China WFOE Formation

     At GOMAX International Service Center, we help international entrepreneurs and companies establish and operate their businesses in China. Whether you're entering the market or expanding an existing venture, our one-stop service ensures a smooth, compliant, and efficient setup.

·         Wholly Foreign-Owned Enterprise (WFOE)
This is the most popular structure for foreign investors who want full control. It allows 100% foreign ownership, the ability to issue invoices in RMB, and repatriate profits. It’s commonly used in consulting, trading, tech, manufacturing, and service industries.

·         Joint Venture (JV)
A JV is formed with a Chinese partner and is ideal for entering restricted industries or accessing local resources. It offers faster localization and access to sectors that require local ownership or support.

·         Representative Office (RO)
A RO is a non-profit liaison office that cannot generate revenue, sign contracts, or issue invoices. It is best for market research, brand presence, or building local relationships before committing to full market entry.

Common Mistakes to Avoid:  GOMAX helps you evaluate whether forming a company in China is the best option or if alternatives like umbrella companies or distribution partnerships may better suit your goals. If you decide to move forward with company formation, it is essential to work with a trusted professional. Avoid agencies that offer prices that seem too good to be true or push you to set up without a thorough assessment of your business needs.

     Keep in mind that setting up a company in China typically takes at least four months. Choose your location carefully—different cities offer different policies, costs, and industry advantages. Clearly define your business scope to avoid restricted sectors and to qualify for relevant incentives and future expansion.

Plan your capital beyond the minimum requirement to ensure the business can sustain operations through its initial phase. Draft your Articles of Association carefully—they are not just formalities but binding documents that shape your company’s structure and governance.

     Protect your intellectual property early by registering trademarks and patents in China. Finally, be realistic about the total cost of doing business. Issues such as employee turnover, legal compliance, logistics, and payroll management are common challenges that require proper budgeting and support.

If you're ready to explore your options, we’re here to guide you from planning to launch.
Contact us at: marketing@gomaxgroup.com