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FTZ INDUSTRY FIELDS
Commerce and Trade Service Industry
Professional Service Industry
Cultural Service Industry
Social Service Industry
Export Trading Industry
To start your Wholly Foreign Owned Enterprise (WFOE) registration
We have created a very simple procedure for our clients to get their Wholly Foreign Owned Enterprise Registration started in China.
All you need to do is to deliver the documents to us and we sort out the rest.
We always recommend setting up a holding company in Hong Kong. You can find More info about setting up a Hong Kong Company here.
Corporation China is a government licensed registration agency that provides business registration services. We offer practical solutions for corporate formation with our extensive knowledge and background, all while guaranteeing results for our clients.
It is not necessary for you to be in China to get the process started.
The procedure to set up a Wholly Foreign Owned Enterprise is very similar regardless which WFOE you want to establish. You can use a Hong Kong Company (recommended), set up as an Individual or your existing Overseas Company and then apply a specific license depending on your business scope.
As an example, you need a Food License to establish a Food & Beverage Company and to establish a Trading WFOE you need a Trading (Import & Export) license. Therefore, the documents required to establish each WFOE may vary slightly.
Below there are more details what is needed to start the set up process for a Wholly Foreign Owned Enterprise. You may contact us for more information.
SETTING UP AS AN INDIVIDUAL
China Consulting Company Registration
A scan of your passport
A Personal Bank Reference Letter, only stating no bad record.
Choose a name for the your China WFOE
Choose a location for the company in China
SETTING UP AS A HONG KONG COMPANY
China Consulting Company Registration
Notarized copy of Passport of Director and Company Registration Certificate
Hong Kong Company Registration Certificate
Hong Kong Company Bank Reference Letter
The Hong Kong Company will then be the Holding Company for the WFOE
We can set up a Hong Kong Company in about 5 days More info
SETTING UP AS AN OVERSEAS COMPANY
China Consulting Company Registration
A Passport Scan of the Director(s)
A Certificate of Company incorporation
A Company Bank Reference Letter – stating no bad record
All Documents need to be notarized by the Chinese Embassy.
This way is good for a Representative Office, but a Hong Kong Holding company is more suitable WFOE
How much money do I need to set up?
Basically the starting fees and Government License fees, Let us know what you intend setting up and we can send you a detailed proposal. E-mail us at: email@example.com
How Fast will the set up take?
Most companies in China quote 3-9 months, BUT Corporation China can normally set it up in under 6 weeks (and we know what the next question will be)
Why can Corporation China set up the Company so fast?
Its a Chinese word called ” Guanxi.” we have been doing this for a long time and know the law backwards.
How much is the Registered Capital?
NO REGISTERED CAPITAL NEEDED
With Corporation China (and only with us) we can arrange a Registered Capital that does not need to be paid up , this means you can choose any Registered Capital , but you never have to inject it , unless you want to.
What are the advantages of Shanghai Free Trade Zone?
- Mainly for import and export companies, zero customs, tariff reduction and circulation taxes are lower , particularly lower transportation costs
- The registration will complete in 1 week, except for import and export license takes 2 weeks
- There are no limits on the scope of business
- Basically NO NEED FOR ANY REAL REGISTERED CAPITAL
- Free currency exchange with no Limitations
What is the fastest way to get set up ?
The fastest way is setting up a Hong Kong company, as all the documents are already in Chinese and Hong Kong is also a Tax Free zone so all profit can be sent from your China Company to its Holding Hong Kong company, saving of taxes.
You can download our WHY HONG KONG PDF here>
How to choose a Chinese company name (as I don't speak Chinese)?
Corporation China can assist your company with that , its can be a “sounds like the English name” ( as in the case of Mcdonalds where it goes by the Chinese name of 麦当劳 Màidāngláo) or a good meaning Chinese company name , but at the end of the day most companies still use their English name for marketing and logos.
Do I need to go to China to get started?
No, we can set 99% up by email, You will need to come to open the bank account once the company has been set up only if you are the Legal Person of the company.
Can Corporation China povide a Virtule type office and China Telephone number ?
Yes , we have many offices in China and we can provide you a Virtual Address to put on your business card and a telephone number answered in your company name or diverted to anywhere in the world. More info
If I contact Corporation China, can you understand me?
