WuHu WFOE/Company Setup Service
Hotline: 86-755-82148419, Email:susiehu@citilinkia.com, Wechat: 13823131503
For a WFOE in China it means wholly foreign owned enterprise which is the most popular for overseas investor expand their business in China. To register a WFOE in WuHu ,China, there will be no requirements of the nationalities for investors. Also no requirements for format of shareholders. Both individuals and corporations can be acted as the WFOE shareholder. With at least one shareholder, one supervisor and one financial contact person can form the WuHu company.
As the WuHu WFOE/Company has also requirements on its management staff. It is important before its starting.
• Legal Representative: The WFOE must have one and only one Legal Representative. The Legal Representative must be an individual and cannot be a corporation. There is no restriction on the nationality of the Legal Representative, but he or she must be within the Chinese working age requirement (under 55 for women and under 60 for men). The Legal Representative is legally responsible the WFOE’s actions and has the highest authority of anyone within the WFOE. Legal Representative can open and close bank accounts, move funds, and sign contracts on behalf of the Wuhu company. The Legal Representative also must take at least another position as the director or the general manager of the WFOE, or both.
• Board of Directors: For WFOEs, the Board of Directors (BOD) must contain odd number of directors starting from 3 directors, up to 13 directors. The directors are appointed by the parent company/investor, and can be of any nationality. The directors do not need to work or reside in China, and they do not need to receive any stipends. If the WFOE chose not to have a BOD, then the WFOE can just appoint one individual to act as the Managing Director of the company.
• General Manager: General Manager (GM) is the person overseeing the operations of the WFOE. The GM can be of any nationality and must fits the Chinese labor regulation for working age.
• Supervisor: The supervisor’s responsibility is to supervise the WFOE’s activities to make sure that the WFOE does not do anything to harm investor’s interests and to stay compliant within the law. The Supervisor has the ability to check financial records of the WFOE, and call BOD meetings to bring any red flag activities to the director’s attention. The Supervisor can be of any nationality as long as he/she is not a member of the WFOE’s management team (to avoid conflict of interest).
• Financial Contact Person :The local government officer request to record a different person’s information in the official system in case they need contact in the future..
So you may reference the following samples of company structure for WuHu WFOE/Company:
One person as the director,general manager and legal representative
One person as the supervisor
One person as the shareholder and financial contact person
Or
One person as the shareholder , director,general manager and legal representative
One person as the supervisor
One person as financial contact person.
WuHu WFOE/Company Requirements
There are several prerequisites that investors must meet to qualify for WFOE setup. Some industries have higher standards for company setup and require higher qualifications. Below is a list of the minimum requirements for WFOE setup:
• WuHu WFOE/Company Registration Address: Before applying for the WFOE setup, the investing company must first sign an office rental lease minimum for one year in a commercial building. Based on the location of the office, the investor must apply for the WFOE setup at the local district’s foreign investment and business bureaus;
• WuHu WFOE/Company’s Registered Capital: Registered capital is the amount of investment capital that is required for the WFOE. The amount should be able to cover WFOE’s operational costs until it reaches breakeven. By law, the minimum registered capital for companies is 30,000 RMB, and different industries could have different its own standards. Due to the cost of operation has gone up significantly in recent years, 30,000 RMB is not deemed to be sufficient fund for startup companies. In Shanghai city area, the government will expect WFOE’s to invest at least 100,000 USD before giving license approval. The registered capital is not a deposit; it is working capital that the WFOE can use for its operations. The registered capital needs to be invested within five years of getting the business license.
Both the registration address and registered capital are required for WuHu WFOE/Company setup. And in both cases, the requirements can vary based on the type of business the WFOE engages in. Based on the industry, there could be additional license or requirements the investors must meet or acquire before applying for the WFOE business license.
Basically the procedure of WuHu WFOE/Company formation is this: after receiving the required documents, it takes us half working day (business days, of course) to reserve the company name and draft the Articles of Incorporation and the other drafts, then we send the drafts to you for signing. After the documents are properly signed, you will send them to us (presumably by courier) and once we will receive them we will review them and feedback. Afterwards we will submit the whole documentation to the Government Register Department and it will take 5-8 business days around to have the company registered.
If the supervisor and financial contact person are not in China for the signature in the counter of the registry department, they may do video witness for their signature .
WuHu WFOE/Company setup procedure is quite complex. It is better to entrust an professional agency to provide the proper advice and cover company one-stop compliance service .
Contact
For furthur queries, you are welcome to visit us anytime, anywhere by simply visiting our website www.3737580.com or calling at 86-755-82148419, or emailing to susiehu@citilinkia.com.