Background
China is the third major economy power in the world. Since the 1978 economic liberalization, China economy has grown 70 times, and is the fastest growing major economy in the world. China government promises to give more freedom for foreign investment when they joining the WTO. Since then foreign investment record keep increasing in recent years, investor includes both multinational company and SME. Although foreign investors need to apply many licenses before starting their business, there are still formal path to start your business in many industries.
Foreign investors are now allowed to enter the China market by two different methods, WFOE or Representative office. |
Advantages
China, one of the most attractive economy last decent, the following reasons are why investor choose to invest there.
• One of the fastest growing market in the world
• Huge market backup by over 1.3 Billion population
• Low labour cost |
WFOE
• As it is incorporation, it has legal person status
• Investor has complete control over the investment, as no local investment required
• Ability to conduct business, issue invoices and generate revenues
• Profit can transfer back to investor’s oversea account after tax
• As it has legal person status, it has the power to hire its own employment
• It is allowed to have its own asset include visible and invisible
Representative Office
• No registration capital required
• Formation process is much shorter
• Formation fee is lower
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