At Corporation China we privileged to have staff from all over the world working in our China Offices, here is a few the languages we speak : English, Italian, Swedish, Finnish, Dutch, French, Spanish, German, Portuguese, Afrikaans, Japanese, Shanghainese, Cantonese and of course Mandarin and some Chinglish (Chinese English).
Why use Corporation China?
Corporation China is the Official Partner of The FTZ
+ Full Info
Shanghai Free Trade Zone Company Registration
The Wholly Foreign Owned Enterprise, abbreviated WFOE, is a common investment vehicle for mainland China-based business. The unique feature of a WFOE is that involvement of a mainland Chinese investor is not required, unlike most other investment vehicles. WFOEare limited-liability corporations organized by foreign nationals and capitalized with foreign funds. This can give greater control over the business venture in mainland China and avoid a multitude of problematic issues which can potentially result from dealing with a domestic joint venture partner. Such problems often include profit not being maximised, leakage of the foreign firm\\\’s intellectual property and the potential for joint venture partners to set up in competition against the foreign firm. However, WFOEs often have difficulty building up the necessary personal relationships or \\\’guanxi\\\’ which are of great importance in conducting business in mainland China.
WFOE are often used to produce the foreign firm\\\’s product in mainland China for later export to a foreign country. They do not automatically have right to distribute their products in mainland China, though a recent variant (the Foreign Invested Commercial Enterprise WFOE) has the ability to do so.
WFOE are among the most popular corporate models for non-PRC investors due to their versatility and unique advantages.
Such advantages include:
- the ability to uphold a company\\\’s global strategy free from interference by Chinese partners (as may occur in the case ofjoint ventures)
- total management control within the limitations of the laws of the PRC
- the ability to both receive and remit RMB to the parent company overseas
- increased protection of trademarks and intellectual property, in accordance with international law
- shareholder liability limited to original investment
- Consultancy Service WFOE.
- Manufacture WFOE
- Trading WFOE – Wholesale, Retail or Franchise in China
- FICE (Foreign-Invested Commercial Enterprise) FICE Registration
– Business Scope
The Business Scope is narrowly defined and interpreted for all businesses in China; a WFOE may only legally conduct business within the business scope that appears on its business license.
In the application documents, the business scope is written as a list ofbusiness activities that the WFOE will conduct in China, and the first business activity will define the overall nature of the WFOE for classification purposes. The classification will further define the minimum required capital, type of invoices, type of applicable taxes, etc. As one example, for a previous WFOE registration, the company’s business scope was written as “retail of cosmetic products, training on cosmetic products, after-sales services.” The nature of this WFOE was therefore defined by the Chinese authorities as a “retail-trading WFOE”, thus the required registered capital was RMB300,000, and it was able to receive the Value-Added-Tax invoices that are essential to a trading company in China.
Because the scope of business is crucially important in the WFOEbusiness registration application, We always confers with the appropriate officials to ensure that every business activity that is listed on the registration application is an approved business activity and that every business activity is designed as broadly as allowable so that clients can be more flexible in what activities they are allowed to conduct. We will not submit an application until we are assured that the application information follows the pertinent rules and regulations and that it will allow our clients to achieve the maximum benefits of running their businesses in China.
– Registered Capital and Total Investment Quota
Registered Capital and Total Investment Quota are two important types of capital that the Chinese government officials will check to ensure that both are listed correctly. The amounts for both types of capital will appear on the Approval Certificate and Business License.
Registered Capital is the amount of funds that the Chinese government requires of foreign investors to contribute to their projects in China (e.g. WFOE`s). The Chinese government sets requirements for the minimum amount of registered capital to start a business. Registered Capital must be of an amount greater than the minimum requirement of the China Company Law (currently RMB100,000). The Registered Capital can only come from the foreign investors, and must be actually paid into the company bank account then verified by an independent certified accounting agency in China. The amount of registered capital can be increased but official procedures will be required. Registered Capital must be no less than 70% of the Total Investment Quota; however, the ratio may be decreased when the amount of Registered Capital exceeds US$ 3 million.
The actual amount of Registered Capital required is subject to the final approval of the approval authority. The Chinese officials have the right to require a business to increase the amount of Registered Capital if they deem the minimum Registered Capital amount as insufficient for the requirements of the startup business according to the project description as written in the application documents. The final amount of Registered Capital required is sometimes a result of negotiations with the appropriate officials during the registration period.
