Structures
Entity Options in Mainland China
Foreign investors setting up in Inner Mongolia generally choose between a wholly foreign-owned
enterprise, a joint venture, or a representative office. Each suits a different stage and purpose.
WFOE
Wholly Foreign-Owned Enterprise
A limited liability company owned entirely by the foreign investor. It can be set up to carry out
approved business activities such as trading, consulting, manufacturing or services.
- Full control over management and operations
- Can generate revenue within its approved scope
- Requires registered capital, premises and statutory officers
- Business scope must reflect the intended activity
Often considered by companies intending to trade or operate directly in the region.
JV
Joint Venture
A company formed with one or more Chinese partners. Ownership, governance and profit sharing are
set out in the joint venture contract and articles of association.
- Access to a local partner's networks and knowledge
- Useful where local licensing or land access matters
- Requires careful drafting of governance and exit terms
- Partner alignment is central to long-term success
Common in project-based, industrial or resource-linked activities.
RO
Representative Office
A non-profit-making liaison presence. A representative office may carry out permitted
联络 activities such as market research and coordination, but it cannot engage in direct
business operations.
- Lighter footprint for market exploration
- Cannot invoice for services or trade in its own name
- Chief representative and premises are required
- Scope of permitted activity is limited
Suited to companies testing the market before committing to a full entity.
Note on Hong Kong, Macau and Taiwan investors
Investors from Hong Kong, Macau and Taiwan are treated under separate arrangements for investment
into mainland China, and their own local company formation regimes are distinct from mainland law.
If you are incorporating in Hong Kong, Macau or Taiwan itself, the local companies ordinance and
registry rules apply — not the mainland WFOE framework described above. Where such an entity then
invests into Inner Mongolia, the mainland rules and approvals for that investment still apply.
We are happy to clarify which regime applies to your situation before any filing begins.