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Business

Types of business formation in China

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Types of business formation in China

  1. Wholly Foreign Owned Enterprises (WFOE)

A WFOE is an investment vehicle, mainly a Limited Liability Company registered in China but 100% owned by foreigners. It is the most popular type of business formation because it provides you with total control over the venture. So, whether you want to immediately take advantage of the current economic recovery phase or the boom expected to follow after that,

WFOE will be a perfect option.

  1. Joint Venture (JV)

A Joint Venture (JV), is another common type of business formation in China that requires you to enter into a partnership with a Chinese resident. Note that the law requires the Chinese partner to hold controlling shares in the business. The main advantage of a JV is that you can take advantage of the business networks of your Chinese partner to grow the business rapidly.

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