Shenzhen company registration guide (WFOE) is helpful for foreign investors to do business in Shenzhen. If you want to invest in Shenzhen China, you don't have to turn to the relevant government departments for so many certificates and formalities, but just turn to TANNET. At TANNET you not only get our tailor-made services for your need, but also for your satisfaction. TANNET’s services are business-orientated and value-orientated. TANNET—serving the world of BPO, ITO and KPO businesses sincerely and professionally.
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 34 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.
2.The capital to be subscribed in lump sum as contemplated in the Articles of Association could be paid up within 30 years from the date of issue of Business License.
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 TANNET for more information at 86-755-82143422.
VIII. TANNET SERVICE PROCEDURE
Step1: let clients fill out the application form (sign the agreement);
Step2: Confirm the company name, business scope, registered capital and company shares;
Step3: Check the required documents for the clients;
Step4: Pay the services;
Step5: Prepare for the statutory documents for the investors to sign personally;
Step6: Forward documents to related government departments;
Step7: Keep clients informed of processing;
Step8: Finish processing in 20-30 working days;
Step9: Collect the documents and items and settle the balance if any.
IX. GORVERNMENT PROCESSING PROCEDURE
Step 1: Checking the company name with local Company Registry;
Step 2: Achieving an approval from the Fire and Environment Bureau for manufacturing sector;
Step 3: Pre-approval for some special sectors;
Step 4: Go to the Science, Industry, Trade and Information Technology Commission （SITIC）for Approval Record Receipt for Foreign Invested Enterprise Registration;
Step 5: Apply for the business license from MSA;
Step 6: Apply for stamps from the Public Security Bureau;
Step 7: Open the saving account with the bank (current account could be opened later);
Step8: Apply for the Import & Export registration license from local Customs (if needed);
Note: Step 4 can be proceeded before or after the Business License is applied.
X. DOCUMENTS REQUIRED FOR THE TRADING ENTERPRISES
Part one, documents needed to be prepared from abroad as follows
1. Copy of the business license or certificate of incorporation of parent company;
2. The original and copy of identification documents (ID card, passport) of legal representative, and eight color photos;
3. Lawyer’s legalization or notarization which should be endorsed by local China Embassy or Consulate
Part two, documents needed to be prepared from Shenzhen as follows
1. One proposed name (in Chinese), and provide two or more alternative names in case the first name is not available.
2. Detailed information about the business scope and intended registered capital;
3. Detailed information of legal representative, shareholder, director, monitor, manager;
4. The lease of commercial office between lesser and lessee needed to be endorsed by the Housing Management Authority. The lessee should be acted by shareholders, directors, legal representative, monitors or manager. The area required is for commercial use only with more than one year’s rent.
XI. DOCUMENTS REQUIRED FOR THE MANUFACTURING ENTERPRISES
Item 1 - 9 the same as above
10. Manufacturing address: house property certificate or the lease of industrial workshop (two original copies of lease with signature and endorsed by Housing Management Authority. The area is required no less than 200㎡ and for manufacturing use only with more than one year’s rent.)
11. Project reports are necessary for the approval by the relevant government department, such as, business service, environmental and fire departments. The safety standard of manufacturing area should reach the required standard set out by the Fire Department and Environmental Protection Department.
XII. DOCUMENTS REQUIRED FOR THE FOREIGN INDIVIDUAL ENTERPRISES
1. Original document & copy of identification documents (ID card, passport) of Chinese company's legal representative, directors, monitors and managers;
2. Local lawyer's legalization or notarization of the investor’s passport endorsed by the Chinese embassy or consulate in the investor’s country.
XIII. TANNET SERVICES
TANNET provides one-stop and tailor-made services for foreign companies which would like to set up WFOE in Shenzhen China.
TANNET package services include: 1 copy of original Approval Record Receipt for Foreign Invested Enterprise; 1 copy of original Articles of Association signed & sealed by investors; Both original and duplicate copy of business license; 3 chops for different use; Bank account documents; Customs declaration registration certification.
XIV. FOLLOW-UP SERVICES
TANNET can provide a series of follow-up services to customers, such as bank account opening, CPA report, bookkeeping, auditing, monthly tax return and tax layout, annual return services, financial planning and China market study, Other services include domain name registration, webpage design, website promotion, China trademark registration, Work Permit, Residence Permit, etc.
XV. PROCESSING TIME NEEDED
For manufacturing enterprise: it takes 50-60 working days to finish the processing before we get required documents ready, especially the approval papers from the fire service department & human environment committee.
For the trading and service enterprise: it takes 20-30 working days to finish the processing before we get required documents ready.
XVI. TANNET ADVANTAGES
1. TANNET has established a global service system with 38 branches and 3000 cooperators worldwide, as well as in excess of 60,000 reliant clients globally. You can find one TANNET always beside you.
2. TANNET is staffed with a strong professional team of lawyers, accountants, engineers, designers and consultants providing tailor-made and all-in-one service.
3. There is a B2B business platform available for the international buyers and sellers of SMEs, www.ono-bbb.com.
4. TANNET is the best partner with international banks, financial institutes. TANNET also provide PIPO service.
5. TANNET is in conformity of the standard of ISO9001/2008. That means the service quality is guaranteed.
XVII. IMPORTANT HINTS
1. Because of language difference, all the documents submitted to the Chinese government should be translated into Chinese and endorsed by the appointed translation agency.
2. TANNET is responsible to inform the clients for the collection of the company kit at the designated office. If the clients fail to collect the company kit within the mandatory three month period without reasonable excuse, the client will be regarded as forfeiting the right to the registered company; TANNET can dispose the company as it wishes.
3. Make sure to get the formal invoice from the lesser after office leasing is done.
4. The follow-up business services are not included in the service package, and are subject to further charge according to the clients’ requirements.
CONTACT US
If you have further inquiries, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Shenzhen hotline at 86-755-82143422 or Hong Kong hotline at 852-27826888, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu , Shenzhen, China.
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