Product Description

Wholly Foreign Owned Enterprise (WFOE, a Limited Company);Representative Office(RO); Joint Venture(JV) establishment service  in Guangzhou, China.  Differences, advantages, and disadvantages of a WFOE compared to other types of Representative Offices and Joint Ventures Timely Enterprise Service.

A WFOE Compared with RO:
A WFOE is an independent legal entity in China, while a RO is not. A WFOE is allowed to carry out business in line with its registered business scope in China, receive payments in RMB, issue formal invoices in RMB (“Fapiao”), and hire its employees directly. A RO can not perform any of these functions. The notable disadvantage of establishing a WFOE is a registered capital requirement which means that at the initial stage of setting up your business in China, you’ve already been required to invest a certain amount of capital. 

A WFOE Compared with JV: 
Both a WFOE and a JV are regarded as independent legal entities in China. As a WFOE is wholly owned by the foreign investor(s) it enjoys a higher level of foreign managerial control than a JV, and allows easier allocation of profits back to its foreign investor(s). Since a WFOE is invested without Chinese partners(s), it must seek facilities, hire staff, and establish business channels without the assistance a local partner may be able to provide.
Before investing in China, you'd better get more knowledge about the different kind of company forms in Guangzhou, China. For more information, please do not hesitate to contact us Timely in Guangzhou.