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Joint Venture (JV)
A Joint Venture is a business arrangement consisting of two partners (one Chinese, one foreign) creating a new business entity. Both take equalresponsibility for management, expenses, profits and losses.
Joint Ventures are sometimes the only way to register in China if a certain business activity is still controlled by thegovernment, e.g. construction, car manufacturing, cosmetics etc.
Wholly Foreign-Owned Enterprise (WFOE)
The WFOE is a business arrangement where a foreign company invests on itsown without a Chinese partner. Earlier on, the WFOE format was predominantly used for service providers such as consulting and management services, software development and trading.Increasingly, more manufacturing enterprises are now also using the WFOE route to establish a presence in China.
Representative Office
Representative Offices are establishedby foreign companies to engage in activities such as business liaison, product promotion, market research and technology transfer.
Representative Offices are not officiallyallowed to directly engage in operational activities. Similarly they may not invoice or receive payment in China.
Other Business Setup services include:
* Recommendations andadvice on office space, location and related issues
* Phone, secretarial and administration support
* Advice on staffing costs
* Assistance with key staff appointments.
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