2023-05-19Wholly Foreign Owned Enterprise and Representative Office Compared
(a) The proposed name of the WFOE |
(a) As the RO is not a Chinese company it does not enter into business transactions as a Chinese company, but as a foreign company. |
(a) As a foreign company office in China, the RO does not fall under the labor law for Chinese companies. As well it is not entitled to enter into own arrangements with local staff as it cannot register for and provide social welfare. |
(a) The RO is liable to pay taxes in China, though it is not a Chinese company. These taxes can be calculated in 2 ways, subject to the approval by the Chinese Government: |
The RO must be approved before it can be established. The approval includes checking of: |