The Concept of Shanghai WFOE Registration Service
Shanghai hotline: 021- 68877368
The Concept of Shanghai WFOE Registration, now we make explaination for you.
The Definition
The Wholly Foreign Owned Enterprise (WFOE or WOFE) is a Limited liability 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 entried 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 can be called as WFOE.
Advantages of WFOE
The advantages of incorporation a WFOE, compared with other types of enterprises, include, but not limited to:
Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner;
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;
Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
Protection of intellectual know-how and technology;
For Manufacturing WFOE, no special requirements for Import / Export license for its own products;
Full control of human resources;
Greater efficiency in operations, management and future development.
Company Name
Company name is irreproducible.
Constituting name: Company name generally consists of four parts :administrative divisions + name + industry characteristics+organizational form.
EG: Shanghai-Honglin Trade Co.,Ltd. --- Honglin (Shanghai) Trade Co., Ltd.
Requirements for Capital and Shareholder, Director,Supervisor,Leagal person
About: Capital . Subscribed capital system is applied. However, Finance lease,Travel Agency, and Fund Management Company still be appropriate for Real payment system.
For the manufacturing enterprise, the registered capital is usually required USD 140,000 or above (USD 200,000 is much better)；For the trading enterprise, the registered capital is usually required as much as USD 140,000; For the service sectors, such as consultancy, technology, market research and development, the registered capital is usually required USD 100,000.(All of the registered capital must be paid).
Shareholder:at least one aged over 18 years old foreign natural persons or legal persons(inculd hongkong,macao and taiwan)
Director :can be foreignor or chinese;
Supervisor :whether Chinese or foreign can hold this position, if only one shareholder, supervisor is provided.
Leagal person: can be foreignor or chinese; it can be shareholder or director or not.
Shanghai registered foreign companies registration process
Power of Attorney - advance payment - check names (Commerce and Industry Bureau) - articles of association, the feasibility study report - investment approval and approval certificate (ECA) - business license (Commerce and Industry Bureau) - Registration and production of seals, financial seal, legal representative, signet - organization code certificate (technical supervision) - tax Registration Certificate (IRD) - Foreign Exchange Registration Certificate (SAFE) - statistics registration (Statistics Bureau) - Finance registration Certificate (Finance Bureau)
Contact Us
For further queries, please do not hesitate to contact Tannet at anytime by calling
Shanghai Hotline: 021-68877368, 18101640557
Fax：58402186
E-Mail: hkcfm_shanghai@163.com
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