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Guangzhou WFOE Registration

Update Date:2020-8-31 15:41:15     Source:www.3737580.com     Views:3358

China FIPE Formation Service

Hotline: 86-755-82148419 Email:susiehu@citilinkia.com

 

WFOE (wholly foreign owned enterprise) is a business entity formed in China entirely with foreign capital. It is totally under foreign control and does not have any formal Chinese ownership participation. For a foreign company to be able to issue receipts and export goods from China, it must be able to legally registered as a local company or a WFOE. A WFOE is set up as limited liability entity and represents separate legal persons and is taxed according to local legislation.


Guangzhou WFOE Registration-Advantages of WFOE in Guangzhou

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 on business rather than just a representative office function;
Issue invoices to their customers in RMB and receive RMB revenues. Convert RMB profits to US dollars for remittance to their parent company outside.
Cheap labor, which can lower your cost;
Not required to share profits with Chinese counterpart;
Greater efficiency in its operations, management and future development.


Guangzhou WFOE Registration-Application Documents for WFOE in Guangzhou

 

Part one, documents needed to be prepared abroad as follows

1. Original notarization of investor 's identification documents and endorsed by China Embassy or Consulate.

Part two, documents needed to be prepared in Guangzhou as follows
2. Minutes or resolution from investors or board of directors
3. One proposed name (in Chinese), and provide two or more alternative names in case the first name is not available.
4. Detailed information about the business scope and intended registered capital;
5. Detailed information of Company Membership; (E.g. legal representative, monitor, director) 
6 The lease of commercial office between leaser and lessee needed to be endorsed by the Housing Management Authority. The lessee should be acted by shareholders, directors, legal representative, monitors or manager. The area is required no less than 30 ㎡ and for commercial use only with more than one year’s rent.

 

Guangzhou WFOE Registration-General Procedures and Estimated Time Frame

WFOE company name reservation-1 work day
Business License Registration-3-5 work days
Application and engraving of Company stamps-1 work day
Bank account opening(basic account& capital account,apply by legal representative)-10-15 work days
Local Tax Registration-1 work day
Import and export companies also need the following steps:
Registration with Department of Foreign Trade and Economic-1 work day
Registration with local Customs-3 work days
Registration with China E-Port-5 work days
Foreign Exchange Registration-7 work days
Applying the foreign currency account (apply by your own)
 

 Guangzhou WFOE Registration-Taxation of WFOE in Guangzhou
Currently ,For small-micro companies out of the FTZ.
Corporate Income Tax(net profit): The annual tax payable not exceed RMB 1 million , tax rate is 5%; RMB 1 to 3 million, tax rate is 10%; over RMB 3 million, tax rate is 25%.
Value Added Tax(on turnover): Small-scale taxpayers: 3%  General taxpayers:6~ 13% (If no sale through the SZ WFOE, no VAT. RMB 300,000 within 3 months , no VAT.)

 

Guangzhou Contact Way
Guangzhou ATAHK Address:Room1001, 10/F, Unit A Fengxing Building, No. 240, Tianhe East Road, Tianhe District, Guangzhou
Guangzhou ATAHK Tel:86-20-87550061
Guangzhou ATAHK Website: http://www.gztannet.com
Guangzhou ATAHK E-mail:susiehu@citilinkia.com

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