WFOE registration in Shenzhen, Guangzhou, Foshan, China has been a hot choice for foreign entrepreneurs along with the bursting China opportunities for the whole world and the independent management for the foreign investors without Chinese participated inside.
Are all industries suitable for WFOE registration in Shenzhen, Guangzhou, Foshan and China?
Yes, almost all industries are open to WFOEs. China WFOE registration could be classified into based on the main scope of business operation:
Of course there are some special industries requires foreign investors to jointing Chines investors to enter, for example railway transportation industry, please check: https://www.set-up-company.com/uploads/file/negative-list-for-foreign-investment-access-in-ftzs.pdf
What’s the capital requirement for setting up a WFOE in Shenzhen, Guangzhou, Foshan and China?
China has adopted the virtual registered capital for registration and no capital injection will be required in 30 years for WFOEs.
China has removed restrictions on the company's minimum registered capital for most of the industries but the registered capital figures still should state on the WFOE’s business license.
Under normal circumstances, different China WFOE’s registered capital would be suggested as below:
Trading WFOE: USD 100,000 – 150,000
Consulting/ Service/ Technology WFOE: USD 50,000 – 80,000
Manufacturing/ Logistics WFOE: USD 150,000 – 200,000
Food & Beverage WFOE: USD 50,000 – 100,000
Is it possible to use agents’ secretary address to set up a WFOE in Shenzhen Guangzhou Foshan and China?
Yes. Entrepreneurs could take advantage of the agents’ secretary address for company registration to save management cost to start the business right away.
The China registered address
provider need prepare below file for company registration:
1. Leasing contract original
2. Property ownership certificate copy
3. Property owners’ identity document copy
Who should be responsible for the China WFOE?
To understand who should be responsible for the China WFOE, you need to get a comprehend of the below concepts firstly.
Shareholder/ board of shareholders of the China WFOE is the highest authority of the China WFOE. Director/ board of directors is the operating decision-making and business executive body, which should be responsible for the shareholder or board of shareholders. Supervisor/ board of supervisors is the supervisory body of company business and leaderships. Manager/ general manager should be responsible for the director or the board of directors.
The legal representative/ person of the company shall, in accordance with the provisions of the articles of association, be held by the managing director or the head of the board of directors or the manager, and shall be registered according to law.
The legal representative/person of an enterprise is the signatory who represents the enterprise to exercise its functions and powers. Simply put it, the legal representative/person should be present physically in the banks for opening of China company bank account
How many foreign currencies accounts can be opened under the China WFOE bank account?
Basically, all major foreign currencies such as U.S. Dollar (USD) European Euro (EUR) Japanese Yen (JPY) British Pound (GBP) Swiss Franc (CHF) Canadian Dollar (CAD) Australian/New Zealand Dollar (AUD/NZD) and other currencies accounts all can be opened under the China WFOE bank account.
Is it easy to transmit the profit to Hong Kong from China WFOE regularly?
Yes. Finding the most efficient way to transfer China WFOE’s profits is essential for all companies in China. Using Hong Kong company as the holding company to set up the China WFOE has been the most popular method of establishment for foreign entrepreneurs because both the incorporation of a Hong Kong company and the tax system is very easy and cost friendly. And most importantly, the profit transfer from a WFOE in China to the Hong Kong company could be very easy and efficient.
Is it a must for the foreign entrepreneurs to come to China physically to start a WFOE?
No, it is not a requirement for the foreign entrepreneurs to come to China physically to open a WFOE. All the legal files could courier to you to sign. After the business license issued, the legal representative/person should come to China for bank account opening.
When a WOFE should start the accounting and company renew?
Within the 30 days after the WFOE business license issued, the China WFOE should start the monthly accounting to keep compliant with China laws and policies.
The yearly China WFOE renew begins and ends from March 1st to June 30th each year.
The failure to do the accounting and company renew will get the China WFOE blacklisted.
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