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 In China music sheet Chinese boy girl poster art print $14.98 Time Remaining: 3d 7h 37m Buy It Now for only: $14.98 |
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China Chinese
WFOE China - Start A Business In China
So, you're ready to setup your business in China. Now you must decide what is the best legal structure to use to conduct business in China.
There are generally three choices to choose from, the Representative Office (Rep Office), Wholly Foreign Owned Enterprise (WFOE), or the Joint Venture.
The Rep office and the WFOE offer the most control and are the two most preferred choices unless there are some special circumstance that might force you to form a Joint Venture.
How do you decided between these two types of company formation? The most basic deciding factor is whether or not you will need to issue a Chinese tax receipt, called a fapiao, to your customers.
If your customers are Chinese businesses or Chinese consumers than they will most likely require a tax receipt. If your customers are multinational corporations than it might be possible to process payments outsite of China and avoid the Chinese tax receipt.
Only the WFOE is able to issue Chinese tax receipts. In addition to being able to issue tax receipts, the WFOE also allows the foreign business to have independence and to formally conduct business. The WFOE is also able to convert RMB profits to US dollars. The Rep Office is unable to issue tax receipts and is more restricted in the scope of work it is able to perform.
It usually takes 3 to 6 months to setup a WFOE. This includes registering with the various government offices.
These days, most foreign business that have a permanent presence in China are choosing the WFOE because it gives them full legal standing and indepedent control of their business within China.
If you would like to get more information about doing business in China, visit us at our webstie.
Looking forward to seeing you here in China soon.
WFOE, WFOE China, Conducting Business, Business In China, Chinese Negotiation, Chinese Negotiating, China Negotiation, Chinamarket, ChinaWeb, China Negotiating, Negotiation Style, Negotiating Style, China Customs, Chinese Customs, China Etiquette, Chinese Etiquette, Chinese Manners, China Manners, China Business, Chinese Business, China Culture, Chinese Culture, Customs and Practice, Business Etiquette, Business Customs, Business Practices, International business
About the Author
Steve Hubbard first came to China in 1988 and has been living and working here since 2006. To go about conducting business in China and the Chinamarket, learn China business customs and practices, as well as some China fun facts.
For more fun facts about China and business etiquette in China visit:
http://www.YourGuideToChina.com/WFOE_China.html
Should I intern and learn Chinese in China?
Next year I want to do an internship in China, in international relations//trade issues, for a maximum of 6 months. Whilst there, I want to study Chinese at a good university, while homestaying at a Chinese family.
I realise that Chinese is a difficult language and I will not master it in 6 months. But Chinese is important and I feel an internship in China can help my career, since China is a very important country to watch. At least some basic Chinese will help.
But I am not very sure. It will cost money and it can go horribly wrong. So, is there anyone on this site who has done something similar, or know someone who has? Others before me have done it so why can't I? But I will be taking an enormous risk! Do you think it is a risk worth taking? Any advice?
It is a very good idea to study chinese in china because it is the best way to learn. I am currently teaching in China and learning the language as i do so. The problem if you do an internship is how will you have time to go to university. Their education system is very tough and they can be in school from 7 in the morning until 7 at night. One of my friends is currently studying chinese in university but places are limited and you need to pay money for most places. Being a homestay is not a very good idea i think because how can you communicate? Be advised English is not widely spoken in China and it is difficult to communicate with people. Also every province has its own language and pronunciation varies in some cities as well, so be prepared. You could think of teaching English because most schools will give you free accomodation and Chinese lessons. I think this is the best way to go for you! Good luck in whatever you do decide though. It is definitely worth the risk you won't know if you don't go
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