China question: Where should I form my WFOE?
July 16, 2013 | BY
clpstaff &clp articlesI want to form a WFOE and, while I understand there are some attractions to setting up outside the major cities, I would like to know more about the legal challenges this entails
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The domestic perspective
Various factors should be taken into consideration when selecting the location of your WFOE. These include the business type of the WFOE (trading, consulting, commercial activities or investment), the location of target clients, dependency of the WFOE's business on natural resources and transportation facilities. Certainly, big cities may not always be the most ideal choice to locate your investment and the following alternatives may be attractive to foreign investors.
Central and western regions
Foreign investments in the less-developed central and western regions enjoy special preferential policies by virtue of the government's effort to stimulate a more balanced economic development throughout the country.