Zhongshan company registration is becoming more and more popular among investors from both home and abroad. Zhongshan, together with Dongguan, Nanhai and Shunde, are dubbed as Four Little Tigers in Guangdong. The proximity of Zhongshan to Hong Kong and Macau is an advantage to its economic development, especially in manufacturing.
Starting September 1, 2015, investors seeking to set up a company in Zhongshan city will be able to complete the registration procedures and get the business license within one week. The business registration procedure generally takes more than one month in other regions of China. WFOE stands for wholly foreign owned enterprise, which is a limited liability company wholly owned by either a foreign legal entity or a foreign natural person. It is the vehicle of choice for most people and companies doing business in China. It is less complex than a joint venture (JV) and allows you to concentrate on what your employees are up to as opposed to your partners.
Zhongshan encourages foreign investment into its high-end manufacturing industry, modern service, infrastructures, modern agriculture and five strategic emerging industries including new materials, new energy, environmental protection, pharmaceutical products and electronic information industries. The local government offers certain preferential policies and tax incentives to companies that engage in the above-mentioned industries on a case-by-case basis.
Business Scope
Business scope needs to be defined and the WFOE can only conduct business within its approved business scope, which ultimately appears on the business license. Any amendments to the business scope require further application and approval. Inevitably, there is a negotiation with the approval authorities to approve as broad a business scope as is permitted.
Registered Capital
As stipulated in China’s Corporate Law, minimum registered capital for limited liability corporations is based on the nature of the industry. The minimum registered capital for various industries according to current laws is given below:
Consultancy WFOE: RMB 100,000;
Trading WFOE / FICE: RMB 500,000;
Manufacturing WFOE: RMB 500,000;
Catering WFOE: RMB 500,000.
Validity Period
In China, terms of 15 to 30 years are typical for a 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. With special approval from the State Council, the term may be even longer than 50 years.
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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