DEFINE FOR WHOLE FOREIGN-OWNED ENTERPRISE
Foreign Invested Enterprise (FIE) or the Wholly Foreign Owned Enterprise (WFOE) is a corporation entity, wholly owned by the foreign investors including foreign company and foreign individual. WFOE 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 invoice and export goods from China, it must be able to be legally registered as local company or WFOE. WFOE is set up as limited liability entity and represents separate legal persons and tax according to local legislation
BASIC REQUIREMENTS FOR WFOE REGISTER
- WFOE Formation is subject to the local administrative permission to get foreign investment approval of the department. Plus, the special industries or circumstances shall be pursuant to the different provisions every year by the national ministry of commerce of the P.R.C.(please refer to the year of the ministry of commerce of the foreign investment industrial guidance catalogue and the corresponding provisions);
- No requirement for registered capital in company regulation, but in the end to the result of examination and approval shall prevail.
- Registered address
- Appoint one legal person and one supervisor
- The identity certificate or registration certificate of investors
- Bank reference letter
- Legal person and supervisor’s identification
- Register registration confirmation sheet
All industry's business scope is limited in China was very strict and precise. Foreign companies can only be allowed to conduct business activities within the business scope, this range will be marked on the business license. If you want to change, to apply for and obtain approval.
Consulting firm, for example, its scope of business includes: investment consulting, International economic consulting, marketing consulting, company management consulting, and technology consulting, and so on.
- Can apply Fapiao
- Can be directly recruit employees
- Can open a bank account for received and payment
Tax rates can vary somewhat depending on the location of the WFOE, but generally, products that WFOEs sells into China will be subject to business tax of about 3%-17% on all revenues in China; profits tax of 25%.
ONGOING MAINTENANCE AFTER SETUP
- Capital paid up and verification Report
- Bookkeeping & Tax Declare - monthly, quarterly and yearly
- Annual Return
- Audit Report on calendar yearly basis & Tax Filing - yearly