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Donguan Company Incorporation Types

Updated:2018-5-4 15:41:09    Source:www.tannet-group.comViews:949

Donguan Company Incorporation is one of Tannet’s basic local business incorporation services. Dongguan is a major industrial hub in Guangdong province, located 100Km from Hong Kong, and just half distance between Shenzhen and Guangzhou. The municipality has four main districts: Guangcheng, Dongcheng, Nancheng and Wanjiang. Dongguan is linked to all major cities in the pearl river delta by road, train or ferry.

Tannet has been helping foreign investors set up wholly foreign owned companies and joint ventures in Dongguan. Recently, we are seeing more trading companies selecting Dongguan as location to be closer to their suppliers and take advantage of the lower operating and living costs as compared to Shenzhen or Guangzhou.

To facilitate people who want to invest and set up company in Dongguan, here is an introduction of Types of business presence in China. Before starting up a business in China, you have to know what are the options. Foreign Investors generally establish a business presence in China in one of five modes: Wholly Foreign Owned Enterprise (WFOE); Representative Office; Foreign Invested Partnership Enterprises (FIPE); Joint Venture and Hong Kong Holding Company.

1. Wholly Foreign Owned Enterprise (WFOE)
Wholly Foreign Owned Enterprise (WFOE) is a Limited liability company wholly owned by the foreign investor. WFOE requires registered capital and it's liability of equity , can generate income, pay tax in China and it's profit could be repatriate back to investor's home country. Any enterprise in China which is 100 percent owned by a foreign company or companies can be called as WFOE. No. minimum registered capital is required for WFOEs with scope of business of consulting, Trading, retailing, information technology etc. in China.

2. Representative Office (RO)
Representative Office (RO) is a Liaison Office of it's parent company. It requires no registered capital. It's activities would be: product or service promotion, market research of it's parent company's business, Quality Control liaison office etc in China. RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China.

3. Joint Venture (JV)
Joint Venture (JV) is a Limited liability company formed between Chinese investor and Foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc.

4. Hong Kong Holding Company
Hong Kong Company usually been used as a Special Purpose vehicle (SPV) to invest Mainland China. Hong Kong is one of the quickest locations to Incorporate a business. Although a HK company is not a legal entity in Mainland China, lots foreign investors, especially investors from Europe and North America still chose to setting up a Hong Kong company as SPV to invest China.

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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, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to 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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