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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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    TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021

    Email: jojohu@shanghaiinvest.com

     

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