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WFOE (wholly foreign owned enterprise) is a business entity
formed in China entirely with foreign capital. It is totally under foreign
control and does not have any formal Chinese ownership participation. For a
foreign company to be able to issue receipts and export goods from China, it
must be able to legally registered as a local company or a WFOE. A WFOE is set
up as limited liability entity and represents separate legal persons and is
taxed according to local legislation.
Shenzhen WFOE
Registration-Advantages of WFOE in Shenzhen
1. Independence and freedom to implement the worldwide
strategies of its parent company without having to consider the involvement of
the Chinese partner;
2. Ability to formally carry on business rather than just a
representative office function;
3. Issue invoices to their customers in RMB and receive RMB
revenues. Convert RMB profits to US dollars for remittance to their parent
company outside.
4. Cheap labor, which can lower your cost;
5. Not required to share profits with Chinese counterpart;
6. Greater efficiency in its operations, management and
future development.
Shenzhen WFOE
Registration-Application Documents for WFOE in Shenzhen
1. A project proposal and feasibility study report (in print
and under the company seal);
2. Original copies of the application paper and the
resolution by the Chairman of the Board of the foreign investor (in printed
form signed by members of the Board and with company chop);
3. Copies of the business licenses of certificates of
incorporation of the foreign investor (usually with the permission chop from
the government department.)
4. An original copy of leasing agreement with chop of the
Housing Department.
5. Directors name list of board or management.
6. An original copy of the corporate ratification paper (2
copies in duplicate).
7. Two original bank credibility letters for the foreign
investors, stating 7-digits bank balances, issued within 6 months in both
English and Chinese language.
8. A copy of the approval paper for corporate formation and
other papers for company alterations (the original are required for check-up).
9. Notice of enterprise's name confirmation appraised by the
Industry & Commerce Administrative Bureau.
10. 2 photos of the legal person and monitor of WFOE.
11. A copy of the stub of corporate certificate of approval.
Shenzhen WFOE
Registration-General Procedures and Estimated Time Frame
1. WFOE company name reservation-3 work days
2. Certificate of Approval Application-15 work days
3. Business License Registration-3-5 work days
4. Application and engraving of Company stamps-1work day
5. Organization Code License Application-1 work day
6. National Tax Registration certificate-1 work day
7. Local Tax Registration certificate-1 work day
8. Foreign Exchange Registration-5 work days
9. Bank account opening-10 work days
10. Financial Registration for WFOE-3 work days
11. Registration with local Customs-3 work days
12. Registration with China E-Port-3-5 work days
Total Time required 45-60 workdays, however, consulting or
service company is not required to be registered with local customs and China
E-port .
From 2015, Shenzhen government has integrated the
organization code license and tax certificate and business registration license
into one license, the procedures has been greatly simplified. The whole process
will only take around 25-35 workdays.
Shenzhen WFOE Registration-Taxation
of WFOE in Shenzhen
Tax rates can vary somewhat depending on the location of the
WFOE, but generally, WFOEs selling into Shenzhen will be subject to business
tax of about 5% on all revenues in Shenzhen; profits tax of 15-33% depending on
location and income instances withholding tax and VAT may be applicable. VAT
tax-payer is usually applied by the trading registered in Shenzhen.
Tannet Group Limited have over 10 branches located in China and could provide one stop business services to those who interested to venture into China. As China company required to file VAT and business tax each month, Tannet could assist on outsource China Company accounting and taxation included commercial secretarial services as well. Kindly contact us for more information on our services!
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