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Tommy China Business Consulting Provides practical assistance to International SME establishing and expanding business in China.\nVisit here for more about- http://www.tommyconsulting.com\n

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how to set up wholly foreign owned enterprises

How to Set Up Wholly Foreign-Owned Enterprises WFOE in

Guangzhou China, WFOEs Registration Procedure and

Document Required in Guangzhou

Brief Introduction to Guangzhou

Guangzhou is situated at the heart of the most-populous built-up

metropolitan area in mainland China, an area that extends into the

neighboring cities of Foshan, Dongguan, and Shenzhen, forming one of the

largest urban agglomerations on the planet.

Guangzhou is regarded as one of the central cities of China and core cities

of the Pearl River Delta, Guangzhou has long been the top choice for

multinationals for investment deployment in China since China's reform

and opening-up.

With the improvement of industry vitality, infrastructure, business cost,

talent and innovation, the city will attract more global capital,

technology, talent and information, and make itself more internationally

competitive.

283 Fortune Global 500 companies, have established their Chinese branch

headquarters in the city. Microsoft, IBM, Samsung and Cisco are among the

many that have chosen to make Guangzhou their home in mainland China.

For more information about Guangzhou,Please visit

http www eguangzhou gov cn index html http

http://www.eguangzhou.gov.cn/index.html

http://english.gz.gov.cn/gzgoven/index.shtml

How to Set Up Wholly Foreign-Owned Enterprises WFOE in Guangzhou China,

WFOEs Registration Procedure and Document Required in Guangzhou

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

Wholly owned foreign entities (WOFEs) are the vehicle of choice for most people

and companies doing business in China. It is less complex than a joint venture

(JV) and allows you to concentrate on what your employees are up to as opposed

to your partners. It is required to register as a legal person who is restricted

to certain businesses. The enterprise is able to implement strategies that

effectively conform to the interests of the parent company aboard. Moreover,

technology and know-how are given better protection.

No. minimum registered capital is required for WFOEs with scope of business of

consulting, Trading, retailing, information technology etc. in China. There are

minimum registered capital still required for some industries for instance:

Banking, Forwarding etc Since China still maintains foreign currency control

policy, it's still advisable to choose registered capital within RMB 100,000

~ RMB 500,000 as the minimum registered capital. Companies can now determine

how much capital will be required to maintain

how much capital will be required to maintain their operations and must simply

ensure that they meet those targets within a period of 10 years.

Advantages of WFOE

1. Independence and freedom to implement the worldwide strategies of its parent

company without having to consider the involvement of the Chinese partner;

2. Ability to formally carry on business rather than just a representative office

function;

3. Issue invoices to their customers in RMB and receive RMB revenues. Convert

RMB profits to US dollars for remittance to their parent company outside.

4. cheap labor, which can lower your cost;

5. not required to share profits with Chinese counterpart;

6. Greater efficiency in its operations, management and future development.

Registration process

The application process to create a company in China generally takes three to

six months. The establishment process varies based on the WFOE form and the

planned business scope. For example, a Manufacturing WFOE will require an

environmental evaluation report, and Trading WFOEs will need to undergo

customs/commodity inspection registration. The application process can be

divided into two parts:

• Pre-registration – what happens before the company formally exists

• Post-registration – what happens after the company formally exists

pre registration

Pre-registration

1. Name registration

The company name can be translated from English by meaning and/or phonetically.

Verification of feasibility of the proposed name by the AIC will take a few

working days. Only the Chinese name will be legally binding – the English name

is not legally relevant for Chinese authorities. Note that the words “China”

and “International” cannot be freely included in the Chinese name, and are

subject to further requirements.

2. Issuance of approval certificate and temporary business license

The authorities will issue the approval certificate and temporary business

license after assessing the following documentation:

From the investor:

• Business license (certificate of incorporation – depending upon locations,

this may need to be notarized in the investor country of origin, and then

translated into Chinese);

• Bank statement to demonstrate credit worthiness (from relevant bank in country

of origin and translated into Chinese); and

• Photocopy of passport of the legal representative of the investor company.

From the new company:

about the new business name of the company

• About the new business – Name of the company, business scope, registered capital,

business term, lease contract;

• About the legal representative – Photocopy of passport and passport-size

photos;

• About the directors – CVs, photocopies of passports, and passport-size photos;

• Feasibility study report – Outlining the estimated cash flow for the next three

years;

• Articles of association; and Environmental protection evaluation report (if

applicable).

The approval certificate will be issued by the local office of the MOFCOM. Upon

issuance, there is a 30-day limit for registering the company with the AIC, which

then issues the temporary business license.

Post-registration

Following the issuance of the temporary business license, the WFOE would need

to perform a number of formal registrations at various Chinese government

entities, including applying for carving various seals (or chops) in order to

authorize documents on behalf of the company, as well as opening an RMB account

for managing daily operating expenses and a foreign capital account for receiving

foreign currency.

From 1st October 2016, China Ministry of Commerce has changed the foreign

investment approval system into filing system. It means WFOE whose industry is

not restricted type or prohibited type

not restricted type or prohibited type can directly start the business

registration first and then complete the filling system on website of Ministry

of Commerce. This change has greatly reduce the policy risk when foreign investor

plans to start a WFOE in China.

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.

Tommy China Business Consulting has direct connections in the local government

since 2006 tcbc has been focusing on consulting

Since 2006, TCBC has been focusing on consulting services for our clients to

invest in Guangzhou China. We are specialized in establishment of wholly foreign

owned enterprises (WFOEs), setting up of offshore companies, trading services,

tax minimization Assist in obtaining government approvals and certificates for

running business, negotiate and draft various legal documents provide legal

advice, negotiate government officer for Land acquisition Advising on formation

of WOFE and business structures ,managing and controlling WOFE in Guangzhou China,

drafting privacy policies and structuring commercial transactions

TCBC will manage all aspects of incorporation to get you a business license in

Guangzhou China.

Please visit Http://www.tommyconsulting.com

Email: tomlee@tommyconsulting.com, Skype: tomleeli

WhatSapp/Wechat/Cell Phone: +86 18926401128