by the foreign investor . It can generate income , pay tax in China and it ' s profit could be repatriate back to investor ' s home country . Any enterprise in China which is 100 percent owned by a foreign company or companies can be called as WFOE . No . minimum registered capital is required for WFOEs with scope of business of consulting , Trading , retailing , information technology etc . in China . There are minimum registered capital still required for some industries for instance : Banking , Forwarding etc Since China still maintains foreign currency control policy , it ' s still advisable to choose registered capital within RMB 100,000 ~ RMB 500,000 as the minimum registered capital . Companies can now determine how much capital will be required to maintain their operations and must simply ensure that they meet those targets within a period of 10 years .
Representative Office ( RO ) is a Liaison Office of it ' s parent company . It requires no registered capital . It ' s activities would be : product or service promotion , market research of it ' s parent company ' s business , Quality Control liaison office etc in China . RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China .
Joint
Venture ( JV ) is a Limited liability company formed between Chinese investor and Foreign investor . The parties agree to create a entity by both contributing equity , and they then share in the revenues , expenses , and control of the enterprise . JV usually been used by foreign investor to engage the so called restricted in areas such like : Education , Mining , Hospital etc .
Since March 1 , 2010 : Measures of Establishment of Foreign Invested Partnership Enterprises ( FIPE ) in China is taking effect . The regulation , which take effect since March 1 , 2010 , are known as the Administrative Measures for the Establishment of Partnership Enterprise in China by Foreign Enterprises or Individuals . There ' s no required minimum registered capital for a Foreign Invested Partnership