Chengdu WFOE Registration Service
Hotline: 86-755-82143422 Email: anitayao@citilinkia.com
The Wholly Foreign Owned Enterprise(WFOE) is a Limited liability company wholly owned by the foreign investor(s). In China, WFOE's were originally conceived for encouraged manufacturing activities that were either export orientated or introduced advanced technology into China. However, with 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.
Advantages of WFOE
From the foreign investors’ point of view, the advantages of establishing a WFOE include: 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 (Chinese Currency) and receive RMB revenues. .Convert RMB profits to US dollars for remittance to their parent company outside China, Employ staff directly within China, Protection of intellectual know-how technology and trademark. Not required to share profits with Chinese counterpart; and Greater efficiency in its operations, management and future development.
Business Scope
One of the most important issues covered in the project documentation is the business scope of the WFOE. Business scope is narrowly defined for all businesses in China and the WFOE can only conduct business within its approved business scope, which ultimately appears on the business license. Amending the business scope requires further application and approval. Inevitably, there is a negotiation with the approval authorities to approve as broad a business scope as is permitted. General business scope usually includes, investment consulting, international economic consulting, trade information consulting, marketing and promotion consulting, corporate management consulting, technology consulting, manufacturing, etc.
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Term
In China, terms of 15 to 30 years are typical for a manufacturing WFOE (although some may have a longer term). It is also possible to obtain extensions of the WFOE’s duration. For projects in which the amount of investment is large, or the construction period is long and the return on investment low, projects producing sophisticated products using advanced or key technology provided by the foreign partner, or for projects producing internationally competitive products, the term of WFOE may be extended to 50 years. With special approval from the State Council, the term may be even longer than 50 years.
The WFOE may be terminated under certain conditions, for example, the inability of the WFOE to operate due to heavy losses, in the occurrence of an event of force majeure, etc.
If you want to set up a WFOE in Chengdu, you should offer the following documents:
A project proposal and feasibility study report ( in print and under the company seal) ; .
Original copies of the application paper and the resolution by the Chairman of the Board of the foreign investor (in printed form signed by members of the Board and with company chop);
Copies of the business licenses or certificates of incorporation of the foreign investor (usually with the permission chop from the government department.);
An original copy of leasing agreement with chop of the Housing Department;
Directors name list of board or management institution name list, importing equipment list;
An original copy of the corporate ratification paper (2 copies in duplicate);
Two original bank credibility letters for the foreign investors, stating a 7-digits bank balances, issued within 6 months in both English and Chinese language;
A copy of the approval paper for corporate formation and other papers for company alterations (the original are required for check-up);
Notice of enterprise’s name confirmation appraised by the Industry & Commerce Administrative
Bureau;
Contracts and charter versions (signed by legal representative or Bailor);
Two photos of the legal person of WFOE.;
An application form for company alteration;
A copy of the stub of corporate certificate of approval;
Whole set of materials for application of project establishment and approval documents(original)for project establishment;
Procedure
Drafting application papers, standard articles of association, standard feasibility study, and providing samples for necessary documents such as board resolution, bank reference letter, etc., The application papers and resolution should be signed by the Chairman of the Board (in printed form with company chop)
Obtaining approval and relevant certificate by Foreign Economic and Trade Bureau
Researching and obtaining approval for the company name of WFOE from Industrial and commercial registration office.
Obtaining approval or certificates from various authorities such as the Planning Bureau, the Foreign Economic and Trade Bureau, the Industrial And Commercial Registration Office, the Statistics Bureau, the National Taxation Administration Bureau, the Local Taxation Administration Bureau, the Public Security Department, the Environmental Protection Bureau. the foreign Exchange Administration Bureau and the Customs etc.
Opening necessary bank accounts, obtaining a report of corporate capital verification issued by a Chinese certified public accountant(CPA). Be ready with the original copy for check-up.
Obtaining the necessary work permits and resident permits for the legal representatives, etc.
Contact Us
If you have further queries, 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 at86- 028-86676605 , or emailing to 2355725123@QQ.com.
You are welcome to our company Unit 1303, 13/F，Shidai Fengshang Bldg. 123 Caoshi St. Qingyang Dis. Chengdu China
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