Company formation in China is one of the best ways to enter a growing market, which is driven by sheer manufacturing, stable central government, excellent connectivity, world-class infrastructure, and start to reach millions of consumers with your products or services.


Establishing a company in China not only requires an understanding of your options but also the insight to consider your future needs. Being a boutique firm we provide every client with a tailored approach to every project.


Red Silk Consulting can assist you in identifying the business vehicle that is most suitable for you in order to accomplish your goals in China. The preferable option for you depends on your business sector, intended financial commitment, your overall company strategy and goals, your time-frame and other determinants. Common investment vehicles for foreign investors are the establishment of a Wholly Foreign Owned Enterprise (WFOE), Joint Venture (JV), Representative Office (RO), Holding Company, Regional Headquarter or a R&D Center.



Registering and opening a foreign business in China is often more complex than it seems. Approvals from multiple local authorities and bureaus, strict adherence to industry specific regulations, and a considerable amount of red tape are just a few of the obstacles that need to be dealt with. Services for a typical company incorporation includes the following:


>  Choosing the right legal entity

>  Handling the administrative procedure

>  Guiding you through the registration process

>  Ensuring red tape does not delay the incorporation

>  Making sure your company is registered within 1-3 months, depending on local policies


In addition, Red Silk Consulting offers company secretarial services as well as annual inspections and business license modification procedures.


Business license
Special certificates (if required)
Bank account
Required chops
VISA application processing
Social insurance account
Housing fund account
Office space & business address
CNY Invoicing
Virtual assistant

Which Type of Entity Suits Best Your Needs?

WFOE Wholly Foreign Owned Enterprise
Is a Chinese registered company that is completely owned by foreign investors (individual or corporate). WFOE is for a foreign company wanting independent operation in China, with the ability to invoice clients and make a profit a WFOE / WOFE is certainly the best option. A WFOE has full control of HR as well and can hire both foreign and local staff.


Benefits of setting up a WFOE:


Can make profits in China

Able to send funds overseas

Able to hire staff directly

Can be formed without a Chinese partner

The best option to protect IPR in China

Long-term licensing (15 to 30 years)


RO Representative Office
RO is the simplest and fastest option for overseas businesses to set up an operation in China. In simplest terms, it allows a foreign company to engage in market research or business operations in China, but not to make a profit. Register Representative office could save significant time and money.


Benefits of setting up a Representative office:


No registered capital is needed

Easier setup procedure

Low cost of setting up

Lower taxes

Conduct non-profit business activities

Faster setup procedure

Red Silk Consulting will assess you during all the pre-establishment considerations that you shall arrange before company formation in China. Our service coverage covers all China, among the most popular destination, are Shanghai, Beijing, Guangzhou, Suzhou, Hangzhou, Chongqing, Tianjin, etc. We can also support you in setting up a WFOE in a Free Trade Zone (FTZ) which provides benefits and incentives for foreign companies under specific conditions.

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