Company formation in China as a WFOE or joint venture, set up to operate

A wholly foreign-owned enterprise (WFOE) keeps control and is the default for most European businesses in sectors open to full foreign ownership under China's current Negative List. A joint venture is worth it where your sector still requires one, or where the partner brings something you cannot buy: a licence you cannot hold, a channel, or a manufacturing base. It should then be built with a shareholders' agreement that anticipates the partner's incentives changing. Most joint-venture disputes trace back to a document written when everyone was optimistic.

There is no universal minimum for most activities, but since the 2023 revision of the Company Law, in force since 1 July 2024, a limited liability company's shareholders must pay in the capital they declare in full within five years of incorporation. The figure you declare is therefore a real commitment, not a number on paper: it is visible to counterparties, and it affects how seriously you are taken and which licences you can obtain. We advise on it in the context of your actual plan rather than defaulting to a round number.

The main variables are the city and district, whether your sector needs a specific licence, and how quickly you can supply legalised documents from Europe. A straightforward WFOE in a well-established district is usually the fastest path; a licensed activity or an unusual scope of business adds review time at the licensing authority.

Registration hands you a working entity with a clear briefing on what must be filed monthly and annually from that point. Ongoing accounting, tax and compliance support is a separate, explicit engagement, arranged once you know what you need.