For most foreign investors a WFOE (wholly foreign-owned enterprise) is the default: full control, direct RMB billing, profit repatriation. JVs suit negative-list sectors or partner-resource deals; representative offices cannot invoice or earn revenue.
Comparison: WFOE — 100% foreign ownership (outside negative list), full operational control, can invoice (fapiao), hire directly, repatriate profits; cost: RMB 40,000-80,000 setup + annual compliance. JV — required in some restricted sectors (some value-added telecom, education, media); brings partner resources but shared control and exit complexity. Representative Office (RO) — cheapest, but CANNOT generate revenue, invoice, or sign trade contracts; only liaison/marketing functions; still needs annual filing. Practical default: WFOE for trading/services/manufacturing; RO only for early market study; JV only when the negative list or a strategic partner demands it.
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Zhonghui Consulting handles FDI registration, WFOE setup, banking, accounting, and foreign-staff compliance end-to-end — fixed fees, English-speaking team, ICPA-licensed delivery.
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