Comprehension of Shanghai WFOE Registration Service
Shanghai hotline: 021- 68877368
Comprehension of Shanghai WFOE Registration , before WFOE Regiatration, there are some name requirements for it. Then the following are comprehension of Shanghai WFOE Registration.
The Wholly Foreign Owned Enterprise 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.
WFOE has great potential in China as companies seek new markets, executives say that by 2014 China will be the world’s top investment destination.
Advantages of WFOE
1.The advantages of establishing a WFOE include, but are not limited to: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;Full control of human resources
5.Greater efficiency in operations, management and future development.
6.Investor's parent company does not have to be established for more than 2 years while for Representative Office, it's parent company is required to have been established for more than 2 years.
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.
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.
Comprehension of Shanghai WFOE Registration
Name of WFOE can not be repeated. The industry is related with the registered capital. You should prepare more than 3 names. The format of names: Shanghai+ word size+ industry +limited company, or Word size + Shanghai+ industry + limited company. E.g. Tannet group (Shanghai) limited company
Contact Us
For further queries, please do not hesitate to contact Tannet at anytime by calling
Shanghai Hotline: 021-68877368, 18101640557
Fax：58402186
E-Mail: hkcfm-shanghai@163.com
Address: Block F, 15th Floor, World Plaza, No.855 South Pudong Road, Pudong New Area, Shanghai