China WFOE Registration
China WFOE Registration Service
Hotline: 86-755-82143512, Email:email@example.com
China WFOE Registration-features of WFOE in China
The Wholly Foreign Owned Enterprise (WFOE or WOFE) is a Limited liability company wholly owned by the foreign investor(s). In China, WFOEs were originally conceived for encouraged manufacturing activities that were either export orientated or introduced advanced technology. However, after China's entried into the WTO, these conditions were gradually abolished and the WFOE is increasingly being used for service providers such as a variety of consulting and management services, software development and trading as well. With that, any enterprise in China which is 100% owned by a foreign company or companies can be called as WFOE.
The unique feature of a WFOE is that the entity is 100% owned and capitalized by foreign investors and operating without a local partner. This maintains greater control over the business operations, targets and profits of the company, letting the mother company to concentrate their own operations, without needing to consider the option of a local partner. WFOE is a favorable choice for an overseas company that wants to permanently incorporate into mainland China.
China WFOE Registration-Types of WFOE in China
1. Consultancy Service WFOE.
2. Manufacture WFOE
3. Trading WFOE - Wholesale, Retail with Import& Export License
4. FICE (Foreign-Invested Commercial Enterprise)
China WFOE Registration-Choosing WFOE Company Name
The official company name of a WFOE in China should be in Chinese. The Chinese name should be formatted as: first word -company name/product (For instance: MCK; second word: activity (For instance: business consulting); third word: location/name of city (For instance: Shanghai, Beijing); fourth word - company structure. (For instance: Co., Ltd.) With that a company called MCK register in Beijing engages Business Consulting Service LLC will be called: MCK business consulting (Beijing) Co., Ltd. The name then has to be registered with the local Administrative Bureau for Industry and Commerce (SAIC). The use of the word 'China' or 'International' in their Chinese name, have to have a minimum capital of US$10,000,000 instead of US$ 100,000. These words will have to be avoided therefore, although they are permitted in the non-Chinese name.
China WFOE Registration-Business License
Business license is the key official document of the WFOE (like Certificate of Incorporation in Other countries).Once your business license is approved by State Administration of Industry and Commerce (SAIC) (SAIC). Having obtained certificate from the tax authority, you are now legally entitled to open foreign exchange and RMB accounts and can start to hire staff, sign contracts, apply for work permit and residence permit and the WFOE is now in business in China.
China WFOE registration-General Tax Information
Since Jan. 1, 2008, China's new corporate income tax rates begins with 25% although some industries still enjoy a lower rate which is15%, the rate depends on the places where the company is registered and the industry that a company engaged. Please check the latest Corporate Income Tax Law of China above. All enterprises are required to report to the Tax Administration Department monthly, quarterly, annually. Tannet provides part time accountant service for our clients; you are welcome to contact us for more information.
China WFOE Registration-Annual Audit Report
Any limited companies in China should summit annual audit reports to the relevant authorities. The audit reports are including: balance sheets and income statements for their annual Chinese audit. The annual audit and licenses renewal cost is about RMB 6,000. Any company will be subject be to a fine if the Annual Audit Report is not submitted in a timely manner. (June 30th is the deadline of an annual audit report submission and licenses renewal in China)
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