Taizhou company incorporation is a good choice for investors to enter into eastern coastal market in China. Taizhou is a city on the eastern coast of China's Zhejiang province. It is located 300 km south of Shanghai and 230 km southeast of Hangzhou. It is bordered by Ningbo to the north, Wenzhou to the south, and Shaoxing and Jinhua to the west. Taizhou is one of the birthplace of China's private economy in the early days of economic reforms in China. It is the cradle of the Chinese private economy.
Foreign invested enterprise (FIE) refers to any one of a number of legal structures under which a company can participate in the foreign economy. In China, any one of a number of legal entities can be considered FIEs including equity joint ventures (EJV), cooperative joint ventures (CJV), wholly-owned foreign enterprises (WFOE) and foreign-invested companies limited by shares (FCLS).
Types of FIE
There are three common forms of incorporation shown as follows:
1. Wholly Foreign-owned Enterprise (WFOE)
A limited liability company registered with foreign capital under Chinese Company Law. WFOE's are among the most popular corporate models for non-PRC investors due to their versatility and unique advantages.
2. Sino-Foreign Equity Joint Venture (EJV)
A limited liability company incorporated by a Chinese partner and a foreign company. The partners share profits, losses and risk in equal proportion to their respective contributions to the venture's registered capital.
3. Sino-Foreign Co-operative Joint Venture (CJV)
A joint venture between a Chinese and a foreign company within the territory of China. The Chinese company provides the labour and land while the foreign company brings in the necessary technology and capital.
Registered Capital for FIEs
Registered capital for FIEs in China is an important issue for foreign investors to know. When establishing a FIE in China, investors face a number of strategic considerations that can have long-term effects on their businesses including determining the right amount of registered capital to commit to the company.
In most cases, registered capital funds the FIE until it begins generating enough income to cover its expenses, which can often be a matter of years. China’s strict foreign exchange controls mean injecting additional capital to fund operational expenses can be challenging during the early stages of a business.
Business Scope
The scope of a foreign invested enterprise must be clearly defined and shall not exceed the scope of its business. The registration of Chinese foreign-funded companies need to be approved by related authorities concerned.
Office Location
The registered address of the company must be the office address of the business. It shall provide the lease agreement, the copy of the property certificate and the lease invoice. Tannet can provide you with a registered address in major cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Zhejiang, etc.
General Procedures for Establishing an FIE in Taizhou
(1) Pre-registration of FIE's name with SAIC;
(2) Project approval from NDRC environment impact assessment by relevant authority;
(3) Approval for establishment from MOFCOM additional approvals might be required for certain sectors;
(4) FIE registration and obtaining business license from SAIC;
(5) Apply for organization code certificate, obtain approval to make company seal, seek permission to open foreign exchange account and tax registration;
(6) Registration with other authorities such as statistics, customs, labour and social security.
Contact Us
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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