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Registration procedure model for establishing an WFOE in People`s Republic of China [Elektronski vir]
Polajžer, Boštjan, 1970-
The purpose of the following article is present research outcomes of registering a wholly foreign owned company in China, and to compare it with the establishment of a limited liability company in ...the European setting. With the help of an interview method, we obtained information from the selected respondents, and this information served us to verify and to compare the European and Chinese ways of company registration. The information obtained in this manner was analyzed, and served as a basis to draw up a model of registering a wholly foreign owned enterprise in China. We used comparative theoretical study of company registration models in the selected European countries, on the basis of which we observed that registering a limited liability company in the European setting does not differ significantly from country to country. All national and local legislation as well as the procedures in the EU countries are relatively similar, the only difference in the European setting can be observed in the amount of the start-up capital required and the time for establishment that can take from 1-30 days. The research enabled us to set up a uniform theoretical model of establishing a limited liability company in the European setting. On the basis of the research, we established a uniform model that should serve as guidance to future foreign entrepreneurs who intend to establish a wholly foreign owned company in China. The research contributed towards the clarification of some important issues faced by European as well as other international investors who plan to establish a wholly foreign owned company in China, or a company resembling those they establish in their own countries,in their full ownership. The mentioned research and the model of establishing a wholly foreign owned enterprise can serve a guidance or instruction to foreign investors planning to establish their own company in China.
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