Innovation Norway can help you with both company establishment and business registration. There are several different options for a Norwegian company to set up a legal form of business in China.
It could either be done as a Wholly Foreign Owned Enterprise (WFOE), Sino-Norwegian Joint Venture (JV), or as a Representative Office (Rep. Office).
WFOE
WFOE is the most popular choice, as it is a limited liability company. WFOEs can conduct market research, develop partnerships and business channels, as well as conduct business transactions within China and hire local employees on its own accord. WFOEs do have a minimum investment requirement which is dependent upon the locality and nature of the business.
Rep. Office
Rep. Office represents the interest of the foreign investor by acting as a liaison office for the parent company. Rep.Offices does not have a minimum investment requirement, and are the least complicated way for a foreign firm to have a legal presence in China. However, Rep.Offices cannot engage in business transactions or directly hire locally employees, and can thus only be used as a platform for direct country-to-country trade.
JV company
JV companies require capital investments from both local and foreign firms. The percentage of the capital investment regulates the amount of profit and risk which both the foreign and local enterprise shoulders. Foreign firms entering industries where WFOE’s cannot operate often use JV’s, however this is becoming less of an issue as more and more industries open up to WFOE’s.
What are the benefits and limitations for these three different models? Which entity is most suitable for you depend on your business and needs?
The various legal forms offer differing limitations and opportunities. Innovation Norway’s consultants can assist in the choice of company form, and help to register it.
Assistance in the establishment phase
As an alternative to engaging personnel and renting a local office, Innovation Norway can offer qualified business consultants who work for the Norwegian company.