Launch Your Startup in China with 100% Ownership
The MOFCOM Foreign-Invested Partnership Enterprise (FIPE) is designed for global innovators. No local sponsor, reduced capital requirements, and a direct path to residency.
100% Ownership
Full foreign ownership of your China entity without the need for a local sponsor or partner.
Zero Minimum Capital
Unlike standard licenses requiring RMB 10M+, this track allows you to start with nominal capital (e.g., RMB 10,000).
Residency Support
Immediate eligibility for Investor Visas or Premium Residency for founders and their families.
Who is this for?
The "FIPE" license focuses on innovation and scalability. MOFCOM is looking for businesses that bring unique value, technology, or intellectual property to Mainland China.
Target Profiles:
- Venture-backed Startups (Pre-Seed to Series A+)
- Holders of Registered Patents or unique IP
- Graduates of approved Incubators/Accelerators
- Innovative Business Models (SaaS, Fintech, AI, etc.)
Document Checklist
- Pitch Deck / Business Plan: Detailing innovation & market strategy.
- Proof of Innovation: Patent certificates OR VC Letter of Intent OR Incubator Letter.
- Financials: Latest audited financials (waived for startups < 1 year).
- Company Documents: COI/AoA of the parent company (if applicable).
The Roadmap to Launch
Typical timeline: 3 - 6 Weeks
Prepare Profile
Develop a compelling Business Plan and organize Innovation Proof (Patents/VC). We refine this to meet MOFCOM standards.
MOFCOM Submission
Submit application via FIPE track. MOFCOM technical committee reviews the innovation criteria.
Licensing
Upon approval, pay the fee (~RMB 2,000 first year) and receive the Investment License.
CR & Visa
Issue Business License (SAMR), open bank account, and issue GM Visa.
Why Choose the Foreign-Invested Partnership Enterprise (FIPE)?
| Feature | Foreign-Invested Partnership Enterprise (FIPE) | Standard Service License |
|---|---|---|
| Minimum Capital | Zero / Nominal | Usually RMB 500k+ (on paper) |
| Govt Fees (Year 1) | ~RMB competitive rates | RMB competitive renewals |
| Ownership | 100% Foreign | 100% Foreign |
| Key Requirement | Innovation / VC | Financial Track Record |
Structure & Tax Flexibility
Pass-Through Taxation
One of the most significant advantages of a Foreign-Invested Partnership Enterprise (FIPE) in China is that it is not subject to standard Corporate Income Tax (CIT). Instead, profits flow directly to the partners, who are individually taxed based on their share. This effectively avoids the "double taxation" that occurs in standard LLC/WFOE models.
Key Advantages:
- No 25% Corporate Income Tax liability
- High flexibility in profit distribution
- Simplified dissolution processes
Ideal Industries for FIPE
Given its partnership nature and tax structure, the FIPE is highly favored by professional service networks, investment funds, and asset managers looking to establish a dynamic footprint in Mainland China.
- Venture Capital (VC)
- Private Equity (PE) Funds
- Law Firms & Consulting
- Design & Architecture Studios
- Accounting Networks
- Investment Management
Frequently Asked Questions
What is the difference between a WFOE and a FIPE?
A WFOE is a Limited Liability Company (LLC) where the company pays Corporate Income Tax on profits. A FIPE is a partnership model without corporate tax liabilities—profits are taxed exclusively at the partner level.
Does a FIPE require a Chinese partner?
No. A FIPE can be wholly foreign-owned. You essentially have global partners investing and collaborating to form the entity, retaining 100% foreign integration and control.
Can a FIPE hire foreign employees and sponsor visas?
Yes, a FIPE is fully capable of processing Z-Visas (Work Visas) and securing residence permits for foreign personnel exactly like a standard WFOE.