Sign In | Join Free | My spintoband.com
Home > business startup >

China WFOE Formation

China WFOE Formation

Email : tangjie881216@163.com
Contact Now

China WFOE formationis also called China WFOE setup, China WFOE registration, China WFOE incorporation and China WFOE establishment.

China WFOE is short for China Wholly Foreign Owned Enterprise (WFOE or WOFE) is a Limited liability China company wholly owned by the foreign investor(s). In China, WFOEs were originally conceived for encouraged manufacturing activities that were either export orientated or introduced advanced technology. However, after China's entry into the WTO, these conditions were gradually abolished and the WFOE is increasingly being used for service providers such as a variety of consulting and management services, software development and trading as well. With that, any enterprise in China which is 100% owned by a foreign company or companies or foreign individuals can be called as WFOE or WOFE.

China WFOE formation-Different Types of China WFOEThere are different types of China WFOE for foreign investors to select when they do the China WFOE registration; the types are defined in accordance with the different business activities.
If the WFOE only be allowed to manufacture here. We can say its manufacturing WFOE.
If the WFOE is allowed to do Consulting & Service, we call them Consulting WFOE.
If the WFOE is allowed to do Trading, Wholesale, Retail or Franchise in China, we call them Trading WFOE or FICE (Foreign-Invested Commercial Enterprise)

China WFOE formation-Business Scope of China WFOE
According to WFOE regulations, "Foreign investors are permitted to setting up a 100% foreign owned enterprise in industries that are conducive to the development of China’s economic benefits, and not prohibited or restricted by China government." In China, Business scope of a business is a "one sentence description" covering all of the present and future activities of the WFOE; it is essential this encompasses every envisaged scope of future activity. The WFOE can only conduct business within its approved business scope, since April first of 2014, the China Centre government carried out one new policy to relax the restriction in the business scope, Generally business scope includes investment consulting, international economic consulting, trade information consulting, marketing and promotion consulting, corporate management consulting, technology consulting, manufacturing, etc. After China's entry into WTO, more and more business is open to WFOE especially in Trading, Wholesale and Retail business, check the Catalogue of Guidance to Foreign Investment.

China WFOE formation-Registered Capital of China WFOERegistered capital of China WFOE is the amount that it's required to run the business until it can break even - the 'registered capital' is a guideline only. Although the head of China’s State Administration of Industry and Commerce (SAIC) announced in April of 2013 that the registered capital is greatly lowered to registered a WFOE in China, but if you do looking for a minimum registered capital, for instance RMB 30,000 (which is impossible to establish a WFOE in China) this means you will run out of money pretty soon, which leads to increased costs in reapplying for permission to increase capital, additional licensing fees and renewals of business licenses and so on. The WFOE needs funding via it's registered capital until it's about to support itself from it's own cash flow.

China WFOE formation-Advantages of China WFOE
The advantages of incorporation a WFOE, compared with other types of enterprises, include, but not limited to
1) Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner;
2) Ability to formally carry out business rather than just function as a representative office and being able to issue invoices to their customers in RMB and receive revenues in RMB;
3) Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
4) Protection of intellectual know-how and technology;
5) Full control of human resources
6) Greater efficiency in operations, management and future development.

China WFOE formation-Office address of China WFOE [Very important]Before submit the application forms of forming a WFOE in China, the foreign investor must rent a plant (manufacturing WFOE) or an office in advance, the office of WFOE can't be in a residence building, it should be commercial office building, Both residence and commerce (R&C) combined building and Virtual address is also able to register a WFOE in China main cities. But if the WFOE needs to apply for special permission license or employees’ working permit, then a normal office building in China for register a WFOE is a must. The minimum area for the China WFOE registration is 30M2; it should be bigger for the area if some special license such as food circulation license needs to be applied. Tannet will recommend our clients to take the commercial building office for the China WFOE registration in the future prospect.

China WFOE formation-Company name of China WFOE
Choosing the business name the official company name of a WFOE in China should be in Chinese. The Chinese name should be formatted as: first word -company name/product (For instance: MCK; second word: activity (For instance: business consulting); third word: location/name of city (For instance: Shanghai, Beijing); fourth word - company structure. (For instance: Co., Ltd.) With that a company called MCK register in Beijing engages Business Consulting Service LLC will be called: MCK business consulting (Beijing) Co., Ltd. The name then has to be registered with the local Administrative Bureau for Industry and Commerce (SAIC). The use of the word 'China' or 'International' in their Chinese name, have to have a minimum capital of US$10,000,000 instead of US$ 100,000. These words will have to be avoided therefore , although they are permitted in the non-Chinese name. Prior to any of the following applications, the investor(s) should reserve a name for its prospective WFOE with the local SAIC. This is called "Name Pre-registration" in China. SAIC requires that a proposed name and FIVE-EIGHT alternative names be provided. The State Administration of Industry and Commerce (SAIC) has the final say in whether a name is allowed or not.

China WFOE formation-General Tax Information of China WFOE
Since Jan. 1, 2008, China's new corporate income tax rates begins with 25% although some industries still enjoy a lower rate which is15%, the rate depends on the places where the company is registered and the industry that a company engaged. Please check the latest Corporate Income Tax Law of China above. All enterprises are required to report to the Tax Administration Department monthly, quarterly, annually. Path To China provides part time accountant service for our clients, you are welcome to contact us for more information.

Contact Us
If you have further queries, don’t hesitate to contact us anytime, anywhere by simply visiting website www.ono-bbb.net, or calling China hotline at 86-021-31397141, 86-
18930833905,86-0791-88167848,86-18970952901


Product Tags:

China Company Registration

      
China Customized Inflatable Bumper Ball Game Bubble Adult Grass CE supplier

China WFOE Formation Images

Inquiry Cart 0
Send your message to this supplier
 
From:
Enter your email please.
To: Hong Kong Tannet Group Co.,Ltd.
Subject:
Message:
Characters Remaining: (0/3000)
 
Inquiry Cart 0