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Shanghai Corporate Formation (WFOE)

Updated:2018-3-28 17:21:16    Source:www.tannet-group.comViews:1189

Shanghai WFOE Registration
Shanghai Tannet Hotline: 021- 68877368 

Shanghai Corporate Formation (WFOE), namely, the Wholly Foreign Owned Enterprise (WFOE or WOFE), is a Limited liability company wholly owned by the foreign investor(s). In China, WFOEs were originally conceived for encouraged manufacturing activities that were either export orientated or introduced advanced technology.

Shanghai is China's largest economic center and trade port, the largest comprehensive industrial city, the country's major science and technology center, trade center, financial and information center, which attracts nomourous investors’ attention.

Characteristics of a WFOE
Wholly Foreign Owned Enterprise (WFOE), also known as Wholly Owned Foreign Enterprise (WOFE), is a limited liability company, the establishment of which is governed both by the Company Law of PRC and Law of the PRC on Enterprises Operating Exclusively with Foreign Capital.

A WFOE can engage itself in approved business activities and issue tax invoices on its own. It is a corporation and a tax resident. All shareholders of WFOE should not be Chinese nationals.

Advantages of WFOE
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 out business rather than just function as a representative office and being able to issue invoices to customers in RMB and receive revenues in RMB;
3. Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
4. Protection of intellectual know-how and technology;
5. Full control of human resources;
6. Greater efficiency in operations, management and future development.

Business Scope
One of the most important issues in WFOE application is business scope. Business scope needs to be defined and the WFOE can only conduct business within its approved business scope, which ultimately appears on the business license. Any amendments to the business scope require further application and approval. Inevitably, there is a negotiation with the approval authorities to approve as broad a business scope as is permitted. Generally business scope includes investment consulting, international economic consulting, trade information consulting, marketing and promotion consulting, corporate management consulting, technology consulting, manufacturing, etc. With China's entry into WTO, more and more business is open to WFOE especially in Trading, Wholesale and Retail business.

Materials for Shanghai WFOE registration are as follows:
Investing as a foreign corporate:
(1) 3 company Chinese names at least;
(2) 2 original Notarization of the business license or certificate of incorporation of the parent company(It should be notarized by domestic notarization Department and endorsed by local China Embassy);
(3) 1 original bank reference letter(It is opened from investor's bank, the deposit money is not less than the registered capital in China, issued within 6 months in both English and Chinese version);
(4) Recent 1 year Audit report from foreign investing company;
(5) Registered capital, investment ratio, and business scope;
(6) Photocopies of Corporate and supervisors’ identity materials, (if a board of directors, please provide copies of board membership);
(7) Articles of associations and Feasibility Study Report (Tannet provides with standard template);
(8) A set of documents require for investors and Shanghai legal representative’s signatures (Tannet provides);
(9)House Rent.

Investing as natural persons
(1) 3 company names at least;
(2) Providing investors’passport (It should be notarized by domestic notarization Department and endorsed by local China Embassy);
(3) 1 original bank reference letter (It is opened from investor's bank, the deposit money is not less than the registered capital in China, issued within 6 months in both English and Chinese version);
(4)Registered capital, investment ratio, and business scope;
(5)Photocopies of leagal person and supervisors’ identity materials,
(6) Articles of associations and Feasibility Study Report (Tannet provides with standard template);
(7) A set of documents require for investors and Shanghai legal representative’s signatures (Tannet provides);
(8) Contract of rent.

Contact Us
For further queries, please do not hesitate to contact Tannet at anytime by calling Shanghai Hotline: 021-68877368,  18101640557 
Fax:58402186
E-Mail: hkcfm_shanghai@163.com
Address: Block F, 15th Floor, World Plaza, No.855 South Pudong Road, Pudong New Area, Shanghai

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