• Services
  • Business in China
  • Entity Establishment Solution

Entity Establishment Solution

There are numerous ways to invest in the China market. Nowadays the most popular option is to establish a Wholly Foreign-Owned Enterprise ("WFOE") in China through Hong Kong Holding Company (as a special purpose vehicle); over 75% of foreign investors choose this investment vehicle when entering the China market.

Types of Foreign Investment Enterprises ("FIEs")

Representative Office ("RO")

  • Non-legal entity
  • Direct hiring is not allowed
  • Limitation of business scope
  • Intermediate step to monitor Chinese market before making substantial investments or commitments in the PRC
  • Focus on export activities or monitor quality control without establishing a legal entity
  • Operate in industries that are clearly regulated, restricted or prohibited in China but wish to establish a presence

 

Wholly-owned Foreign Enterprise ("WFOE")

  • Default option for most foreign investors, particularly popular with small or medium-sized foreign companies
  • Registered Capital is varied depending on the industry and business scope, however no deadline on capital injection (Within 5 – 8 years is recommended)
  • Full control & management of the company’s direction in the long term and safety of certain intangible assets
  • Most of business activities can be conducted; pre/post-approval and licensing are required for specific industry e.g. construction, telecommunication, media and etc.

 

Joint Venture ("JV")

  • Normally exists due to:
    1. Legal restrictions in China;
    2. Investment/participation into an existing company such that the current shareholder(s) remain in the business;
    3. Advantages or capabilities of the Chinese partner to a large extent, e.g. local brand awareness, distribution network;
  • Foreign invested JVs often face challenges in management styles, culture, expectations versus local standards
NOTICE
Holiday Notice: The first day of January 2019
Please note that Atrix will be closed on 1 January (Tuesday), and our service to be resumed on 2 January (Wednesday).

Waiving business registration fees for 2019/20
In Hong Kong 2019-20 Budget, the Financial Secretary proposed a waiver of 2019/20 business registration fees of HKD 2,000.   Read more

The Hong Kong 2021-22 Budget Summary
This year's Budget focuses on stabilising the economy and relieving people's burden. It aims to alleviate the hardship and pressure caused by the economic downturn and the epidemic through the introduction of counter-cyclical measures costing over HKD 120 billion.   Read more

Great News! 10% discount on our trademark service fee for limited time only!
Registration of your IP provides greater protection of your company's brand, goods and services with greater remedies.   Read more