Guidance of China WFOE / WOFE
Keywords of Chinese WFOE (WOFE)
A WFOE ( wholly foreign owned enterprise ) or WOFE ( wholly owned foreign enterprise ), means the Chinese company owned by foreign shareholder(s), and oversea shareholder(s) can be an existed corporation(s) or individual(s).
- Shares: wholly owned by foreign shareholder(s)
- Corporate Structure: flexible
- Market Access: openness
- Industries: trade and service
- Legal Basis: China Foreign Investment Laws
- Minimum Capital: 20,000 USD
- Company Types: LLC, LLP
- Procedure: 20 working days
- Bank Account: 5 workdays
- Required Documents: certificated documents
- Published by: SMEsChina.com
How to Setting up a WFOE/WOFE Quickly?
How to set up a Chinese WFOE in mainland, here this guidance offers an overview of the legislation that as a foreign private company how to prepare these forms of required information in advance and usually need to submit the Chinese Public Business Registration Bureau.
If you want to set up a wholly foreign owned enterprise in mainland China, you have to learn the requirements and procedures of registering a WFOE in mainland China. Before learning this guidance, SMEsChina suggests you to read 3 guidances first, How to Set up a Management Company, Setting up Consultancy Business, and How to Open a Trading Company, to decide your Chinese business activities belong to service industry or trade industry.
You can start up and run your Chinese planning and expand businesses as a WFOE. The meaning of private limited company is that legally type of company incorporation, independent financial system and after reporting and paying taxes you can keep the profits.
With the innovation of new 5-in-1 business license and the reformation of registered capital subscription system, the procedure of establishing a WFOE has become easier and quicker to obtain approval from local government offices. Whatever your China WFOE does, we have confidently and expertly experience to solve different industrial cases with our fast response services.
What Information of Registration Need to Confirm?
If you are intending to set up a WFOE as private limited company, you have to entrust a local legal firm to help you submitting the documents of incorporation to government departments, and inform local governments the following information:
1. an available limited company name in Chinese and English.
2. more than one shareholder at least, and the list of shareholders.
3. a legally registered address of China company.
4. details shares of the company
5. standard classification for your industry, business scope and economic activities.
6. how much the registered capital you want register
7. the legal representative and supervisor appointed by shareholder(s)
8. local company secretary
9. local financial person for future’s accounting and bookkeeping
10. list of significant control person
Requirements and Procedure of Registration of a WFOE
1. Choose a available name for your Chinese company
This is a necessary procedure and first step for China company incorporation, here you need providing Chinese name approval to government office first, and then you can apply for English name. Your Chinese company name can not be the same as another existed Chinese company, the end of Chinese and English company must include Limited or Ltd, or Group. And also, your company name can not contain sensitive words or characters. Learn more: Naming Rules and Requirements
2. Legal registered office address
In mainland China, there are 2 kinds of office address you can use it as your official registered address and all of them can be accepted from local government departments once reporting the licenses registration, one is virtual registered address and another is physical address ( rent real office ), and you can use these address to running and managing your Chinese corporation. Learn more: Reasons of Using a Virtual Address
3. Confirmation of corporate structure and organization
Appoint a local legal firm as your company secretary, and shareholders appoint the legal representative and supervisor, members of the board of directors. After all documents have been collected, we will report to government for your private limited company. Learn more: Corporate Structure of Company
4. Memorandum and articles of association
Legal statements need initial owners to sign and all shareholders agree all Chinese legal documents and files, and reporting the forms of corporate structure and organization. and once you want to change company registration information in the future, need to update the memorandum and articles of association.
5. Register your own Chinese company
If you have done everything from our online consultants, you can register a private limited company right now, you can send all information and deliver the documents to our experts, do not forget to courier needed original forms to us. Once you have above confirmation of register information, you can set up and register your own private limited Company in Mainland China.
6. Open a bank account
After done the above 5 steps, need China company to open a local bank account, and apply for internet banking and bank permits.
7. Tax registration for your WFOE
You need to confirm which type of tax degree you want to apply from tax government, normally there are 2 types of taxpayers in mainland China, one is small scale taxpayer ( small invoice ) and another is general taxpayer ( VAT invoice ), you must choose one at the beginning once you apply for the tax registration. and future when you running your Chinese private company, you must report the following finance to tax government:
1.Monthly VAT declaration
2.Monthly personal income tax reporting
3.Monthly additional tax declaration
4.Monthly stamp tax declaration
5.Quarterly corporate income tax reporting
6.Yearly annual joint inspection
7.Yearly tax and finance settlement reporting
8.Yearly annual joint audit report
OK, Congratulations, everything have done right now, you have own Chinese private company and its legal and you can running it anytime according to your needs.
For non-residents, business formation is the same as local citizens, do not worry about your nationality please, in China, no restrictions on foreign nationals incorporating a WFOE, LLC, JV, or LLP, and being a shareholder (owner), executive director (legal representative), and supervisor (secretary). You do not need to visit China personally, the whole procedure (registration of license, bank accounts, tax compliance and annual inspection) will be completed by our experienced legal teams.
Our standard service packages of China company formation include government filling costs and application of certificate of incorporation as well as preparation of required documents. Ideal for our customers who wish to seek legal assistance with future’s corporate maintenances and daily operations. If you have everything to start up a private business in China, you may communicate with our consultants and lawyers immediately.
And, if you also need to hire employees, pay social insurance, inject registered capital, trademark registration, import and export licenses, apply for foreign employee work visa and residence permit, you may contact our online experts.
Have Decided to Set up a WFOE in China?
Here SMEsChina provides some useful information for your China WFOE/WOFE Registration, after you learning these guidance, you can get better understanding. If you have everything to start up a WFOE in China, you can get in touch with our teams, email: [email protected]
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