To set up a Representative Office (hereinafter referred to as “RO”) in China used to be a common way for foreign investors that intend to enter into China. The main reason is that RO is easy to establish. However, China has imposed more registration restrictions and tougher tax rules on Representative Offices since 2010. The establishment and maintenance of representative offices have been restricted and discouraged.
WFOE is an independent legal entity registered with only foreign capital in China and under Chinese law. The managing director (if only one director is appointed) or Board of directors and legal representative are appointed by the foreign parent company. The WFOE abides by the Chinese company law and regulations like any other Chinese company.
To proceed the change of company name, you shall conduct a name availability search with the competent registry office first. An approval for the new company name shall be obtained before you apply for the change of company name with the competent registry office. Upon receipt of the approval for the new company name, you shall go through the following procedures:
On 1 January 2020, the Foreign Investment Law of the PRC came into effect and replaced the Law of the PRC on Chinese-Foreign Equity Joint Ventures, the Law of the PRC on Chinese-Foreign Contractual Joint Ventures and the Law of the PRC on Wholly Foreign Owned Enterprises. Since then, foreign invested enterprises in China are no longer divided into sino-foreign equity joint ventures, sino-foreign contractual joint ventures or wholly foreign owned enterprises