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Which company form is appropriate for a foreign investor?

There are two main legal company forms in China available for foreign investors: the limited liability company (LLC) and the company limited by shares. In practice, for most foreign investors the LLC is the appropriate company form.

Since the foreign investment law came into force on January 1, 2020, the term WFOE (wholly-foreign-owned-enterprise) is no longer used in the legislation. Instead, a company is established in accordance with the Chinese company law, whether it is foreign-invested or not.
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