China potentional place Xiong’an , the new special economic zone in the heavily polluted province of Hebei to promote integration with the neighbouring cities of Beijing and Tianjin. The Xiong’an New Area will be of the same national significance as the Shenzhen Special Economic Zone, which helped kick-start China's economic reforms in 1980.
If you keep an eye on China encomy policy, you may have interested in investing in Xiong’an. There is a felixible business type you could simply start your business here. 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).
Advantages of Xiong’an WFOE
The advantages of establishing a WFOE include, but are not limited to:
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 out business rather than just function as a representative office and being able to issue invoices to customers in RMB and receive revenues in RMB;
3. Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
4. Protection of intellectual know-how and technology;
5. No requirement for Import / Export license for its own products;
6. Full control of human resources;
7. Greater efficiency in operations, management and future development;
8. Investor does not have to be established for more than 2 years while Representative Office's parent company is required to have been established for over 2 years.
Business Scope for Xiong’an WFOE
One of the most important issues in WFOE application is 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. Generally business scope includes investment consulting, international economic consulting, trade information consulting, marketing and promotion consulting, corporate management consulting, technology consulting, manufacturing, etc. With China's entry into WTO, more and more business is open to WFOE especially in Trading, Wholesale and Retail business.
Registered and Paid Up Capital of Xiong’an WFOE
Registered Capital: USD$140,000 is a decent investment capital for many types of WFOE. (with USD$ 140,000 investment it's easy to get approved). Initial Paid-up could be 20% of the registered capital, with the balance being remitted within 2 years. RMB 100,000 ~ RMB 500,000 (Approx. USD$15,000- 75,000) is the minimum investment capital to be approved for Consulting WFOE, Service WFOE, Hi-Tech WFOE registration.The minimum registered capital guides for various industries according to our practice in China.
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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