Shenzhen WFOE formation service

Shenzhen WFOE Formation Service
Shenzhen hotline: 86-755-82143348   Email: amyhuang@citilinkia.com

If you want to invest in China, you don't just turn to the relevant government departments for so many certificates and formalities.

I. OVERVIEW OF SHENZHEN

Shenzhen is the best choice for doing business in China. Situated in the Southern China, Shenzhen is the first Special Economic Zone since China carried out reform and open-door policy 33 years ago. Shenzhen has an area of 1953 square km’s and a population of more than 10 million. Shenzhen is the best city both for living and working in China as well as the youngest and fastest growing city in the world. In Shenzhen you can enjoy the sound infrastructure and the intensive industrial chain for manufacturing, trading and value investment. Since Shenzhen is bordering Hong Kong, you can also take great advantage and opportunity from the “one country, two systems” policy

II. THE CONCEPT OF WFOE
WFOE stands for wholly foreign owned enterprise, which is a Limited liability company wholly owned by the foreign investor(s). The foreign investors refer to the foreign enterprise, individual or partner. (Including Hong Kong, Macau and Taiwan).

III. COMPANY NAME
The Shenzhen government has a name format for anyone who wants to setup a WFOE in China, the format is: Shenzhen + trade name + business scope+ limited. In China, only Chinese company names are officially used, while English names are for reference only. Any names are subject to the approval of relevant authority..

IV. SHAREHOLDER, DIRECTOR, MONITOR AND LEGAL REPRESENTATIIVE
A shareholder could be acted by legal person( foreign company) or natural person (individual), a director or a monitor could be acted by foreign person or Chinese person. A monitor is appointed to supervise the company’s operation and management. A legal Representative is a person in charge of corporate operation and management and development, responsible for all the legal affairs arising from the business running.

V. BUSINESS SCOPE
One of the most important issues is to define the business activities of the WFOE. Business scope is narrowly defined based on many factors, such as trade names, registered capital and business scope.  WFOE can only conduct business within its  approved business scope on the business license. Amending the business scope need further application and approval if the name reserve is not successful. For some sectors such as education, logistics, medicine and food industries, pre-approval license is needed before we enter into normal processes..

VI. REGISTERED AND PAID-UP CAPITALS
1. In China, the registered capital is different from varied situations and sectors. For the manufacturing enterprise, the registered capital of RMB 1 million or above is usually required. for the trading and wholesaling RMB500,000 or above; for retailing, as low as RMB300,000; for the service sectors, such as consultancy, technology, market research and development, the registered capital is around RMB100, 000 or above; for domestic companies, as low as RMB30,000.
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2.The capital to be subscribed in lump sum as contemplated in the Articles of Association shall be paid up within six months from the date of issue of Business License. The capital to be subscribed by installment as contemplated in the Articles of Association shall be paid up within three months from the date of issue of Business License, with the first installment not to be less than 20% of the amount of capital subscription.
The capital injection report issued by the CPA is required for the paid-up capitals subscription. The fee of paid-up capital injection will be reduced if the registered capital can be paid in one time.

VII. PREFERENTIAL POLICIES FOR WFOE in SHENZHEN
Most of the preferential policies have been abolished since January 1, 2008, but for some sectors preferential policies still remain there, such as hi-tech or environmental protection sectors. Contact ATAHK for more information at 86-755-82143272.

Contact Us
If you have further queries, don’t hesitate to contact ATAHK anytime, anywhere by simply visiting ATAHK’s website www.3737580.net , or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143348, or emailing to amyhuang@citilinkia.com.