Shanghai Wholly Foreign Owned Enterprise (WFOE) SetupService
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Shanghai Wholly Foreign Owned Enterprise (WFOE) setup is also known as Shanghai Wholly Owned Foreign Enterprise (WOFE). Shanghai WFOE is a limited company, the establishment of which is governed both by the Company Law of PRC and Law of the PRC on Enterprises Operating Exclusively with Foreign Capital.
Shanghai WFOE can engage itself in approved business activities and issue tax invoices on its own. It is a corporation and a tax resident. All shareholders of Shanghai WFOE should not be Chinese nationals.
Shanghai Wholly Foreign Owned Enterprise (WFOE) Setup-Name of Shanghai WFOE
The name of Shanghai WFOE is governed by "Regulations on the Management of name of Enterprises". Since Shanghai WFOE is a limited liability company, its name should be in the form of "Name of City + Name of the Enterprise +Industry+ Company Limited ". Accordingly, a company registered in Shanghai will normally bear a name like: USCorp Software Development (Shanghai) Limited.
There are certain restrictions on the use of company names
(1) It should be in Chinese;
(2) Arabic numerals, foreign characters or alphabets are not allowed;
(3) It should not have content that contradicts national policies, damages social ethics, religions and culture;
(4) It should not have content which damages fair competition and misleads the public;
(5) Unless special approval is obtained, it should not contain the following restricted words: China, Chinese, National, State. "International" is a restricted word unless it is used to designate the industry in which the company is operating, e.g. ABC International Trading Company Limited.
Name of Shanghai WFOE has to be approved by the government before registration.
Shanghai Wholly Foreign Owned Enterprise (WFOE) Setup-Shanghai WFOE Application Procedures
Shanghai WFOE application is a four-step procedure:
Step one: Application for approval of intended investment activities (project proposal). The examination and approval authority shall reply within 20 days on receipt of the proposal.
Step two: Application for intended name to be used by the WFOE with the Shanghai Administrative Bureau for Industry and Commerce.
Step three: Application for the approval of feasibility study, constitution (memorandum and articles of association). A feasibility study will be prepared covering financing, site selection, technological process, equipments, raw material supply, market survey, economic results, foreign exchange, infrastructure facilities, etc.
Articles of Association should be prepared and submitted to the examination and approval authority. The examination and approval authority shall reply within 30 days on receipt of the feasibility study report and articles of association.
After the feasibility study report and articles of association have been approved, the applicant shall apply to the examination and approval authority, which shall issue the Approval Certificate within 3 days after receiving the application.
Step four: Registration with the Administration for Industry and Commerce. The company may then register with Shanghai Administrative Bureau for Industry and Commerce within 30 days after receiving the Approval Certificate and apply for the business licence. Shanghai Administrative Bureau for Industry and Commerce shall issue the business licence within 10 working days to those projects approved by the examination and approval authority of Shanghai. The enterprise is deemed as established on the date when the business licence is issued.
The foreign enterprise may engage an agent authorized by Shanghai Municipal Foreign Economic Relations and Trade Committee to handle its application on its behalf.
Shanghai Wholly Foreign Owned Enterprise (WFOE) Setup-Shanghai WFOE Business Address
A separate business address, located in commercial buildings or locations is required as the official address. One address could be used by one company only.
Shanghai Wholly Foreign Owned Enterprise (WFOE) Setup-Time Required
It normally takes less than 30 days from receiving instructions and full particulars and necessary documents form the applicant to issue the Approval Certificate. Thereafter, the Post-establishment Registration procedures take less than 30 days.
Contact Us
If you have further queries in Shanghai Wholly Foreign Owned Enterprise (WFOE) Setup, don’t hesitate to contact ATAHK at anytime, anywhere by simply visiting ATAHK’s website www.3737580.net , or calling Hong Kong hotline at 852-27826888 or China hotline at 86-21-68877368 21-31397142 21-58822399, or emailing to hkcfm-shanghai@163.com.
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