Shenzhen WFOE company set up
Hotline: 86-755-82143348, Email: amyhuang@citilinkia.com
The Wholly Foreign Owned Enterprise (WFOE or WOFE) is a Limited liability company wholly owned by the foreign investor(s). In China, WFOEs are originally conceived for encouraged manufacturing activities that are either export orientated or introduced advanced technology.
Articles of Association
Articles of Association are Company Rules in China and they will mention exactly how the WFOE can operate, the official version of Articles of Association must be in Chinese. Check the full English version that WFOE.
Business Scope
According to WFOE regulations, "Foreign investors are permitted to setting up a 100% foreign owned enterprise in industries that are conducive to the development of China’s economic benefits, and not prohibited or restricted by China government.
Registered and Paid up Capital
Registered Capital: USD$140,000 is a good idea for all kinds of WFOE, with USD$ 140,000 investment it's easy to get approved. Initial Paid-up would be 20% of the registered capital, the balance should be remitted within 2 years.
Office address of WFOE [Very important]
Before submit the application forms of forming a WFOE in China, the foreign investor must rent a plant(manufacturing WFOE) or an office in advance(ridiculous? ), the office of WFOE can't be in a residence building nor residence and commerce (R&C) combined building.
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Choosing WFOE Company Name
Choosing the business name The official company name of a WFOE in China should be in Chinese. The Chinese name should be formatted as: first word -company name/product(For instance: MCK; second word: activity (For instance: business consulting); third word: location/name of city (For instance: Shanghai, Beijing); fourth word - company structure.
Business License
Business license [WFOE business license: sample]is the key offical document of the WFOE (like Certificate of Incorporation in Other countries).
General Tax Information
Since Jan. 1, 2008, China's new corporate income tax [-Corporate Income Tax Law-] (193 KB) rates begins with 25% although some industries still enjoy a lower rate which is15%, the rate depends on the places where the company is registered and the industry that a company engaged.
Annual Audit Report
Any limited companies in China should summit annual audit reports to the relevant authorities. The audit reports are including: balance sheets and income statements for their annual Chinese audit.
Profit Repatriation
China Government allows Foreign Invested Enterprises remit their profits out of the country and such remittances do not require the prior approval of the State Administration of Foreign Exchange (SAFE). Dividends cannot be distributed and repatriated to oversea if the losses of previous years have not been covered while dividends not distributed in previous years may be distributed together with those of the current year.
Terms and Termination
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.
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.