There are three forms of incorporation. They are as follows:
Wholly Foreign-owned Enterprise (WFOE)
A limited liability company registered with foreign capital under Chinese Company Law. WFOE's are among the most popular corporate models for non-PRC investors due to their versatility and unique advantages.
Sino-Foreign Equity Joint Venture (EJV)
A limited liability company incorporated by a Chinese partner and a foreign company. The partners share profits, losses and risk in equal proportion to their respective contributions to the venture's registered capital.
Sino-Foreign Co-operative Joint Venture (CJV)
A joint venture between a Chinese and a foreign company within the territory of China. The Chinese company provides the labour and land while the foreign company brings in the necessary technology and capital.