If you want to invest in China, you don't just turn to the relevant government departments for so many certificates and formalities, but turn to TANNET. At TANNET we don't just give you tailor-made service for your need, but for your satisfaction. TANNET— serving the world of business, professional and worldwide.
1. OVERVIEW OF CHINA
China, with a population of over 1.3 billion and a land area of 9.6 million km2 , has a potential market for business development. China’s GDP increases by double digits in the past few years, since the strong economic development enhanced by foreign demand and domestic consumption. Now more and more investors rush to China for business setup and market share in form of WFOE or joint venture, owing to China’s market, labor and policy advantages.
2. THE CONCEPT OF WFOE
WFOE stands for wholly foreign owned enterprise, which is a Limited liability company wholly owned by the foreign investor(s). WFOE means the foreign investors(including Hong Kong, Macau, Taiwan) established the enterprise within Chinese territory, in accordance with 《PRC Wholly Foreign founded Enterprise Law》, with capital provided solely by the foreign investor. The foreign investors refer to the foreign enterprise, individual or partner. (Including Hong Kong, Macau and Taiwan).
In China, WFOE 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.
3. COMPANY NAME
In China, only Chinese company names are officially used, while English company names for reference only. NOT every name will be accepted by the Company Registry. For some sectors such as education, logistics, medicine and food industries, pre-approval special license is needed, it is important for you to know the wording of a company name should be in conformity with the registered capital and business activities, such as with the words "international" or "investment" or "industrial" within a company name.
The registered capital should be more than RMB 10 millions, while "group'' or "holding" more than RMB 30 and 50 millions accordingly.(The detailed information depends on the local stipulation) Your company name must be distinguished from the others registered name before. If the word “china” within the company name, must do pre-approval by CICB at national level in Beijing.
4. SHAREHOLDER, DIRECTOR, SUPERVISOR AND LEGAL REPRESENTATIIVE
A shareholder could be foreign company or individual.
A director could be acted by foreign person or Chinese person.
A monitor should be appointed to supervise the company’s operation and management. A monitor could be acted by foreign person or Chinese person.
Legal Representative is a person in charge of corporate operation and management and development, responsible for all the legal affairs arising from the business running.
5. BUSINESS SCOPE
One of the most important issues covered in the project documentation is the business scope of the WFOE. Business scope is narrowly defined for all businesses in China and the WFOE can only conduct business within its approved business scope on the business license. Amending the business scope requires further application and approval from if it is not available. General business scope usually includes, investment consulting, international economic consulting, trade information consulting, marketing and promotion consulting, corporate management consulting, science and technology , manufacturing, etc.
6. REGISTERED AND PAID-UP CAPITALS
For the trading enterprises, the registered capitals are usually required as much as RMB 500,000 or above; (the lowest capital is RMB 30,000) ;For the manufacturing enterprise, the registered capitals are usually required RMB 1 million or above; For the service sectors, such as consultancy, technology, market research and development, the registered capitals are usually required RMB100,000,000 or above; All of the registered capital can be paid in one time; (within 6 months after the date of the issuance of the Company's business license) and can also be paid for many times in two years. In the first 3 months, 15% of the registered capital is mandatory. The terms of payment is determined by the volume of registered capital. The capital examination fees will be reduced if the registered capital can be paid in one time.
7. PREFERENTIAL POLICIES FOR WFOE in CHINA
Most of the preferential policies have been abolished since January 1, 2008, but for some sectors preferential policies still remain there, such as hi-tech or environmental protection sectors.
8. TANNET SERVICE PROCEDURE:
Step1: Fill in the application form (sign the agreement);
Step2: Confirm the company name;
Step3: Pay for the service;
Step4: Submit the needed documents;
Step5: Check the documents;
Step6: Prepare for the statutory documents.
Step7: Let the investors sign the documents personally;
Step8: Submit all the documents to the government
Step9: Keep our clients informed of processing.
Step10: Finish processing in 20-35 working days;
Step11: Inform the customer to take the documents
Step12: Sign the receipt.
