Setting up a company in Yiwu
Setting up a company in Yiwu is not a simple matter. You will need to hire a China-based law firm or business consulting firm to guide you through the process.
The level of difficulty in setting up your company depends on your industry. The reason is that China encourages foreign investment in certain industries while discourages it in others.
There are several different registration classifications for foreign companies doing business in China. You will need to decide which one best suits your needs. The main classifications are Wholly Foreign Owned Enterprise (WFOE), Joint Venture (JV), Representative Office and Partnership Enterprise (PE).
Setting up a company in Yiwu-- Wholly Foreign Owned Enterprise
A Wholly Foreign Owned Enterprise is a business that is 100% owned by a foreign company or companies. These are often established in Special Economic Zones. Only businesses in certain industry categories are allowed to set up as a WFOE. A WFOE requires a minimum capitalization, can generate income, pays tax in China and can repatriate profits.
A Joint Venture is a partnership between a foreign company and a local partner. A Joint Venture may be appropriate if WFOEs are not permitted in your industry classification.
Setting up a company in Yiwu-- Representative Office
A Representative Office is easier to set up than either a WFOE or JV. It costs less and does not require capitalization. However, Representative Offices may not engage in trade, receive fees for service, sign contracts or directly generate income. They are typically used for market research, promotion, and establishing or maintaining China business contacts.
Setting up a company in Yiwu-- Partnership Enterprise
A Partnership Enterprise is a new classification that came into effect March 1, 2010. It allows partnerships between foreign companies and individuals, and Chinese companies and individuals.
Setting up a company in Yiwu--time need
It typically takes 4 to 6 months to register a WFOE or JV, depending on scale and industry.
A number of government offices are involved in the process including the Ministry of Commerce or its subsidiary, the Local Industry and Commerce Administration Bureau, the State Taxation Bureau, the Local Taxation Bureau, the Foreign Administration Office of Police, the Bank, the Foreign Exchange Administration Bureau, the Public Security Bureau, and the Customs Office.
Setting up a company in Yiwu--Basic Steps
Here is an outline of the basic steps to setting up a WFOE or JV in Yiwu. The process is simpler for Representative Offices.
1) Name Approval
2) Approval to Establish Company
3) Registration of Business License
4) Filing and Carving Seals
5) Enterprise Code Certification
6) Statistics Bureau Registration
7) Foreign Exchange Approval
8) Registration with City Tax Bureau
9) Setup of Bank Accounts
10) Customs Bureau Registration
11) Capital Verification
12) Business License Update
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website www.yiwu-company.net or www.tannet-group.net, or calling us at 86-579-85206707 or China hotline at 86-755-82143422 or emailing to email@example.com.
Yiwu address: R.1906,Block A,FuTian Building,North ChouZhou Road, YiWu,ZheJiang,China
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