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Guangdong Zhongshan company formation

Update Date:2015-10-22 10:56:23 Source:Tannet (Malaysia) Sdn Bhd Views:1039

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Doing Business in the Mainland

The main categories of business for foreign investors (including Hong Kong investors) in the Mainland include the following:


1) Representative office (RO)

RO can engage in non-profit generating activities that are related to the business of its foreign parent enterprise and business-related liaison activities. ROs cannot operate business directly and they do not have legal person status.

 

2) Individual sole proprietorship

One of the preferential treatments under the Closer Economic Partnership Arrangement (CEPA) states that Hong Kong permanent residents with Chinese nationality may, in line with relevant laws, regulations or administrative rules of the Mainland, establish sole proprietorship in any provinces, municipalities, or autonomous regions in the Mainland without being subject to foreign investment approval process. There is no limit on the number of employees, or the size of its business space. The permissible business scope of sole proprietorship of Hong Kong residents covers retail, restaurants, computer services, advertising, clinic, economic, trade and management consulting services, etc.


3) Foreign invested enterprises (FIE)

There are mainly four types of foreign invested enterprises in mainland:

- Sino-foreign equity joint-venture (EJV)

- Sino-foreign cooperation joint venture (CJV)

- Wholly foreign-owned enterprise (WFOE)

- Foreign-invested partnership


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