Malaysia
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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 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.
Yiwu Wholly Foreign Owned Enterprise registration -Advantages of WFOE
in Yiwu
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.
Yiwu Wholly Foreign Owned Enterprise registration -Application
Documents for WFOE in Yiwu invested by company
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
of WFOE.
11. A copy of the stub of
corporate certificate of approval
Yiwu Wholly Foreign Owned Enterprise registration -Application
Documents for WFOE in Yiwu invested by individual
1. Investors’ copy of passports
(usually with the permission chop from the government department and China
embssay.)
2. Two original bank credibility
letters for the foreign investors, stating 7-digits bank balances, issued
within 6 months in both English and Chinese language.
3. 2 photos of the legal person of
WFOE.
4. An original copy of leasing
agreement with chop of the Housing Department.
Yiwu Wholly Foreign Owned Enterprise registration -General Procedures
and Estimated Time Frame
1. WFOE company name reservation-1
work day
2. Certificate of Approval
Application-7 work days
3. Business License
Registration-5-7 work days
4. Application and engraving of
Company stamps-1work day
5. Organization Code License
Application-1 work day
6. State Tax Registration-1 work
day
7. Local Tax Registration-1 work
day
8. Foreign Exchange Registration-1
work day
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 work days
Total Time required-7~8 weeks
Yiwu Wholly Foreign Owned Enterprise registration -Taxation of WFOE in
Yiwu
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 in come instances
withholding tax and VAT may be applicable.
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 expand business overseas. We offer 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
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