Foreign investors have a variety of options when considering the establishment of a business presence in China. The primary types of foreign-invested entities(FIE) include:

Wholly Foreign-Owned Enterprise (WFOE/WOFE): This type of entity is 100% owned by foreign investors, allowing them to operate independently without a domestic partner. It is suitable for businesses seeking full control over their operations and intellectual property.

Equity Joint Venture (EJV): In an EJV, a foreign investor enters into a partnership with a Chinese company, sharing the ownership, profits, and management responsibilities according to the agreed equity ratio. This structure can provide local market knowledge and resources.

Cooperative Joint Venture (CJV): Similar to an EJV, but with more flexible profit-sharing and investment terms. The agreement can be based on contributions, which may include cash, land use rights, buildings, intellectual property, or other assets.

Representative Office (RO): Primarily serving as a liaison for foreign companies, an RO is not allowed to generate revenue directly but can conduct market research and facilitate business relations.

Foreign Invested Commercial Enterprise (FICE): FICEs are foreign-owned companies engaged in wholesale, retail, and franchising activities in China. They can operate as WFOEs or joint ventures.

Each type of entity has its own advantages and requirements, and the choice often depends on the specific business objectives and the industry in which the company operates. Foreign investors are encouraged to seek professional advice to determine the most suitable structure for their business needs.