The Most Popular WFOE Types and Industries
China as a huge market, is presenting oversea enterprises, foreign brands and entrepreneurs in all industrial sectors with its growing middle class. Foreign corporations are wanting doing businesses here legally and obtaining the correct corporate register licenses and permits to do relevant business activities and service to Chinese market, but all of them need to face the first challenge, apply for registering business entity.
SMEsChina teams, combined by lawyers, corporate consultants, CPA, industrial experts and global partners, have over 15 years of experience guiding business setting up as well as an extensive and great relationship with different register offices and supervision departments meaning SMEsChina obtain approval on certificate of business registration faster than other competitors.
Top 1. Consulting and Service WFOE
20 Working days registration time completed by SMEsChina once you have prepared all required documents and legal files.
Chinese consulting and service industries can be approved to register as a WFOE, as local registered service and consultancy provider, corporation can receive incomes from domestic or oversea customers ( individuals, companies, organizations ). It is different with trading businesses needing to obtain import and export licenses and permits.
Most Popular Industries:
Enterprise management consulting, sports development and consulting, estate consulting, education technology consulting, business information consultation, talents consulting, market planing consulting, conference consulting, etc.
Top 2. Trading WFOE
Completed wittin 20 working days to obtain business license and another 10 workdays to register import and export licenses and permits.
Trading WFOE is a legal business entity licensed to do domestic trade transactions or import and export activities to operate international businesses. Companies can choose to sale products by offline channels and online platforms ( b2b, b2c ), most of trading industries do not need special permits, can operate transactions directly.
China WFOE Registration
Open a WFOE in mainland China at standard costs with our professional teams.
Before you going ahead to establish a Chinese business entity as WFOE approved by local market and supervision departments as well as industrial and commercial administration bureau, you should make sure that your corporate structure of shareholder(s) requires the registration of a WFOE, you can find out from this page on this topic.
So you have to understand what is a WFOE ( wholly foreign owned enterprise ), or a WFOE ( wholly foreign owned enterprise ), meaning all shares owned by foreign existed corporation(s) or non residents.
If your Chinese enterprises does need to register a WFOE as the corporate type, SMEsChina will assist you completing whole procedure of establishment, Chinese WFOE or WOFE ( wholly owned foreign enterprise ), or FICE ( foreign invested commercial enterprise ) then registering it has never been easier than previous traditional and difficult process with multiple interviews.
Now, build a China WFOE has turned into a simply and comfortably experience, even you do not need visiting China personally, also can complete whole process from business setting up, bank account and qualification of corporate taxpayer. If your business license be failed to deliver, you can reject paying off the service fees. SMEsChina 1 to 1 service system guarantees that all online guidance and advice will be processed seamlessly.
Read more: 20 Workdays Setting up a WFOE in China
What SMEsChina does:
Our services in areas of license registration, opening bank account, tax registration, issuing VAT invoices and company seals, SMEsChina has great confidence to operate your consulting and service WFOE registration. When you decide to register a WFOE, also we can provide a virtual registered office as your commercial address to obtain licensing approval.
All Chinese enterprises registered different market and supervision department offices are required to report their yearly audit, financial settlement and license inspection, in addition, all companies need to report monthly VAT records and quarterly profits to tax offices.
For those unfamiliar with Chinese regulations and rules, SMEsChina can assist you open trading WFOE smoothly if you have decided starting business in mainland China. Our services include:
1. Company formation
2. WFOE License Approval
3. Apply for Corporate Chops
4. Obatin VAT qualification
5. Open a local bank account
6. Register foreign exchange
7. Licensing foreign trade certificate
8. Inspection and quarentine permit
9. Electronic port cards
Also we can provide:
1. Residence permits application
2. Accounting and tax compliance
3. Naming services with Chinese
4. HR and Payroll services
5. Virtual registered address services
Above information of top 2 Chinese wofe categories clooected by SMEsChina teams, if you have any WFOE / WFOE questions, you may contact our consultants and get more guidance.
FAQs of China WFOEs
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.