Why you choose China to expand your business?
Reasons for setting up a business in China:
- Enjoy sustained economic growth rates in China
- Increase the market share in the world as China is the second largest economy in the world with 1 billion people
- Good for manufacturers or sourcing goods for export, because of competitive price for labour and shipping cost
Types of investment
3 Types of investment available for foreigner:
1. JV
>> Participants create a new business entity or official contractual relationship.
>> Share investment operation expenses, management responsibilities, and profits or losses.
>> For some business, e.g. restaurants, bars, etc…, they are only allowed to be establish under JV.
2. WFOE
>> It is a business entity formed in China entirely with foreign capital.
>> 100% under foreign control and ownership, and does not have any formal Chinese ownership participation.
>> Minimum paid up share capital normally starting from CNY 1 million, depend on the business nature.
>> For those company which export goods from China or issue receipt, they are only allowed to be established under this type of investment.
3. Representative Office
>> Simplest and most cost effective method of establishing a useful business presence in PRC.
>> It is an entity allow to do business activities in PRC but do not make direct profit by using this office.
>> Type of activities that suitable for establish under representative office, introduction of product, market research, technology exchange, etc…
