Entity options
Mainland China entity types for foreign investors
Most foreign investors in Lu'an choose one of three structures. Each has different requirements for capital, control, staffing and permitted activities.
Most common
Wholly Foreign-Owned Enterprise (WFOE)
A limited liability company owned entirely by a foreign investor or company. You control management and profits, and the company can carry out the business activities listed in its scope of business.
Often suits: trading, consulting, manufacturing, e-commerce and service businesses that want full control and a local legal entity.
Partnership
Joint Venture (JV)
A company formed with one or more Chinese partners. Ownership, capital contributions, governance and profit sharing are set out in the joint venture contract and articles of association.
Often suits: investors who need local market access, land, licences or partner expertise, and who are prepared to share control.
Limited activity
Representative Office (RO)
A non-profit-making liaison office that can carry out market research, liaison and coordination for its parent company. It cannot sign contracts or earn revenue directly in China.
Often suits: overseas companies testing the Anhui market or coordinating suppliers before committing to a full company.