Shareholders
Shareholders exercise ultimate authority within a China WFOE, establishing organizational objectives, defining policies, and appointing leadership. They bear responsibility for contributing the entity’s registered capital.
Executive Director/Board Structure
Directors implement the strategic agenda outlined by shareholders. Boards typically comprise an odd number of members (1, 3, 5), with a chairperson appointed for boards of three or more.
Legal Representative
The Legal Representative holds executive authority to act on behalf of the company and bears personal liability for organizational compliance. This position carries exceptional responsibility and decision-making power.
Recent regulatory changes (July 2024) allow greater flexibility in appointing legal representatives, permitting them to serve in various leadership capacities and giving international companies more options for trusted appointments.
Read more about The Practical Meaning of A Company’s Legal Representative in China
Financial Officer
This position carries responsibility for financial compliance, reporting accuracy, and regulatory timeliness. While not performing comprehensive CFO functions, financial literacy is beneficial for this role.
Tax Authority Liaison
This individual manages routine interactions with tax authorities, handling invoice procurement, tax filings, and document management. They require local contact information and Chinese language proficiency.
Recommended Additional Positions
General Manager
The General Manager oversees daily business operations, supervises activities, and maintains Board communication.
Supervisory Role
The Supervisor monitors executive performance and prevents authority misuse. This position cannot be filled by managers but can be held by shareholders or junior employees.
Data Protection Officer
This specialist ensures compliance with China’s evolving data security regulations, maintaining current knowledge of requirements and ensuring organizational adherence.
