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WFOE / Foreign Company Setup

WFOE vs Representative Office in China

The right structure depends on whether the investor needs revenue activity, contracts, invoicing and staff in China.

Main difference

A WFOE is normally used for business operations and revenue activity. A representative office is more limited and usually fits liaison or market research needs.

Decision points

  • Need to sign local contracts
  • Need RMB invoicing
  • Need local staff
  • Need import-export or service revenue
  • Need long-term China operation
Practical note: Before consultation, prepare investor information, the expected business activity, product or service details, preferred location, permit questions and the planned staffing or accounting workflow.