Dongguan business is also known as Dongguan company formation or business setup in Dongguan. Dongguan is famous for its manufacturing and trading business among foreign investment, among which there are three main types of companies in China: WFOE, JV, and RO. Each type has its advantages as well as crucial disadvantages. Before investing in China, each company has to be sure what it wants to reach and how long it wants to stay in the Chinese market.
Wholly Foreign Owned Enterprise (WFOE)
WFOE, refers to Wholly Foreign Owned Enterprise, which is a type of business wholly owned by investors out of Chinese mainland. It has become one of the most popular types. Compared to a JV the advantage is that the foreign company is able to follow their own aims more clearly and does not have to take care about their Chinese JV partner. The shares are in the hands of foreign investors and the company is founded as a subsidiary in most the times.
Joint Venture (JV)
JV, also called Joint Venture, is one business established between foreign investors and Chinese business. In earlier year the Joint Venture was the most common business type for foreign enterprises in China. In some sectors it was and still is necessary for the formation of such a company as a car producer or the aircraft industry. A crucial point for the formation of the JV is to gain market shares, customers and knowledge about the Chinese market through the JV-partner.
Representative office (RO)
RO, also Representative Office, refers to one type of business representing its parent company for liaison purpose with Chinese counterparts. A RO is not considered to be a separate legal entity, which can not directly engage in business operation and transaction. The formation of a representative office is for many companies the first step to China. In most of the cases these companies already have a customer base in China and want to support them or get accustomed to the new environment. The representatives are founded out of marketing and promotion reasons in most of the times.
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If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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