China WFOE Setup
China WFOE Set-up Service
Hotline: 86-755-82143348, Email:email@example.com
China WFOE Setup is also called China WFOE formation, China WFOE registration, China WFOE incorporation and China WFOE establishment. Wholly foreign-owned enterprise (WFOE) is a limited liability company 100% owned by one or more individual or corporate foreign investors. The liability of the investors is limited to their subscribed registered capital. WFOEs are the most popular form of FIE.
China WFOE Setup-different types of WFOE
There are many businesses for WFOEs. The following are frequently chosen by our clients:
1. If the WFOE manufacture here, we call it a it's Manufacturing WFOE.
2. If the WFOE is allowed to do Consultancy or Service, we call it Consultancy (or Service) WFOE.
3. If the WFOE is allowed to do trading, wholesale, retail or franchising in China, we call it a Trading WFOE or Foreign-Invested Commercial Enterprise (FICE).
China WFOE Setup-Advantages of WFOE
The advantages of establishing a WFOE include, but are not limited to:
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 out business rather than just function as a representative office and being able to issue invoices to customers in RMB and receive revenues in RMB;
3. Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
4. Protection of intellectual know-how and technology;
5. Full control of human resources
6. Greater efficiency in operations, management and future development.
7. Investor's parent company does not have to be established for more than 2 years while for Representative Office, its parent company is required to have been established for more than 2 years.
China WFOE Setup-Business scope
One of the most important issues in WFOE application is business scope. Business scope needs to be defined and the WFOE can only conduct business within its approved business scope, which ultimately appears on the business license. Any amendments to the business scope require further application and approval. Inevitably, there is a negotiation with the approval authorities to approve as broad a business scope as is permitted. Generally business scope includes investment consulting, international economic consulting, trade information consulting, marketing and promotion consulting, corporate management consulting, technology consulting, manufacturing, etc. With China's entry into WTO, more and more business is open to WFOE especially in Trading, Wholesale and Retail business.
China WFOE Setup-Registered and paid up capital
Registered Capital: USD$140,000 is a decent investment capital for many types of WFOE. (With USD$ 140,000 investment it's easy to get approved). RMB 100,000 ~ RMB 500,000 (Approx. USD$15,000- 75,000) is the advisable as minimum investment capital to be approved for Consulting WFOE, Service WFOE, Hi-Tech WFOE registration in China. After the approval, initial paid-up capital should be injected within 3 months which could be 20% of the registered capital; the balance should be remitted within 2 years.
Consulting WFOE* RMB 100,000 ~ RMB 300,000 (Approx. USD$ 15,000- 50,000)
Service WFOE RMB 100,000 ~ RMB 300,000 (Approx. USD$ 15,000- 50,000)
Hi-Tech WFOE RMB 100,000 ~ RMB 300,000 (Approx. USD$ 15,000- 50,000)
Trading WFOE / FICE RMB 300,000 ~ RMB 1 million (Approx. USD$ 75,000- 140,000)
Food & Beverage WFOE RMB 500,000 ~ RMB 1 million (Approx. USD$ 75,000- 140,000)
Manufacturing WFOE RMB 500,000+ (Approx. USD$ 75,000+)
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 emailing to firstname.lastname@example.org
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