Entity Guide
WFOE vs Joint Venture vs Rep Office
The most common question from foreign investors: which entity type is right for me? Here's a practical comparison based on real-world setup experiences.
Side-by-Side Comparison
| Feature | WFOE | Joint Venture (JV) | Rep Office (RO) |
|---|---|---|---|
| Foreign Ownership | 100% | 25%-49% (typically) | Not applicable |
| Revenue Generation | Full operational | Full operational | Prohibited — liaison only |
| Control | Full management control | Shared with Chinese partner | Limited to liaison activities |
| Setup Time | 8-12 weeks | 12-16 weeks | 4-6 weeks |
| Setup Cost | Moderate-high | High (legal + negotiation) | Low |
| IP Risk | Lower (full control) | Higher (partner access) | Minimal (no operations) |
| Capital Requirement | Registered capital required | Registered capital required | No capital required |
| Best For | Full business operations | Restricted industries | Market research / testing |
Foreign Ownership
WFOE: 100%
JV: 25%-49% (typically)
RO: Not applicable
Revenue Generation
WFOE: Full operational
JV: Full operational
RO: Prohibited — liaison only
Control
WFOE: Full management control
JV: Shared with Chinese partner
RO: Limited to liaison activities
Setup Time
WFOE: 8-12 weeks
JV: 12-16 weeks
RO: 4-6 weeks
Setup Cost
WFOE: Moderate-high
JV: High (legal + negotiation)
RO: Low
IP Risk
WFOE: Lower (full control)
JV: Higher (partner access)
RO: Minimal (no operations)
Capital Requirement
WFOE: Registered capital required
JV: Registered capital required
RO: No capital required
Best For
WFOE: Full business operations
JV: Restricted industries
RO: Market research / testing
⚠️ Important: Check your industry against the negative list before choosing. Restricted industries may require a JV regardless of preference. Use our Access Checker to verify first.