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Yiwu Company Formation (WFOE)

Updated:2017-9-28 18:27:13    Source:www.tannet-group.comViews:43

Yiwu company formation (WFOE) is one kind of Tannet’s business incorporation services. WFOE (wholly foreign owned enterprise) is a business entity formed in China entirely with foreign capital. It is totally under foreign control and does not have any formal Chinese ownership participation. For a foreign company to be able to issue receipts and export goods from China, it must be able to legally registered as a local company or a WFOE. A WFOE is set up as limited liability entity and represents separate legal persons and is taxed according to local legislation.

Advantages of WFOE in Yiwu
1. Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner;
2. Ability to formally carry on business rather than just a representative office function;
3. Issue invoices to their customers in RMB and receive RMB revenues. Convert RMB profits to US dollars for remittance to their parent company outside.
4. Cheap labor, which can lower your cost;
5. Not required to share profits with Chinese counterpart;
6. Greater efficiency in its operations, management and future development.

Application Documents for WFOE in Yiwu invested by company
1. A project proposal and feasibility study report (in print and under the company seal);
2. Original copies of the application paper and the resolution by the Chairman of the Board of the foreign investor (in printed form signed by members of the Board and with company chop);
3. Copies of the business licenses of certificates of incorporation of the foreign investor (usually with the permission chop from the government department.);
4. An original copy of leasing agreement with chop of the Housing Department;
5. Directors name list of board or management;
6. An original copy of the corporate ratification paper (2 copies in duplicate);
7. Original bank credibility letters for the foreign investors, stating 7-digits bank balances, issued within 6 months in both English and Chinese language;
8. A copy of the approval paper for corporate formation and other papers for company alterations (the original are required for check-up);
9. Notice of enterprise's name confirmation appraised by the Industry & Commerce Administrative Bureau;
10. Photos of the legal person of WFOE;
11. A copy of the stub of corporate certificate of approval.

Application Documents for WFOE in Yiwu invested by individual
1. Investors’ copy of passports (usually with the permission chop from the government department and China embassy.)
2. An original copy of leasing agreement with chop of the Housing Department.

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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