Yiwu company incorporation (WFOE) refers to register a WFOE in Yiwu. The registration of a Wholly Foreign Owned Enterprise (hereinafter referred to as WFOE) is the first and obvious choice for foreigners looking to do business in China. The unique feature of a WFOE is that the entity is 100% owned and capitalized by foreign investors and operating without a local partner. This maintains greater control over your businesses operations, targets and profits of the company, allowing the mother company to concentrate on its own operations. All in all, WFOE is the favorable option for an overseas company that wants to permanently incorporate into mainland China.
Introduction to the WFOE
Commonly pronounced "Woof-y," the 'Wholly Foreign Owned Enterprise' which can also be abbreviated as WOFE, is a totally foreign owned limited company based in China.The foreign investors are limited to the investment that they put into the company when setting it up.
Unlike other options open to foreigners, such as a representative office (which is more like a China branch office), the WOFE can operate like a normal company, making profit and invoicing customers. Importantly, the company is able to operate using Chinese Yuan (RMB), meaning that any invoices and costs could be tax-deductible.
The original purpose of a WOFE for China was to encourage more overseas companies in specialist industries and technologies to enrich the workforce and economy by starting a business in China.
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Who may prefer to open a WFOE in China
Foreign companies who want a presence in China, but want complete autonomy;
Those who don't have, or want to enter into, a joint venture with a local company;
Companies who want to do business in China and be on the same level as Chinese companies;
Organizations who need to place a number of foreign nationals in positions in China;
Foreign manufacturers who want to produce products in China and export them;
Trading companies;
Consultancy/ Service/ Management/ IT/ companies.
Procedures for WFOE Registration in Yiwu
1. Find an actual office address;
2. Name approval (document with client’s signature is required);
3. Recordal of house leasing (the legal representative and the landlord should be present);
4. On-the-spot inspection (National security authority will visit to investigate, where the shareholder and legal representative should be present);
5. Apply for business license at the Industry and Commerce Bureau;
6. Recordal at the Bureau of Commerce;
7. Open a bank account (original passport of the shareholder is required and the legal representative should be present);
8. Apply for the work visa.
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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