What Is The Capital Investment Needed For China WFOE Registration?
Capital investment was traditionally required to demonstrate that the WFOE, or WOFE as it is often called, would not run out of money before being able to break even.
In recent amendments to the foreign investment laws, perhaps in a bid to spur more investment by lowering the barrier to entry for foreign firms, the government has since removed the minimum capital investment requirement when incorporating a WFOE in the country.
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 30 years. The amount that you commit to will vary depending on the business that you're doing. While it may be more flexible, please note that you will need to commit to registering an appropriate amount of capital upon forming the WFOE (for instance, a factory will require more than a trading company).
How Does Hongda Business Services' WFOE Setup Process Work?
First we will describe the documents needed. Once we have these you can leave the process to Hongda.
So you can understand what we do on your behalf, we will also describe the different steps that we take in order to finally open your WFOE, and you can download a thorough WFOE checklist as a guide you can keep, too.
Documents Required For WFOE Setup
Gathering the documentary evidence needed to apply for a WFOE is difficult and time-consuming. Hongda will guide you through this every step of the way.
We will require, roughly, the following documents from you in order to open a WFOE (updated May 2020):
- Company director/s passport copies
- Legal representative's passport copy and details
- Company supervisor's passport copy and details
- Company office lease rental contract
- Chinese name of company (Hongda will assist with this)
- Business scope (Hongda will assist with this)
- Copies of overseas company registration documents (required if a company is the foreign investor)
WFOE setup takes around just 10 working days
The speed with which the process happens is dependent on 2 things:
- Speed and efficiency of collecting and completing the numerous documents required
- Good relationship with the relevant government offices
Hongda Business Services have been registering WFOEs since 2007, and have overseen hundreds up to now with a 100% success rate. Not only do our experts have a comprehensive knowledge about what is required in order to make the fastest WFOE application possible, but they also have a long-standing and strong relationship with the right government officials who will be checking your application and approving it.
This article also explains the potential cost of opening a WFOE.
Steps That Hongda Business Services Include In Opening Your WFOE
When cooperating with Hongda, here are the tasks that we undertake to make sure that your WFOE is opened quickly, correctly, and legally.
The following is included when opening a WFOE:
- Supply all government forms required
- Assist in filling them out correctly
- Name registration with State Administration of Industry and Commerce (SAIC)
- Assist in helping you find suitable business premises within your budget
- Apply to open a WFOE at the local Administration for Industry and Commerce for you, be that Shenzhen, Guangzhou or Shanghai
- Apply for business license
- Apply for the Organisation Code Certificate from the Technical Supervision Bureau (“TSB”)
- Assist in registering with the Shenzhen State Tax Bureau (“SSTB”) and Shenzhen Local Tax Bureau (“SLTB”) - or same for Guangzhou
- Assist in the creation of your Chinese company seal
- Register with local statistics bureau
- Help you to open a Chinese corporate bank account (foreign currency and CNY)
- Apply for authorization to print or purchase financial invoices (fapiao)
- Purchase uniform invoices
- Register with the local career service center (for staff hiring)
- Register with Social Welfare Insurance Center
Following the successful application, we will return all of the documents and seal to you and then your China WFOE will be open for business. After establishment of the WFOE, all of the above tasks not yet undertaken must be completed within 30 days, and Hongda always endeavour to complete them well before that time.
Additional Services For WFOEs
Hongda Business Services also offer the following services to streamline WFOEs which are already incorporated or will be soon:
- Help you to open a Chinese corporate bank account (foreign currency and CNY)
Please hit the button below to discuss setting up your WFOE and about any of these additional services too.
