Guangzhou Wholly Foreign Owned Enterprise Formation
WFOE (wholly foreign owned enterprise) is a business entity formed in China entirely with foreign capital. It is totally under foreign control and does not have any formal Chinese ownership participation. For a foreign company to be able to issue receipts and export goods from China, it must be able to legally registered as a local company or a WFOE. A WFOE is set up as limited liability entity and represents separate legal persons and is taxed according to local legislation.
Guangzhou Wholly Foreign Owned Enterprise formation（WFOE）is also called Guangzhou Wholly Foreign Owned Enterprise setup, Guangzhou Wholly Foreign Owned Enterprise Registry, Guangzhou Wholly Foreign Owned Enterprise incorporation and Guangzhou Wholly Foreign Owned Enterprise establishment.
Guangzhou Wholly Foreign Owned Enterprise formation -Advantages of WFOE in Guangzhou
Ability to formally carry out business rather than just function as a representative office which is restricted in many ways.
There is no requirement for investors to be established for over 2 years while parent company of Representative Office should as least has 2 years history.
Protect Intellectual property and Independent technological patents
Greater efficiency in management, operations and future development
Ability to receive RMB revenues and issue official invoices.
Legal profits, lawfully-earned income and funds after liquidation can be remitted abroad.
Able to convert RMB profits to US dollars for remittance to its parent company outside of Guangzhou
Guangzhou Wholly Foreign Owned Enterprise formation -Application Documents for WFOE in Guangzhou
2x Original Bank Reference Letters from investor’s bank (declare a good standing).
2x Original Certificate of Incorporations, Articles of Incorporation or Equivalent document notarized by local lawyer and endorsed by Chinese embassy or consulate. For individual investor: 2x original Passport copies of Investors need be notarized by local lawyer and endorsed by Chinese embassy or consulate.
The latest annual audit report copy of Investor Company provided by a Certified Public Accountant (CPA) (For foreign companies established over one year)
Certificate of Guangzhou Company domicile: 2x original leasing contracts, 2x copies of house property certificate with company stamp or signature of lesser and 2x landlord identification documents (The lessee should be acted by legal representative or investor. The area is required no less than 30 ㎡ and for commercial use only with more than one year’s rent and the lease contract should be endorsed by local Housing Management Authority)
ID or passport copy of directors, supervisors and managers
ID or passport copy and 4 photos (2 inches size) of legal representative
Appointment letter for legal representative, directors, supervisors and managers
Letter of authorization for service of legal documents
Other relevant documents and certificates;
Guangzhou Wholly Foreign Owned Enterprise formation -General Procedures
Name Pre-registration with Guangzhou Administrative Bureau of Industry and Commerce
Pre-approval document or certificate for some special industries
Approval application from Fire and Environment Bureau for manufacturing industry
Certificate of Approval issued by Bureau of Foreign Trade and Economic Cooperation of Guangzhou Municipality
Registration for Business License
Carving of Company Chops
Registration for Organization Code License
State tax certificate registration
Local Tax certificate registration
Registration and Approval with State Administration of Foreign Exchange (SAFE)
Bank account opening including foreign currency and RMB
Guangzhou Wholly Foreign Owned Enterprise formation-General Taxation Information
The Tax System in Guangzhou has undergone tremendous changes in recent years. Currently, there are 24 different types of tax imposed on a wide range of incomes and transactions. Taxpayers can be individuals, entities or economic organizations. Since Jan. 2008, Guangzhou's new corporate tax rates range from15% to 25%. (The rate depends on the places where the company is registered and the industry that a company engaged). To fulfill its WTO commitments, the Chinese government is currently preparing for another round of tax reform, which is expected to take place in 2010.
Guangzhou Wholly Foreign Owned Enterprise formation-Follow-Up Service
General tax payer application
Guangzhou Export Tax Refund Application
Import and export license application
Business license alteration
Apply Capital Verification Report with Certified Public Accountant (CPA) (after Inject capital from investor’s overseas bank account).
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