Company Formation – Alfa Consulting

Focus on your core business while we handle the complexities of China’s regulations.
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Are you ready to take your killer business idea to market?

We expertly handle the legal and structural details, from incorporation to tax considerations, ensuring a seamless setup for your entity in China.

Selecting a Chinese name for the new entity.
Preparing, translating, and notarizing all necessary documents from the parent company.
Defining the company structure and assigning roles such as General Manager, Directors, Legal Representative, Supervisor, and CFO.
Setting the annual budget and aligning the registered capital with the entity’s requirements.
Opening a bank account in China, typically requiring the legal representative’s presence.

We help to create, track, and deliver faster.

Foreign investment in China can be structured through various vehicles, depending on factors like planned activities, industry, and investment size.

An RO (Representative Office) is a simple and attractive option for foreign investors to enter the Chinese market.
It is the easiest foreign investment structure to set up, serving as an extension of the foreign company without independent legal status.
Unlike a WFOE, when an RO signs a contract, the foreign company is bound by the agreement.
ROs have limited permitted activities and are prohibited from engaging in profit-seeking operations.
They are primarily used to support and facilitate the foreign company’s activities in China.
The agency legally employs local staff and sends them to work at the RO for a fee.
ROs are taxed as a permanent establishment in China, typically resulting in a tax liability of around 8% of total expenses.
ROs are ideal for companies procuring from China, ensuring quality control, or maintaining close communication with suppliers, agents, and distributors in China.

A WFOE (Wholly Foreign Owned Enterprise) is a limited liability corporation fully owned by one or more foreign investors.
Unlike an RO, a WFOE can generate profits and issue local invoices in RMB to suppliers.
It can directly employ local staff without needing to use an employment agency.
A WFOE can also expand and create subsidiaries within China.
Compared to a JV, a WFOE offers greater autonomy and flexibility, allowing investors to implement company policies without involving a Chinese partner.
A WFOE provides better protection for intellectual property and technology.
A WFOE is not allowed in sectors classified as "restrictive" under the 2021 National Negative List or the FTZ Negative List, where a Chinese equity partner is required.

A JV (Joint Venture) is formed by foreign investors in partnership with one or more Chinese parties.
Since the enactment of the FIL, Chinese individuals can now become JV shareholders, offering more flexibility in partner selection.
To invest in restricted sectors where foreign investment is only allowed through a JV with a Chinese partner.
To leverage the local market knowledge, sales channels, and established contacts of a Chinese partner.
New JVs are governed by the Company Law after the FIL (2020), which introduced changes to the governing structure and operational procedures.

A Foreign Invested Commercial Enterprise (FICE) can be established as either a WFOE or JV, focusing on retail, franchising, or distribution.
A WFOE or JV can operate exclusively as a FICE or combine FICE activities with other functions, like manufacturing and services.
FICEs are cost-effective to set up and benefit foreign investors by integrating sourcing, quality control, purchasing, and export, allowing for more control and quicker responses compared to managing these activities from abroad.
FICEs are ideal for foreign companies sourcing products in China to sell domestically, avoiding the need to export goods and re-import them, which would incur additional costs, customs duties, and VAT.

Starting a Business in
China

China Company Registration

Business License

Business Scope

Articles of association

Stamps

Bank Account

E-invoice

Visa & Work Permit

Social security account

Company Registration & Business Setup

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What to expect?
Easy setup.

Represented Office (RO)

Wholly Foreign-Owned Enterprise (WFOE)

Joint Venture (JV)

Foreign Invested Commercial Enterprise (FICE)

Alfa Consulting

Starting a Business in China