Total Investment Quota is the total amount of funds that will be invested in the WFOE during its entire planned period of operation. The Total Investment Quota must be greater than or equal to the Registered Capital. Unlike Registered Capital, which has to be fully paid into the WFOE`s Chinese bank account before starting businessoperations, the Total Investment Quota is the total amount of funds planned to be contributed to the project over its lifespan and it does not necessarily have to be fully deposited in the bank. The excess amount of the Total Investment Quota over the Registered Capital can come from sources other than the foreign investors listed in the Articles of Association of the WFOE; for example, it can be borrowed from banks or other sources either inside China or from overseas. This amount can be increased but any additional amounts of Total Investment Capital must be approved by the relevant Chinese authorities.
Compared to registering a business in most Western countries, registering a business in China is challenging work filled with paperwork and bureaucratic red tape. It is practically impossible to properly complete the registration process without a qualified agency. Be sure that the agency is qualified and the agency has good connections and relationships with the various local authorities, and that they possess comprehensive knowledge about the numerous important aspects involved with legally and properly registering a WFOE.
Policies of Shanghai Free Trade Zone Company Registration:Gathered all the policy advantages of special custom supervisal of bonded area,bonded port area,comprehensive bonded area,bonded logistical park and export processing area.On the custom supervisal,foreign exchange management,inspection&quarantine and other managements,these area have the most complete,convenient and opened level.
General Planning of Shanghai Free Trade Zone,Tax policies with more international competitive,Foreign financial institutions open foreign capital banks,Shanghai Free Trade Zone promote the convenience of enterprises invest abroad,Cancel some limitations of foreign investment enterprise requirements,CNY convertible.
Foreign invested enterprises can participate in processing,international trading,bonded storage,domestic distribution,logistic,distribution,product exhibition,commercialized simple manufacture and testing,after sale and etc businesses.,etc.
The registration process of Shanghai Free Trade Zone,Name approval,Foreign investment approval,business license,organization code certificate,tax registration,foreign exchange registration,bank account opening,finance,statistics,customs,inspection and quarantine.
Shanghai Free Trade Zone Company Registration
The planning area of Shanghai Free Trade Zone is 28 square kilometers.Including Yang Shan Bonded Port Area,Wai Gao Qiao Bonded Area (Containing Wai Gao Qiao Bonded Logistical Park Area) and Pu Dong Airport Comprehensive Bonded Area.There will be tax preferential and special supervisal policies in these special areas.Compares with other bonded areas,Shanghai Free Trade Zone means more preferential policies and wider opening rage.
—What is Free Trade Zone?—
Free Trade Zone is divided into two different types.One of them is the generalized Free Trade Zone,it means two (or more) countries and areas cancel most of the products\\\’ custom tax and non-tariff barrier in separated phases through signing a free trade agreement.And the other one is Shanghai-the narrow Free Trade Zone.Meaning as far as import custom tax and other tax of any products in this area are concerned,they are regarded as outside China.Which means they are free of customary custom supervisal systems.
What is the difference between the Bonded Area and Shanghai Free Trade Zone?
Different than other bonded area,the biggest feature of the Shanghai Free Trade Zone is the special custom supervisal system called “Domestic but out of Customs”. Which means “Open the A line (Free Trade Zone and boarder line) and control the B line (Free Trade Zone and Non Free Trade Zone)”.
General back ground of Shanghai Free Trade Zone\\\’s Approval,China is now facing the “Second Entrance to the World”: China is not concluded in the European and America Free Trade Zone Negotiation and Pacific Partner Relationship Agreement.China is facing the big risk of “Second Entrance to the World” according the probability changes of future international trading rules and patterns.
—General Planning of Shanghai Free Trade Zone Company Registration—
1.Tax policies with more international competitive.
2.Foreign financial institutions open foreign capital banks.
3.Promote the innovative pattern of international trading.
4.Private capital and foreign financial institutions open joint venture banks.
5.Reforming and perfecting the area supervisal system.
6.Foreign invested enterprises can apply for <Payment Transaction License>.
7.Innovation of International Ship registration system.
8.Allow the registration of foreign invested credit information company.
9.International CNY and foreign exchange reformation.
10.No minimum register capital for financial leasing.
11.Shanghai Free Trade Zone promote the convenience of enterprises invest abroad.
12.CNY convertible (on probation).
13.Cancel some limitations of foreign investment enterprise requirements.