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Shenzhen Company Formation (WFOE)

Updated:2018-7-24 16:05:24    Source:www.tannet-group.comViews:383

Shenzhen Company Formation (WFOE) Service
Hotline: 86-755-82143512, Email:tannet-solution@hotmail.com

Shenzhen company formation (WFOE) is also called Shenzhen business setup (WFOE), Shenzhen company registration (WFOE), Shenzhen business incorporation (WFOE) and Shenzhen company establishment (WFOE).

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.

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.

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 of WFOE;
11. A copy of the stub of corporate certificate of approval.

General Procedures for Shenzhen Company Formation (WFOE)
1. WFOE company name reservation;
2. Certificate of Approval Application;
3. Business License Registration;
4. Application and engraving of Company stamps;
5. Organization Code License Application;
6. State Tax Registration;
7. Local Tax Registration;
8. Foreign Exchange Registration;
9. Bank account opening;
10. Financial Registration for WFOE;
11. Registration with local Customs;
12. Registration with China E-Port.

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 in come instances withholding tax and VAT may be applicable.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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