Setting up a WFOE in Tianjin China
Hotline: 86-755-82143348, Email:amyhuang@citilinkia.com
WFOE refers to wholly foreign owned enterprise. Setting up a WFOE in Tianjin is also called setting up a wholly foreign owned enterprise in Tianjin.
Definition:
It is a liability limited company with the 100% shares held by foreign investors. The shareholders can either be individuals or companies. They can all be individuals, or all be companies, or combination of individuals and companies from overseas.
Numbers of shareholders:
There should be at least one shareholder. And the maximum is 50 for a liability limited company.
Restricted business activities:
Most business activities are available for foreign invested companies. The popular types are trading, technology, service, and manufacturing. But business related to education and medicine are restricted.
Documents needed:
1. Legalization of investing parent company;
2. Tianjin registered address;
3. Tianjin company name, registered capital, and details of business scope;
4. Appointing management staff for Tianjin company.
Timeline: One week
Taxation:
There are mainly two kinds of tax for a company in mainland China. One is business profit tax and the other is VAT tax.
When the company is a small scale taxpayer, the VAT is 3% upon the company income. And the business profit tax will be 5% when the annual turnover is less than RMB 1 million. The business profit tax will be 10% when the annual turnover is between RMB 1 million to RMB 3 million. The business profit tax will be 25% when the annual turnover is higher than RMB 3 million.
When the company is a general tax payer, the VAT is 13% upon the company income for the trading type. And the business profit tax would be 25%.
For more information about WFOE setup in Tianjin China, please do not hesitate to contact us by calling 86-755-82143348 or mailing to amyhuang@citilinkia.com.