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    Wholly Foreign Owned Enterprise (WFOE)

     WFOE (Wholly Foreign Owned Enterprise)

     

    1. THE CONCEPT OF WFOE

    WFOE stands for wholly foreign owned enterprise, which is a limited liability company wholly owned by either a foreign legal entity or a foreign natural person. The foreign investors may be foreign enterprises or individuals from Hong Kong, MacauTaiwan or overseas.

     

    2. COMPANY NAME

    In Guangzhou China, only Chinese company names are officially used, while English company names are for reference only. Not every name will be accepted by the ICAB (Company Registry). For some sectors such as education, logistics, medicine and food industries, a special pre-approved license is needed. It is important that you know the wording of a company name should conform to the registered capital and business activities. The words "international" or "investment" or "industrial" within a company name suggest that the registered capital should be more than RMB 10 million, while a "group'' or "holding" should be more than RMB 30 and 50 million respectively.(The detailed information depends on the local stipulation). Your company name must be distinguished from the other registered names. If the word “China” is within the company name, it is required to be pre-approved by ICAB at national level in Beijing.

     

    3. POSITIONS

    Shareholders, directors, monitor and legal representative should be considered and arranged before the business setup.

    1. A shareholder could be a legal person (foreign company) or a natural person (individual).

    2. A director could be acted by a foreign person or a Chinese person.

    3. A monitor should be appointed to supervise the company’s operation and management. A monitor could be acted by a foreign person or a Chinese person.

    4. A legal representative is a person in charge of corporate operation, management and development, responsible for all the legal affairs arising from the running of the business. The position could also be held by non-shareholder or non-director.

     

    4. BUSINESS SCOPE

    The WFOE can conduct business within its approved business activities described on the business license. We will help you for more business activities during the application. Amending the business scope requires further application and approval. Generally speaking, different business activities are confined according to different business sectors

     

    5. REGISTERED AND CAPITAL INJECTION

    In Guangzhou China, the registered capital could be as low as USD5,000. Different business sectors are subject to different requirements. In Guangzhou, the registered capital is equal to the paid-up capital. For the trading enterprise, the registered capital is usually required USD150,000 or above. For the manufacturing enterprise, the registered capital is usually required USD million or above. For the service sector, such as consultancy, technology, market research and development, the registered capital is usually required USD10, 000 or above. All of the registered capital can be injected in one time (within 3 months after the date of the issuance of the Company's business license) or be injected by many times within two years (In the first 3 months, 20% of the registered capital is mandatory). The terms of payment is determined by the volume of registered capital. If the registered capital is paid in one time, the fee of paid-up capital verification can be reduced.

     

    6. DOCUMENTS REQUIRED FOR THE TRADING ENTERPRISES

     

    1) Certificates provided by foreign investors:

    (a) For companies from Hong Kong, Taiwan and Macao, two notarized copies of corporate registration certificate (e.g. Hong Kong companys CI/BR/NC1 (AR1 for companies having been established for over one year)), and one photocopy (affixed with the company seal) of such notarized copy.; notarization should be conducted by a lawyer in Hong Kong, by a local court in Taiwan, and by the notary public office of Legal Affair Bureau in Macao.

    (b) For foreign companies, two copies of corporate registration certificate (containing the companys registration number, registered address, taxpayer ID, information on shareholders, information on directors, range of business (if applicable) and registered capital etc.) notarized by the local Chinese consulate or embassy, and one photocopy (affixed with the company seal) of such notarized copy.

    (c) For residents of Hong Kong, Macao and Taiwan, two notarized copies of ID card or passport, and two photocopies (signed by the holder) of such notarized copy.

    Note: for a country without local Chinese consulate or embassy, the above-mentioned copies can be notarized by a notary public office in the country, and then sent to be notarized by the Chinese consulate or embassy in an adjacent country.

     

    2) An original reference letter issued by the bank of all investors (addressed to competent authorities in Guangzhou and specifying the investors names, date of account opening, account number, balance and currency, account active and clean); two photocopies affixed with the company seal or signature.

     

    3) Copies in quadruplicate (signed or sealed by the client) of ID card or passport of the legal representative, managing director, manager and supervisor of the company to be established; four 1-inch color photos of the legal representative; phone number and address of the legal person, managing director, manager and supervisor.

     

    4) Two originals of filed lease of the company to be established; two copies of ID card or passport of the tenant affixed with the investors company seal or signature; two copies of ID card or business license of the landlord affixed with the landloards company seal or signature.

     

    5) Phone number, facsimile, address and postal code of each investor.

     

    6) Two copies (affixed with the company seal) of each of the annual audit reports over the past year or three years (depending on the project) of the investor; two copies (affixed with the company seal) of ID card or passport of the legal representative or president.

     

    7) Copy of qualification certificate and ID card of the foreign exchange verification expert of the company to be established (applicable to companies that need to apply for the right to import and export); the company may also send someone to receive training and pass examination before applying for the right to import and export.

     

    7. BUSINESS FOLLOW-UP

    We can provide a series of business follow-up services such as monthly bookkeeping and tax return, annual return services, internal auditing, financial planning and tax layout, China policy & market study. Other services include domain name registration, webpage design, website promotion, China trademark registration, Work Permit, Residence Permit, etc. in order to pave a smoother and wider way for your China business success.

     

    8. PROCESSING PERIOD FOR WFOE

    Around 50-80 working days to finish the processing after we get required documents ready.

     


    For details, Please contact us
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