Register a company in Shenzhen WFOE
Hot Line: 86-0755-82143348 Email: amyhuang@citilinkia.com
The ever-changing and growing market in China has set the tone for this country for many years to come. China is the worlds largest economy and has also managed to acquire a solid and reliable business climate in China. Shenzhen now as a very young and energitic city to start the business is a golden choice for you to start your business in China. With good location and business environment, it will give you more opportunity than ever.
Introduction of WFOE
The Wholly Foreign Owned Enterprise (WFOE) 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, with China's entry 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.
The registered capital of a Wholly Foreign Owned Enterprise (WFOE) should be subscribed and contributed solely by the foreign investor(s). A WFOE does not include branches established in China by foreign enterprises and other foreign economic organizations. The Chinese Laws on WFOE do not have a clear definition of the term of "branches". The term of "branches" should include both the branch companies engaged in operational activities and representative offices, which are generally not engaged in direct business activities. Therefore, branches and representative offices set up by foreign enterprises are not WFOE.
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Different types of WFOE
There are many businesses for WFOEs. The following are frequently chosen by our clients:
If the WFOE manufacture here, we call it a it's Manufacturing WFOE.
If the WFOE is allowed to do Consultancy or Service, we call it Consultancy (or Service) WFOE.
If the WFOE is allowed to do trading, wholesale, retail or franchising in China, we call it a Trading WFOE or Foreign-Invested Commercial Enterprise (FICE). (You can check "FICE Registration" on the right menu for more information and details about the FICE)
Advantages of WFOE
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;
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;
Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
Protection of intellectual know-how and technology;
Full control of human resources
Greater efficiency in operations, management and future development.
newInvestor'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.
Contact Us
If you have further queries, don’t hesitate to contact ATAHK anytime, anywhere by simply visiting ATAHK’s website www.3737580.net , or calling hotline at 86-755-82143348 ,or emailing to amyhuang@citilinkia.com.