Setting up a WFOE

China tax system stipulates strictly that whatever your corporate type is and business activities do, even if you do not have any business at the beginning, you must register taxpayer within 30 days after WFOE license be approved, and report tax situation such as income, expenses, VAT, profits ( known as corporate income tax ), personal tax ( employee ) etc.

Whole procedure from getting business license to opening corporate bank account, our standard pricing depends on your industry and business activities, you may contact our teams and just briefly explain what your WFOE does in China and details business scope, at the same time SMEsChina will send you a standard quotation and proposal.

Your decision, as a rule of thumb, whole process can be completed through online guidance, but there is no denying that come here in person is easier and quicker. If you do not want to come here in person, also can complete whole process for WFOE establishment.

Sure, all Chinese business entities ( WFOE, WOFE, LLC etc.) may hire local staff and foreign employees, and as a local employer, WFOE can hire foreign staff to obtain work visa and residence permit.

Except for above basic guidance and process, SMEsChina assists you obtaining import and export licenses and permits from the Customs and Inspection and Quarantine Bureau, this process needs extra procedure with another 5 working days.

There are many special industries need to register permits for your local company, whatever your company type is ( WFOE, Joint Venture, Limited company or other types ), special permits and licenses issued by different supervision department offices and they are compulsive requirements you have to get approval.

Such as: food and beverage licenses, liquor permit, dangerous chemicals, medical apparatus and instruments, dairy products, raw meat trade, etc.

If you do not know your list of products if includes special supervision, you may contact our WFOE experts to obtain more advice.

2 types you can select with Chinese registered companies.

First is small scale taxpayer can issue general invoice for your business activities ( trade or services, or engineering ).
Second is general taxpayer ( known as VAT ), can apply for general special invoice to Chinese customers.

Which is better, depend on your business and what kind of invoice your local clients need. And all of them need to report monthly tax records and quarterly profits, and attend annual government verification and inspection.

All company structure have to appoint below 3 key positions.

1st. Shareholder(s), can be the foreign individual(s) and oversea enterprise(s) registered in other countries.
2nd. Legal representative ( executive director ) can be non residents or local Chinese.
3rd. Supervisor ( secretarial position ), also can be non residents or local Chinese.

As a WFOE, you can inject the capital within 30years and amount must be injected from foreign shareholder(s)’ account(s), and through foreign exchange process transfer to RMB basic account to as daily operations, this process needs 2weeks to complete, our accountants will assist you operating it.

According to Chinese foreign enterprises laws and regulations, China government stipulate that foreign shareholder(s) can inject the registered capital within 30 years.

Whatever your company type is, WFOE, Joint Venture or partnership, you can use an oversea existed company as the shareholder, but you have to get authenticated and notarized documents for your foreign certificate of registration from China Embassy in your home country’s branch office. And courier these legally documents to SMEsChina submitting China industrial and commercial bureau to verify.

You can appoint local firm, secretary to collect and submit changing application to different industrial department offices, and the process will affect your daily operations like issuing invoice, maintaining social insurance and work permits for employees, and bank account ( example: change company name must apply for new corporate bank permit ), but you still can change any records and information for your corporate structure anytime.

Certainly, some industries need longer procedure to operate the changing application, such as international trading business, you also need to change the related information to obtain new business licenses, certification of registration of enterprise and other special permits.

All companies and partnerships registered in mainland China, must report monthly VAT records and quarterly corporate income tax to local tax authorities and collect documents to attend annual audit, government licenses inspection and information verification within March each year. If fail to deliver do these stipulations, key positions and company tax ID, register number will be listed into black name and be fined.

Yes, you have to register taxpayer within 30 days and report month accounts to local tax bureau, same time to create a corporate bank account paying taxes as a taxpayer. And prepare information and documents to public inspection for annual financial settlement and audit.

Any person can be the appointed as the legal representative under the LLP structure and other company types, if you are the director, shareholder, or employee, its your decision, legal representative known as executive director and appointed by shareholder(s). But legal representative can not be the supervisor under same group.

1. Contact our online consultants and obtain business advice.
2. Get a list for preparing required documents you have to collect in oversea.
3. Get a application forms of registering company to fill in.
4. Download and sign legal files and official forms.
5. Courier these documents to SMEsChina office from your country.
6. Obtain business licence, company seals, certificate of registration.
7. Appoint SMEsChina to open a local corporation account.
8. Tax registration to obtain VAT invoice, and register employee system.
9. If need, follow on the step for import and export permits.
10. None, exactly, That’s it. Whole Process done.