Malaysia Hotline:
+603-2141 8908
Shanghai WFOE
Registration
Shanghai WFOE Registration, known as Wholly Foreign Owned Enterprise
(WFOE or WOFE), 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.
Shanghai is China's largest economic center and trade port, the largest
comprehensive industrial city, the country's major science and technology
center, trade center, financial and information center, which attracts
nomourous investors’ attention.
Characteristics of a
WFOE
Wholly Foreign Owned Enterprise (WFOE), also known as Wholly Owned
Foreign Enterprise (WOFE), is a limited liability company, the establishment of
which is governed both by the Company Law of PRC and Law of the PRC on
Enterprises Operating Exclusively with Foreign Capital.
A WFOE can engage itself in approved business activities and issue tax
invoices on its own. It is a corporation and a tax resident. All shareholders
of WFOE should not be Chinese nationals.
Advantages of WFOE
-
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.
-
New Investor'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.
Materials for Shanghai
WFOE registration are as follows:
Investing as a foreign
corporate:
(1) 3 company Chinese names at least;
(2) 2 original Notarization of the business license or certificate of
incorporation of the parent company（It should be
notarized by domestic notarization Department and endorsed by local China
Embassy）;
(3) 1 original bank reference letter（It is opened from investor's bank, the deposit money is not less than the
registered capital in China, issued within 6 months in both English and Chinese
version）;
(4) Recent 1 year Audit report from foreign investing company;
(5)Registered capital, investment ratio, and business scope;
(6) Photocopies of Corporate and supervisors’ identity materials, (if a
board of directors, please provide copies of board membership);
(7) Articles of associations and Feasibility Study Report (Tannet
provides with standard template);
(8) A set of documents require for investors and Shanghai legal
representative’s signatures (Tannet provides);
(9)House Rent
Investing as natural
persons:
(1) 3 company names at least;
(2) Providing investors’passport（It should be notarized
by domestic notarization Department and endorsed by local China Embassy）;
(3) 1 original bank reference letter（It is opened from investor's bank, the deposit money is not less than the
registered capital in China, issued within 6 months in both English and Chinese
version）;
(4)Registered capital, investment ratio, and business scope;
(5)Photocopies of leagal person and supervisors’ identity materials,
(6) Articles of associations and Feasibility Study Report (Tannet
provides with standard template);
(7) A set of documents require for investors and Shanghai legal
representative’s signatures (Tannet provides);
(8) Contract of rent.
Tannet's Services
Tannet Malaysia is an international company based in Hong Kong, Shenzhen. We provide one stop business solution to those who are interested to invest business overseas. We provide various of services such as commercial secretary (receptionist for answering call), virtual office, bank account account opening arrangement and etc. Kindly contact us for more information!
Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours Shenzhen hotline：86-755-
36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my