There are several types of business setup in Yiwu, each serves different functions. We will be able to recommend the best company structure based on the requirements of the business owner.
Common Types for Business Registration:
1. Wholly foreign owned enterprise (WFOE);
2. Representative office (RO);
3. Equity joint venture (EJV);
4. Foreign invested partnerships enterprise (FIPE).
Yiwu Company Incorporation -WFOE
The Wholly Foreign Owned Enterprise, abbreviated WFOE, is a common investment vehicle for mainland Yiwu-based business. The unique feature of a WFOE is that involvement of a mainland Chinese investor is not required, unlike most other investment vehicles. WFOEs are limited-liability corporations organized by foreign nationals and capitalized with foreign funds. This can give greater control over the business venture in mainland Yiwu and avoid a multitude of problematic issues which can potentially result from dealing with a domestic joint venture partner.
Yiwu Company Incorporation -RO
A Chinese representative office (RO) is an institute setup in Yiwu, representing its parent corporate for liaison with Chinese counterparts. A RO is not considered to be a separate legal entity. It can not directly engage in business operation. However, through which its parent corporate can enter into contracts with its supplier/customers in Yiwu in its own name, but not under the name of RO. A representative office is popular for those who are willing to enter Yiwu at the test period of business and investment.
Yiwu Company Incorporation -EJV
The corporate form of an EJV is the limited liability company, which possesses the status of a Chinese legal person. It involves joint investment and operation and the sharing of profits and losses, as well as risks in proportion to the partners’ respective shares in the registered capital.
Yiwu Company Incorporation -FIPE
The Foreign Invested Partnership Enterprise (FIPE) is an unlimited liability business entity without minimum requirements on registered capital. A partnership in the People’s Republic of China is a business entity governed by the Partnership Enterprise Law passed by order of the President of the People’s Republic of China to authorize and govern partnership enterprises. A partnership is a type of business entity in which partners share with each other the profits or losses of the business undertaking in which all have invested.
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