Chinese onshore entities

From our offices in offices in Hong Kong, Shanghai and Beijing, ILS provides expert services in the establishment and administration of companies for international clients, local enterprises and as a stepping stone to doing business in China.

Through its global products and services ILS serves the China market by providing high level fiduciary solutions for clients wishing to do business in China with the expertise, consultancy services and structures required in order to succeed.

The massive expansion of trade in and out of China, some of which goes through Hong Kong, means that there is a high demand for business support services, such as those offered by ILS.

Joint Venture Company (JVC)

In a JVC is established when a foreign person or entity goes into business with a Chinese person or entity.

This type of China company formation is usually set up as a limited liability company, with liability limited to the contribution of the shareholders. There is no minimum foreign contribution requirement for a JVC, allowing for foreign minority shareholders. Contribution is not required to be monetary, as it can also be ‘in kind’, including labour, resources and services.

Wholly Foreign Owned Entity (WFOE)

In recent years over 65 per cent of foreign investments in China have been in the form of a WFOE, mainly because of the absence of a minimum and maximum investment requirement.

The unique feature of a WFOE is that involvement of a Chinese investor is not required unlike most other investment vehicles. This can give greater control over the business venture in China and avoid a multitude of problematic issues which can potentially result from dealing with a domestic joint venture partner.

Representative Office (RO)

A Representative Office is a useful and inexpensive corporate vehicle through which a foreign presence can be established. However, ROs are restricted in their activities.

They can be valuable in market research, marketing and sales administration, project investigation for a parent company and hiring of local staff. ROs cannot invoice Chinese clients and premises must be rented in China.

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