Entity Options
Choose a structure that fits your Qinghai plans
For mainland China, foreign investors commonly use a wholly foreign-owned enterprise (WFOE), a Sino-foreign joint venture, or a representative office. Each has different scope, capital and compliance implications.
Wholly Foreign-Owned
WFOE
A limited liability company owned entirely by foreign investors, established under mainland China law.
- Full control over operations and management
- Can conduct permitted business activities within its registered scope
- Requires registered capital, a registered address and a business scope
- Subject to ongoing tax, accounting and reporting obligations
Sino-Foreign
Joint Venture
A company formed with one or more Chinese partners, sharing ownership and governance under an agreed structure.
- Access to local partners' networks and market knowledge
- Governance and profit-sharing defined in the joint venture contract and articles
- Requires careful due diligence on the Chinese partner
- Useful in regulated or resource-linked sectors
Non-Trading
Representative Office
A liaison office that represents the foreign parent — not an independent profit-making entity.
- Limited to liaison, market research and coordination activities
- Cannot sign contracts or generate revenue in its own name
- Simpler scope but restricted functionality
- Still requires registration and ongoing compliance
Note for Hong Kong, Macau and Taiwan investors:
Investors from Hong Kong, Macau and Taiwan are treated under separate arrangements, and the
local company formation regime in those jurisdictions applies to entities formed there. The
mainland WFOE, joint venture and representative office rules described above are mainland
China rules; they should not be assumed to apply to Hong Kong, Macau or Taiwan companies.
We can help clarify which framework is relevant to your situation.