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Dongguan Company Registration (WFOE)

Updated:2018-4-3 15:50:56    Source:www.tannet-group.comViews:447

Dongguan Company Registration (WFOE) is really a good choice for foreigners who want to setup businesses in China. Dongguan is a prefecture-level city in central Guangdong province, China. It is an important industrial and manufacturing base in China. The annual foreign trade volume of Dongguan ranks only behind Shanghai, Shenzhen and Suzhou among Chinese cities. There are about 8,000 domestic and 14,000 foreign-funded companies in Dongguan, covering various sectors including electronics, clothing, communications and food.

Dongguan is the largest global manufacturing and supplying base of computer parts and peripheries. Most of the PC components can be easily found and purchased there, making it an important purchasing base for PC giants including IBM, HP and Dell. WFOE stands for wholly foreign owned enterprise, which is a limited liability company wholly owned by either a foreign legal entity or a foreign natural person. It is the vehicle of choice for most people and companies doing business in China.

Requirement on Registered Capital
No minimum registered capital is required for WFOEs with scope of business of consulting, trading, retailing, information technology etc. in China. There are minimum registered capital still required for some industries for instance: Banking, Forwarding etc. Since China still maintains foreign currency control policy, it's still advisable to choose registered capital within RMB 100,000 - RMB 500,000 as the minimum registered capital. Companies can now determine how much capital will be required to maintain their operations and must simply ensure that they meet those targets within a period of 10 years.

Advantages of WFOE in Dongguan
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.

Registration process for Dongguan WFOE Registration
The application process to create a company in China generally takes three to six months. The establishment process varies based on the WFOE form and the planned business scope. For example, a Manufacturing WFOE will require an environmental evaluation report, and Trading WFOEs will need to undergo customs/commodity inspection registration. The application process can be divided into two parts:
• Pre-registration – what happens before the company formally exists;
• Post-registration – what happens after the company formally exists.

Tannet will manage all aspects of incorporation to get you a business license in Dongguan China. We offer a range of company formation services including helping you to set up:
- Wholly Foreign Owned Enterprises (WFOE );
- Representative Offices;
- Joint Ventures (Equity/Co-operative);
- Foreign Invested Partnership Enterprises (FIPE).

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 86-755-82143422, 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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