Comparison Table between Rep. Office, WOFE and Foreign Partnership Company

Wednesday, 04 March 2015 09:34

No.	Items compared	Representative Office (RO)	Wholly Foreign Owned Enterprise (WOFE)	Foreign Partnership Company
1	Legal entity or NOT	No	Yes	No
2	Business activities	Not allowed	Allowed within the scope of catalogue of industries for guiding foreign investment	Allowed within the scope of catalogue of industries for guiding foreign investment
3	Liability		Limited liability within the investment amount	General Partner: unlimited liability Limited Partner: Limited liability
4	Approval / registration authority	Administrative Bureau of Industry and Commerce	Ministry of Commerce and Administrative Bureau of Industry and Commerce	Administrative Bureau of Industry and Commerce
5	Direct employment	Not allowed	Allowed	Allowed
6	Employment of the foreign staff	No more than 4 foreign staff	No limitation	No limitation
7	Tax feasibility	No (the tax will be paid based on the total expense of the RO, around 11%)	Yes business tax as 5% VAT is 6% to 17% net profit tax as 25%	Profit tax of the Partner(s): For individual, IIT should be paid (rate from 3% - 45%) For enterprise, net profit tax is 25%
8	Business term	Not longer than the parent company’s term	30 years from the issuance of business license	30 years from the issuance of business license

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Ms. Jojo Hu

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