9. GORVERNMENT PROCESSING PROCEDURE
Step 1: Check the company name with local CICB (Company Registry)
Step 2: Achieving an approval from the Fire and Environment Bureau for manufacturing sector
Step 3: Pre-approval for some special sectors
Step 4: Go to Bureau of Trade and Industry for certificate of approval
Step 5: Apply for the business license from CICB
Step 6: Apply for chops from the Public Security Bureau;
Step 7: Apply for the Organization Code License from Bureau of Quality and Technical Supervision;
Step 8: Apply for the registration licenses from National & Local Administration of Taxation;
Step 9: Apply for the permits for the bank account opening from bank authorities;
Step10: Apply for Foreign exchange registration license from National Administration of Foreign Exchange
Step11: Open the basic account in the bank;
Step12: Apply for the IMPORT&EXPORT registration license from local Customs (if needed);
Step13: Apply for Financial Registration For Enterprises With Foreign Investment from Financial Department
10. DOCUMENTS REQUIRED FOR THE TRADING ENTERPRISES
Step 1: Minutes or resolution from investors board of directors
Step 2: One proposed name (in Chinese), and provide two alternative names in case the first name is not available.
Step 3: Detailed information about the business scope and registered capital;
Step 4: Feasibility study report;
Step 5: Four original articles of association signed by members of the Board and with company chop;
Step 6: Copy of the business license, certificate of incorporation of parent company;
Step 7: The original and copy of identity certification of legal representative, and two color photos;
Step 8: Two original bank reference letters (from investor's bank) indicating foreign investors' creditability, issued within 6 months in both English and Chinese translation;
Step 9: Lawyer's legalization or notarization and endorsed by local China Embassy or Consulate
Step 10: The lease of commercial office between leaser and lessee needed to be endorsed by the Housing Management Authority. The lease should be signed personally by shareholders, directors and legal representative.
11. DOCUMENTS REQUIRED FOR THE MANUFACTURING ENTERPRISES
Step 1 - Step 9 the same as above
Step 10: Production address: your own house property or the rented commercial workshop (two original copies of lease with signature and endorsed by Housing Management Authority. The signing party of lessee should be qualified for and on behalf of WFOE, such as its legal representative; shareholder, director or supervisor. The area is required no less than 200m2 and for manufacturing use only.
Step 11: Project reports are necessary for the approval by the relevant government department, such as business service, environmental and fire departments. The manufacturing area should reach the required standard set out by the Fire Department and Environmental Protection Department
12. DOCUMENTS REQUIRED FOR THE FOREIGN INDIVIDUALS’ ENTERPRISES
Step 1: Chinese company's Legal representative, directors, supervisor and manager's holding post original document &the copy of identity certification;
Step 2: Lawyer's identity notarization;
(Notarized by the local notarization department and approved by the Chinese embassy or consulate in their country)
Step 3: Two color photos of the legal representative;
Step 4: Feasibility study report;
Step 5: Original articles of association signed by members of the Board and with company chop;
Step 6: Two original bank reference letters (from investor's bank) indicating foreign investors' creditability, issued within 6 months in both English and Chinese language.
13. OUR SERVICES
TANNET provides one-stop tailored-made services for foreign companies which would like to set up WFOE in China.
7 copies of Approval document; 2 copies of original articles of association signed by members of the Board and with company chop; 2 copies of foreign invest enterprise approval license; Both original and duplicate copy of business license; 4 chops for different use; Seal carving registration card; Bank account documents; .Both original and duplicate copy of Organization Code License & card; Registration license and form of National &Local Administration of Taxation; Foreign exchange registration license and approval certificate; Customs declaration registration certification; Finance registration license and form.
14. FOLLOW-UP
TANNET can provide a series of follow-up services to customers, such as bank account opening, bookkeeping, auditing, monthly tax return and tax layout, annual return services, financial planning and China market study, Other services include domain name registration, webpage design, website promotion, China trademark registration.
15. DURATION
For manufacturing enterprise: it takes 20-35 working days to finish the processing before we get required documents ready, esp. the approval papers from the fire & environmental protection bureau.
For the trading and service enterprise: it takes 20-30 working days to finish the processing before we get required documents ready,
16. CONTACT US
For further queries, you are welcome to visit Tannet website www.tannet.net.cn or email to atahk@21cn.net / tannet-solution@hotmail.com or contact any of the following branches, thank you.
HONGKONG TEL:852-27826888 SHENZHEN TEL:86-755-82143181
BEIJING TEL:86-10-58674409 SHANGHAI TEL: 86-21-58763186
GUANGZHOU TEL:86-20-87550061 YIWU TEL: 86-579-85206707
CHENGDU TEL: 86-28-86676605 QUANZHOU TEL:86-595-22515909
XIAMEN: 86-592-2280281
Tannet——Global Corporate Solution Provider; Value Investment & Strategic Development.
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