China Company Formation
Hotline: 86-755-82148419 Email: susiehu@citilinkia.com
China has become an interesting market for foreign investors over the years. The Asian country’s plentiful infrastructure, low manufacturing costs, and billions of customers have always proved the market’s rich atmosphere, especially to foreign entities.
If you’ve been planning to become a part of this very market, you might have been doing some research. All investors who want to form a Chinese company have to decide on a company-type before they get started. One of the primary company types that can be started in China, is a WFOE – or more commonly known as a Wholly Foreign-Owned Enterprise.
Unless you already know, a WFOE is the most popular (also beneficial) company type that foreigners usually go for. You’ll be able to take greater advantage by setting up a WFOE and will be able to exert greater control over the company.
How Much Initial Registered capital Will It Cost To Launch A WFOE?
It’s not in China’s interest to let foreign businesses open a company if they aren’t sure that there is sufficient capital in place to keep it running, create jobs, and pay staff on time. This is why the government usually insists on an amount of registered capital being committed to any new WFOE incorporation.
Registered capital in China depends on which industry you’re in, you’re likely to be required to provide the following registered capital levels:
Manufacturing: 1,000,000 RMB
Trading: 500,000 to 1,000,000 RMB
Consulting: 100,000 to 500,000 RMB
In China, the Subscribed share capital is different from varied situations and sectors. According to the latest Foreign investment Law, there is no restrictions for the minimum registered capital, the registered capital can be paid by installment, the capital to be paid subscribed in lump sum as contemplated in the Articles of Association could be paid up within 30 years from the date of issue of Business License. The registered capital can be decided and confirmed by the company based on the company operation involved expeneses.
Setting up the WFOE is not the end of the story. You will still need bookkeeping, accounting, work permits for foreign staff, and perhaps you would also need to register trademarks (amongst other things) before your new company can trade legally and be compliant.
While dropping huge bundles of cash on just opening your business in China is not a wise choice. Working with trusted local experts to set up WFOEs more cheaply, quickly, and correctly, is a sensible use of funds, and it's cost-effective.
ATAHK is an expert in corporate formation, trademark registration and all the follow-up business-related activities. ATAHK has established a sound service network worldwide for the small and medium-sized enterprises, all the services are business-orientated and solution-orientated.Through years of development, we have developed a service network in China’s major cities like Beijing, Shanghai, Guangzhou, Shenzhen, and popular cities among foreign people like Dongguan, Chengdu, Yiwu, Xiamen, Nanchang, Tianjin,three branches in Hainan. Equipped with competent consultancy team,ATAHK is able to provide various business solutions from business incubation, business operation to business management.
Contact Us
For further inquiries about investment in China, please do not hesitate to contact us at anytime anywhere by simply calling China hotline at 86-755-82148419, or emailing to susiehu@citilinkia.com.