Investment considerations in the China market

Before investing in the China market, decide which type of presence you need for your company. There are several things to consider to choose the right type of entity:

Considerations for representative offices

You may opt for a representative office (RO) if you:

The set-up process and capital requirement for ROs are easier to obtain than with other types of entities.

Advantages of ROs

Disadvantages of ROs

Considerations for wholly foreign-owned enterprises

Advantages of WFOEs

Disadvantages of WFOEs

Considerations for joint ventures

Equity joint ventures

The advantages of Chinese partners are:

As a holding company, an Equity JV can benefit from economies of scale in operations and management via collective investments under one corporate identity.

Cooperative joint ventures

Advantages of joint ventures

Disadvantages of joint ventures

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