Type: Client Alerts
Short of establishing a registered presence in China, many foreign companies conduct business through purely contractual arrangements, such as trading, licensing or distribution agreements, with Chinese counterparties. These arrangements can continue without the foreign party needing to register a presence in China and the business can be developed and serviced through occasional customer or counterparty meetings in China under a business visa.
This short ‘crib sheet’ touches on different options for establishing a basic onshore presence where required or desired.
There are three principal forms of registered presence for foreign investors to conduct business in China: (i) a representative office (“RO”); (ii) a wholly foreign-owned enterprise (“WFOE”); and (iii) a joint venture (“JV”).