Hangzhou business setup (WFOE) refers to register a wholly foreign-owned enterprises in China. WFOE, or WOFE, is the primary mean of investment in mainland China today. This kind of entity form provides complete control over its Chinese operations to the foreign investor. As a limited company, a WFOE can generate income in China in the local currency (RMB). It also has less restrictions (compared to the representative office, for instance) in terms of human resource management or office location selection.
Advantages of WFOE in China
The advantages of incorporation a WFOE, compared with other types of enterprises, include, but 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 their 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. For Manufacturing WFOE, no special requirements for Import / Export license for its own products;
6. Full control of human resources;
7. Greater efficiency in operations, management and future development.
Documents Required for WFOE Registration
1. Copies of incorporation documents of parent company if applicable (business license, certificate of incorporation, business registration certificate and/or any applicable document);
2. CPA-certified annual audit report of parent company if applicable (last year);
3. Original bank reference letter attesting of the parent company’s or individual investor good financial status within the last six months;
4. Information on business scope, estimated duration of proposed WFOE, as well as total investment and registered capital;
5. Detailed information, contact number & address of legal representative and/or individual investor;
6. Photos and copies of passport and current valid visa of legal representative;
7. Originals of lease agreement (minimum 12 months), and copy of title deed of registered office.
Registration Procedure
Checking up the documents and preparing the legal forms;
Checking and registering the company name;
Obtaining the approval certificate (from the relevant district’s office for Industry and Commerce);
Applying and obtaining the business license;
Applying for the enterprise code license;
Registering with the local bureau of statistics;
Registering with the local tax bureau;
Obtaining the bank account and foreign exchange certificates;
Opening the foreign exchange and RMB bank accounts.
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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