Enter the China Market
With the Right Structure
From a lightweight Representative Office to a fully operational WFOE, Echo Olesen Global guides foreign investors through every step of establishing a legal entity in mainland China — using Hong Kong as your strategic gateway.
Three Ways to Enter China
Each structure serves a different business purpose. We help you choose the right one from day one.
The most popular structure for foreign investors entering China. 100% foreign-owned, able to sign contracts, issue Chinese invoices (fapiao), hire local staff, and repatriate profits.
- Trading & distribution
- Manufacturing
- Professional services
- E-commerce (cross-border)
A lightweight, non-profit-generating presence in China. Ideal for market research, liaison activities, and building relationships before committing to a full entity.
- Market research & testing
- Supplier liaison
- Brand awareness campaigns
- Pre-entry due diligence
A co-investment structure with a Chinese partner. Required for certain restricted industries and ideal when local relationships, distribution networks, or government connections are essential.
- Restricted industries (media, telecom, education)
- Leveraging local networks
- Government-related projects
- Real estate & infrastructure
WFOE vs RO vs Joint Venture
Use this table to identify which structure fits your business stage, budget, and goals.
| Criteria | WFOE Wholly Foreign-Owned Enterprise | RO Representative Office | JV Joint Venture |
|---|---|---|---|
| Can Generate Revenue | ✅ Yes | ❌ No | ✅ Yes |
| Foreign Ownership | 100% | 100% | Negotiated (typically 25–75%) |
| Registered Capital | No statutory minimum | None required | Negotiated with partner |
| Registration Timeline | 3–6 months | 1–3 months | 4–8 months |
| Can Issue VAT Invoices | ✅ Yes (fapiao) | ❌ No | ✅ Yes |
| Can Hire Staff Directly | ✅ Yes | ❌ Via agency only | ✅ Yes |
| Profit Repatriation | ✅ 5% WHT (via HK holding) | N/A — no profits | ✅ Per JV agreement |
| Corporate Income Tax | 25% CIT (15% high-tech) | Deemed profit tax | 25% CIT |
| Chinese Partner Required | ❌ No | ❌ No | ✅ Yes |
| RMB Bank Account | ✅ Full corporate | ✅ Limited RO account | ✅ Full corporate |
| Complexity | Medium | Low | High |
| Best For | Trading, services, long-term ops | Market research, pre-entry | Restricted industries, local networks |
Why Use Hong Kong as Your China Gateway?
Most foreign investors structure their China operations through a Hong Kong holding company — for good reason.
Gateway Advantage
Hong Kong-incorporated entities are treated as foreign investors under Chinese law, enabling clean holding structures and simplified profit repatriation via CEPA.
Legal Certainty
HK-China CEPA provides preferential access. Disputes can be resolved under Hong Kong common law, offering greater legal predictability than mainland courts.
Tax Efficiency
Dividends from a China WFOE to a Hong Kong holding company are subject to a reduced 5% withholding tax (vs. 10% for other jurisdictions) under the HK-China tax treaty.
One-Stop Service
Echo Olesen Global handles both your Hong Kong holding company and your China entity registration — coordinating legal, accounting, and banking from a single point of contact.
How We Handle Your China Entry
Free Consultation
We assess your business model, target city, industry, and timeline to recommend the optimal entity type and structure.
Document Preparation
We prepare all required documents: company name reservation, articles of association, registered capital plan, and director/shareholder KYC.
Government Filing
We liaise with the relevant Chinese authorities (SAMR, MOFCOM, local AIC) to complete registration and obtain your Business Licence.
Post-Registration Setup
We assist with bank account opening, tax registration, chop (company seal) production, and initial compliance setup.