Registration of Wholly Foreign Owned Company in China

Registration of wholly foreign owned company in China is quite popular among foreign investors doing business there. Wholly Foreign Owned Enterprise, abbreviated as “WFOE” or “ WOFE”, has known as the most common and acceptable company structure for significant business industries in China. Tannet has been offering company formation services in China's main cities like Beijing, Shanghai, Guangzhou, Shenzhen, Dongguan, Xiamen, Yiwu, Chengdu and Hong Kong for more than decades of years. The following is a guide to WFOE registration in China.

Why Choose WFOE?
As the most common and acceptable limited liability company structure for significant business in China, the WFOE boats quite a lot advantages, including but not limited to:
1. Independent management without Chinese participation;
2. Remit China company profit to parent company outside of China legally and promptly;
3. Protect intellectual know-how and technology;
4. Full control of human resources;
5. Have greater efficiency in operations, management, and future development.

Types of WFOE
Generally speaking, there are mainly three different types that you can choose, namely,
(1) Manufacturing WFOE, which allows you to set up a manufacturing facility in mainland China.
(2) Consulting WFOE, which allows you to provide consulting services.
(3) Trading WFOE, which gives you both import and export licenses and you can also trade locally.

Requirement on WFOE
1. Company Member
According to Company Law, all WFOEs should have at least one supervisor who oversees the performance of company duties by its directors as well as top management personnel. To avert any conflict of interest, all directors and the senior management personnel are not allowed to concomitantly act as supervisors. A relatively small company with a few shareholders can have one or two supervisors. However, bigger companies are required to have a board of supervisors of not less than three members.

2. Registered capital
Registered capital refers to the amount of capital that would be sufficient to support a WFOE’s activities for a minimum period of one year after establishment. The WFOE’s registered capital shouldn’t be too little, which would lead to rejection of the enterprise application and risk insolvency. It shouldn’t also be too much, leading to idle funds and missed opportunities.

3. Registered address
As the company name contains the city of registration, careful consideration should be made before engaging an estate agent or landlord. In some cases, the city name can affect operations, as certain city names carry prestige and credibility that may impact sales, business development, and governmental relations.

Process for WFOE Registration
(1) Name registration with State Administration of Industry and Commerce (SAIC);
(2) Apply to open a WFOE at the local Administration for Industry and Commerce;
(3) Apply for business license;
(4) Apply for the Organization Code Certificate from the Technical Supervision Bureau;
(5) Assist in registering with the state and local tax bureau;
(6) Assist in the creation of your Chinese company seal;
(7) Register with local statistics bureau;
(8) Help you to open a Chinese corporate bank account (foreign currency and CNY);
(9) Apply for authorization to print or purchase financial invoices (fapiao);
(10) Purchase uniform invoices;
(11) Register with the local career service center (for staff hiring);
(12) Register with Social Welfare Insurance Center.

Information Required
Gathering the documentary evidence needed to apply for a WFOE is time-consuming. Tannet will guide you through this every step of the way. We will require the following documents from you in order to open a WFOE, including but not limited to:
(1) Company director/s passport copies;
(2) Company office lease rental contract;
(3) Business feasibility report;
(4) Chinese name of company;
(5) Business scope;
(6) Copies of overseas company registration documents (required if a company is the foreign investor).

Tannet has a team of fluent English-speaking consultants and financial advisors with years of experience under their belt. Our experienced consultants are glad to help you to start China WFOE with Hassle-Free package including China business bank account opening, outsourced accounting & bookkeeping, post-corporate management services, company secretary, barcodes application and intellectual property protection.

Contact Us
If you have further queries, don’t hesitate to contact Tannet 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 86-755-82143181 or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen South Rd, Luohu, Shenzhen, China.

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