Malaysia Hotline: +603-2141 8908
Beijing WFOE (wholly foreign owned enterprise) Registration is a business
entity formed in China entirely with foreign capital. It is totally under
foreign control and does not have any formal Chinese ownership participation.
For a foreign company to be able to issue receipts and export goods from China,
it must be able to legally registered as a local company or a WFOE. A WFOE is
set up as limited liability entity and represents separate legal persons and is
taxed according to local legislation.
Beijing Representative Office (RO) is established by foreign companies to
engage in business liaisons, quality control, product promotion, market
research, exchange of technology and other permitted activities in China.
1. Legal Status
WFOE is with independent legal personality. So, not only natural person
but also corporate can be its investor. Rep Office is just an office of foreign
company in China . There are some differences between them.
2. Employees
WFOE can hire Chinese employees by itself. But Rep Office cannot hire
China employees directly. Rep Office shall appoint HR companies to do it.
3. Business Scope
The business scope of WFOE may be trading, consulting or manufacture. But
the business scope of Rep Office is just a liaison between its clients and
foreign company. So, Rep Office has not a direct income in China. But it shall
pay tax also.
4. Tax
WFOE pays the tax based on income and profit. Rep Office pays tax based
on expense. Because China Government think the Rep Office has sent profit to
their foreign company indirectly and the offshore profit is duty free in most
of countries.
5. Bank Account
WFOE can set up a bank account for receiving money from his clients. The
bank account of Rep Office just receives money from his foreign company.
6. Expense of business
WFOE runs its business with registered capital from investor and its
profit from clients. Rep Office launch business with money received from
foreign company.
7. Registered Address
The registered address shall be commerce property. And the registered
address of Rep Office shall be chosen among buildings appointed by Government.
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Contact us:
If you have further queries, please contact Tannet.
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours Shenzhen hotline：86-755-
36990589;
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