Registration procedure model for establishing a WFOE in the People\u27s Republic of China

The purpose of this article is to present research outcomes and to compare the establishment of a limited liability company in the European setting and China, and, hence, design a uniform model that could serve to future investors as a framework or instructions for registering a fully foreign owned enterprise in China. A comparative theoretical study of company registration models in the selected European countries was used, 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 to 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