China Business Setup (FICE)/China Company Registration
Hotline: 86-755-82143422, Email:tannet-solution@hotmail.com
Foreign-invested commercial enterprise, commonly known as FICE, is one of the ideal approaches for foreign investors to enter China’s Mainland market. It is a relatively different types of legal structures. The FICE structure enabled foreign investors to establish an entity that would provide both import and export licenses with minimal capitalization for the first time.
Business Scope of FICE
A FICE refers to an enterprise with foreign investment that engages in the following business activities:
(1) Retailing: i.e. selling goods from fixed venues or via television, telephone, mail order, internet, and vending machines, and related services.
(2) Wholesaling: i.e. selling goods to retailers and industrial, commercial or other customers and other wholesalers, and related services.
(3) Franchising: i.e. authorizing the use of trademarks, trade names and operation models for remuneration or franchise fees through conclusion of contracts.
(4) Commission agency activities: i.e. acting as sales agent, broker or auctioneer for goods, or as wholesaler charging fees and conducting sales for others’ goods and related services on a contractual basis.
Basic Requirements on FICE Setup
The foreign investor should meet the following criteria:
(1) Has a good reputation;
(2) Has not committed any acts in violation of Chinese laws, administrative rules or regulations;
(3) Can meet the required ratio between registered capital and total investment.
Business duration is limited to 30 years for foreign trading companies set up in the developed coastal areas. Companies established in West China are allowed business duration of 40 years. Foreign companies shall “possess a sound reputation and comply with Chinese law.”
Advantages of FICE
Establishing a FICE is one of the best ways for a foreign company to distribute its products in China. The pros of a China FICE are listed below.
(1) Can sell in RMB to local Chinese customers and issue fapiaos;
(2) Ability to benefit from VAT rebates if exports are done through the FICE;
(3) Can take control of the supply chain and expand the range of suppliers in China by purchasing in RMB;
(4) Can establish and operate branch offices anywhere within China;
(5) Can be 100 percent owned by a foreign entity;
(6) Can hire directly;
(7) Has no annual turnover or minimum asset requirements;
(8) FICE can also carry out a wide range of activities, including wholesale, retail and franchising trade activities in China.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at 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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