For foreign investors looking to establish a direct operational presence in Mainland China, the two primary entry vehicles are the Wholly Foreign-Owned Enterprise (WFOE) and the Equity Joint Venture (EJV). The choice between these two structures is a critical strategic decision that depends on a company's specific industry, its business objectives, its appetite for risk, and whether it requires a local partner to succeed in the market. A WFOE provides the foreign investor with 100% ownership and control, offering greater autonomy over operations, intellectual property, and strategic direction.
A Joint Venture, on the other hand, involves a partnership with a Chinese entity, which can provide invaluable local market knowledge, established distribution channels, and government relationships. However, navigating the complexities of establishing and operating either of these entities requires deep local expertise and careful planning.
Zetland Fiduciary Group provides comprehensive, end-to-end support for foreign investors looking to establish a WFOE or a Joint Venture in China. From our office in Shanghai, our bilingual team guides you through every stage of the process. We help you to meticulously plan the entity's business scope and registered capital, design a robust governance structure, coordinate all the necessary government registrations and post-licensing setup steps, and integrate the new entity's accounting and tax processes into your group's framework, ensuring it can operate in a compliant and efficient manner from day one.
Our service provides a structured and efficient pathway to establishing your operational presence in China. The process begins with detailed planning and advisory, where we help you to define the new entity's intended business scope, determine the appropriate level of registered capital, and finalise the shareholder arrangements. For Joint Ventures, this includes providing support during the negotiation of the JV agreement to ensure your interests are protected.
Once the structure is finalised, we manage the entire setup process, which includes obtaining name pre-approval from the authorities, managing all the necessary approvals and registrations with the relevant government bodies, and arranging for the creation of the official company chops (seals), which are a critical element of corporate authority in China. We also manage the crucial process of opening the company's essential bank accounts, including its basic RMB account and any necessary foreign exchange accounts.
Following the issuance of the business licence, there are a number of critical post-licensing steps. Our team manages all of these, including the necessary registrations with the tax bureau, the social security and housing fund authorities, and the setup of the initial finance, tax, and basic HR operational frameworks. The outcome of our engagement is a fully licensed and compliant entity, supported by clear bilingual documentation and a robust governance structure, ready to commence business in the dynamic Chinese market.
Zetland Fiduciary Group operates a global network of offices to support clients across key international financial hubs. Whether you are seeking guidance on company formation, trust administration, accounting, or cross-border transactions, our local experts in Hong Kong, Shanghai, Singapore, and London are ready to assist.
Contact any of our offices directly for tailored advice and seamless service.