process is underway, we can also assist in establishing other business setup tasks such as sourcing commercial property or providing competitive analysis reports etc.
From initial conception through to handing over your company ‘chops’, our project team will be by your side, navigating any red tape and representing you at the various tax offices and government meetings.
To invest in China, there are four major forms of business entities:
- Wholly Foreign Owned Enterprises (WFOEs)
- Foreign Invested Commercial Enterprises (FICEs)
- Representative Offices in China
- Joint Ventures (Equity Joint Ventures and Cooperative Joint Ventures)
Wholly Foreign Owned Enterprises (WFOEs)
The Wholly Foreign Owned Enterprise or 'WFOE' is a common investment vehicle for mainland China-based business. The unique feature of a WFOE is that involvement of a mainland Chinese investor is not required unlike most other investment vehicles. This can give greater control over the business venture in mainland China and avoid a multitude of problematic issues which can potentially result from dealing with a domestic joint venture partner.
Foreign Invested Commercial Enterprises (FICEs)
Foreign Invested Commercial Enterprises (FICEs) are pertinent for retailing, wholesaling, franchising or trading businesses in China. Foreign-invested commercial enterprises (FICEs, one type of FIE) can distribute imported and locally manufactured products through their own wholesale, retail and franchise systems and can provide a host of related services, including storage, warehousing and garage services, inventory management, repairs, maintenance, training and delivery.
Representative Offices in China
Representative offices often engage in market research and establish contacts with prospective customers and partners. It is important to remember that the representative office is not a separate legal entity. Rather, it is an extension of its parent company. A representative office may only engage in non-profit making activities. Accordingly, the representative office may engage in any of the following functions: conducting research and providing data and promotion materials to potential clients and partners; conducting research and surveying for its parent company in the local market; liaising with local and foreign contacts in China on behalf of its parent company; acting as a coordinator for the parent company’s activities in China; making travel arrangements for parent company representatives and potential Chinese clients; and other non-profit making business activities.
Joint Ventures (Equity Joint Ventures and Cooperative Joint Ventures)
A Joint Venture is a business arrangement in which the participants create a new business entity or official contractual relationship and share investment and operation expenses, management responsibilities, and profits and losses.
The Chinese authorities encourage foreign investors to use this form of company inorder to obtain exposure to advanced technology and new management skills. In return, foreign investors can enjoy low labour costs, low production costs anda potentially large Chinese market share. Joint Ventures are sometimes the only way to register in China if a certain business activity is still controlled by the government. E.g. Restaurants, Bars, Building and Construction, Car Production and Cosmetics.
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Commercial Property Search
Encompassing both short term and long stay projects, we provide commercial property services for all requirements, complete with property management to compliment. Click here for more details
As part of our service we also provide a full range of destination services to help you settle in as quickly as possible into your new environment. Helping you find the right schools for your children and shops for your new home, this tailored service covers everything. Click here for more details