Establish Wholly Foreign Owned Enterprise (WFOE)
FOE have in recent years become the most popular investment vehicle in China. This option allows you to the maximum level of control over your business in China. It gives you a higher level of control over proprietary technology or methodology used in your manufacturing and allows you to control quality and production. You will be able to bring in management personnel from your parent company to oversee the operation.
The process requires careful planning and often involves a significant capital investment.
· Application
· Documents required for application
· Post-establishment registration procedure
· Time required
· Annual Examination
· Audit & Accounting
1. Application
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Application for approval of intended investment activities (project proposal)
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Application for intended name to be used by the WFOE with the Shenzhen Administrative Bureau for Industry & Commerce
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Application for the approval feasibility study, constitution (memorandum and articles of association)
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Registration with the Administration for Industry & Commerce
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2. Documents required for application
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Form for Establishing Wholly Owned Foreign Enterprise
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An application duly signed by the chairman of the board or general manager of the foreign enterprise with the following details, name of WFOE, name of the legal representative, scope of business, duration and address, etc.
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Statutory documents of the parent company issued by the authorities of the country or region of origin
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A letter issued by a bank which has business relations with the applicant cerifiying its financial and credit standing
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A flexibility report
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Leasing agreement of the office premises
Investor as a company history more than one year ,need to offer the financail report of last year.
Capital of investment
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3. Post-establishment registration procedure
· Application of Enterprise code
· Preparation of statutory stationery, including company chops
· Registration with the State & Local Tax Bureau
· Registration with the foreign currency bureau
5. Time required
It normally takes 30 days from receiving instructions and full particulars and necessary documents form the applicant to issue the Approval Certificate. Thereafter, the post-establishment registration procedures takes about 20 days
6. Annual Examination
Annual examination is a system that is peculiar to corporations in China. The Shenzhen Administrative Bureau for Industry & Commerce, together with other departments concerned are authorized by law to conduct an annual examination of the enterprise. In brief, the objective of the examination is to investigate whether the enterprise abides to the laws, regulations and the conditions for granting its licenses.
The annual examination will be conducted from January to May every year. Those enterprises unable to fulfill the requirements of the annual examination may have their business licenses revoked
7. Audit & Accounting
Accounting records are required to be kept in Chinese or Chinese with English. Annual audit by a local auditor is required. Hongda Business Consulting offer full accounting service for your company, for more detail, please refer to our Accounting Service Page. |
