Shanghai WFOE Registration Service
Hotline: 86-755-82143348 Email: anitayao@citilinkia.com
Business Registration is also called company setup, corporate formation, business setup, company incorporation, business establishment, means company established in accordance with the Companies Act, all capital invested by shareholders.
I. Types of Business Registration
There are several types of business setup in shanghai; the following are common types for business registration:
1.Wholly foreign owned enterprise (WFOE);
2. Representative office (RO);
3.Cooperative joint venture (CJV);
4. Equity joint venture (EJV);
5. Foreign invested partnerships enterprise (FIPE).
II. Business Registration--Wholly Foreign Owned Enterprise
The registered capital of a Wholly Foreign Owned Enterprise (WFOE) should be subscribed and contributed solely by foreign investor(s). A WFOE does not include branches established in Shanghai by foreign enterprises and other foreign economic organizations.
Advantages of Wholly Foreign Owned Enterprise (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、No requirement for Import / Export license for its own products;
6、Full control of human resources；
7、Greater efficiency in operations, management and future development.
III. Business Registration---Joint Venture
A joint venture (JV) in Shanghai is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares.
Advantages of Joint Venture (include, but not limited to)
1、The use of local partner’s existing workforce and facilities;
2、Existing channels for sales and distribution;
3、Use of a partner’s network to build good relationships, avoid red tape and other bureaucratic complexities;
4、Entry into industrial sectors which exclude wholly foreign-owned investment.
IV. Business Registration--Branch and Representative
Shanghai branch or representative are the limited business scope. It is generally forbidden from engaging in any profit-seeking activities, and can only legally engage in:
1、Market research, display and publicity activities that relate to company product or services;
2、Contact activities that relate to company product sales or service provision and domestic procurement and investment.
From 2010 on, companies that intend to register a RO must be at least two years old. The registration certificate for an RO is only valid for one year. Every year when an RO renews its license, a notarized and legalized incorporation certificate of the parent company will need to be provided. In addition to the incorporation certificate, a bank reference letter will also will need to be notarized and legalized.
V. Business Registration contcat us
If you have further queries in Business Registration, please don’t hesitate to contact ATAHK at anytime, anywhere by simply visiting ATAHK’s website www.3737580.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-21-68877368 021-31397142 021-58822399, or emailing to hkcfm-shanghai@163.com. You are welcome to our company 15F, No.855 World Plaza, South Pudong Road, Pudong District, Shanghai, China.