In the business operation, some Shanghai WFOE may need to change the legal representative to adapt to the actual reality. While the changing of the legal representative for Shanghai WFOE is not an easy thing as well, since a few procedures and applications need to be completed. This article is to make a brief introduction of the legal representative of the Shanghai WFOE, which may help if you happen to have such demand as changing the legal representative for Shanghai WFOE.
What’s a WFOE’s legal representative?
The legal representative is the focal management figure of the company who will:
1.Legally represent the company.
2.Be responsible for compliance with all relevant laws, such as environmental, tax, and business laws.
3.Enter into binding contracts on behalf of the company.
4.Submit reports to regulatory bodies.
5.Sign company share certificates and bonds.
The legal rep's name appears on the company's business license as well as the registered capital amount and company's scope of business, and he or she is seen as responsible for that company and its operations in the eyes of the law in China.
PLEASE NOTE: The legal representative could be held personally responsible for the company's misdeeds, even if they were not aware of an issue happening.
Who can be legal representative?
For a WFOE either the Chairman, executive director, or a senior manager can be appointed legal rep. This person can be a foreigner, or a Chinese national.
Can a legal rep be changed?
Yes. If for whatever reason a company legal representative needs to be changed in China, the new representative's details must be submitted to the company registry authority.
Above are a few questions that are quite concerned by the Shanghai WFOE, and answers to each questions, hope that would help in your understanding of the position of the Shanghai WFOE, and when you considering changing the legal representatives for Shanghai WFOE. You are also welcome to contact us to find out more details.
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