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Shenzhen WFOE Registered Capital

Shenzhen Registered Capital Service: 86-755-82143512

The registered capital of a Wholly Foreign Owned Enterprise (WFOE) should be subscribed and contributed solely by foreign investor(s). A WFOE does not include branches established in China by foreign enterprises and other foreign economic organizations. The Chinese Laws on WFOE do not have a clear definition of the term of "branches". The term of "branches" should include both the branch companies engaged in operational activities and representative offices, which are generally not engaged in direct business activities. Therefore, branches and representative offices set up by foreign enterprises are not WFOE.

Registered and Paid up Capital:

USD$140,000 is a good idea for all kinds of WFOE, with USD$ 140,000 investment it's easy to get approved. Initial Paid-up would be 20% of the registered capital, the balance should be remitted within 2 years.

Registered capital is the amount that it's required to run the business until it can break even - the 'registered capital' is a guideline only. If you do looking for a minimum registered capital, for instance RMB 30,000 (which is impossible to establish a WFOE in China) this means you will run out of money pretty soon, which leads to increased costs in reapplying for permission to increase capital, additional licensing fees and renewals of business licenses and so on. The WFOE needs funding via it's registered capital until it's about to support itself from it's own cash flow.

However the amount of registered capital is dependent upon factors like Scope of Business and Location. In reality local authorities will review the feasibility study report (and check the lease contract) approve the investment on a case-by-case basis; reduced registered capital could be negotiated in some cases.

The minimum registered capital guides for various industries according to our practice in China, for instance Beijing, Shanghai[100k RMB registered capital Sample], Guangzhou, Shenzhen, Hangzhou, Dalian, Ningbo are given below:
Consulting WFOE    RMB 100,000 ~ RMB 500,000
Service WFOE    RMB 100,000 ~ RMB 500,000
Hi-Tech WFOE    RMB 100,000 ~ RMB 500,000
Trading WFOE / FICE/ Retail    RMB 500,000 ~ RMB 1 million
Food & Beverage WFOE    RMB 500,000 ~ RMB 1 million
Manufacturing WFOE    RMB 1 million or USD 140,000

Contact Us

If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net or www.companies-registry.net  or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422 or 86-755-82143181 or emailing to tannet-solution@hotmail.com.




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