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Shenzhen Company Incorporation Requirements (WFOE)

Updated:2018-4-25 16:59:02    Source:www.tannet-group.comViews:165

Shenzhen company incorporation also refers to Shenzhen company registration, Shenzhen corporate formation, Shenzhen business setup. The Wholly Foreign funded Enterprise (WFOE) is a Limited liability company wholly owned by the foreign investor(s). In Shenzhen, WFOE were originally conceived for encouraged manufacturing activities that were either export orientated or introduced advanced technology. The following are some of the requirements on registering a WFOE in Shenzhen, China.

I. Choosing 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; second word: activity; third word: location/name of city; fourth word - company structure.

II. Finding Office Address
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, the office of WFOE can't be in a residence building nor residence and commerce (R&C) combined building.

Virtual address is not allowed to be registered a WFOE there although it's widely existing for local companies. Anyway, a normal office building in China will be OK for register a WFOE.

In mainland China, one office room could only register one business. An already taken office can't been registered again. Registered address and operation location can't be different, although it's widely existing in China that a company registered in one address operate in another.

III. Registered and Paid up Capital
Registered capital is the amount that it's required to run the business until it can break even.The minimum registered capital guides for various industries according to our practice in China are given below:

Consulting WFOE                    RMB 100,000 - RMB 500,000
Service WFOE                         RMB 100,000 - RMB 500,000
Hi-Tech WFOE R                      RMB 100,000 - RMB 500,000
Trading WFOE / FICE/ Retail   RMB 500,000 - RMB 1 million
Food & Beverage WFOE         RMB 500,000 - RMB 1 million
Manufacturing WFOE              RMB 1 million or USD 140,000

IV. Determining Business Scope
In China, Business scope of a business is a "one sentence description" covering all of the present and future activities of the WFOE. The WFOE can only conduct business within its approved business scope, which ultimately appears on the business licence. Any amendments to the business scope require further application and approval.

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