Malaysia Hotline: +603- 2141 8908
The
Wholly Foreign Owned Enterprise (WFOE or WOFE) is a Limited liability company
wholly owned by the foreign investor(s). In China, WFOEs are originally
conceived for encouraged manufacturing activities that are either export
orientated or introduced advanced technology.
Articles
of Association
Articles
of Association are Company Rules in China and they will mention exactly how the
WFOE can operate, the official version of Articles of Association must be in
Chinese. Check the full English version that WFOE.
Business
Scope
According
to WFOE regulations, "Foreign investors are permitted to setting up a 100%
foreign owned enterprise in industries that are conducive to the development of
China’s economic benefits, and not prohibited or restricted by China
government.
Registered
and Paid up Capital
Registered
Capital: USD$140,000 is a good idea for all kinds of WFOE, with USD$ 140,000
investment it's easy to get approved. Initial Paid-up would be 20% of the
registered capital, the balance should be remitted within 2 years.
Office
address of WFOE [Very important]
Before
submit the application forms of forming a WFOE in China, the foreign investor
must rent a plant (manufacturing WFOE) or an office in advance (ridiculous? ),
the office of WFOE can't be in a residence building nor residence and commerce
(R&C) combined building.
Choosing
WFOE Company Name
Choosing
the business name. The official company name of a WFOE in China should be in
Chinese. The Chinese name should be formatted as: first word -company
name/product (For instance: MCK; second word: activity (For instance: business
consulting); third word: location/name of city (For instance: Shanghai,
Beijing); fourth word - company structure.
Business
License
Business
license [WFOE business license: sample]is the key offical document of the WFOE
(like Certificate of Incorporation in Other countries).
General
Tax Information
Since
Jan. 1, 2008, China's new corporate income tax [-Corporate Income Tax Law-]
(193 KB) rates begins with 25% although some industries still enjoy a lower
rate which is15%, the rate depends on the places where the company is
registered and the industry that a company engaged.
Annual
Audit Report
Any
limited companies in China should summit annual audit reports to the relevant
authorities. The audit reports are including: balance sheets and income
statements for their annual Chinese audit.
Profit
Repatriation
China Government
allows Foreign Invested Enterprises remit their profits out of the country and
such remittances do not require the prior approval of the State Administration
of Foreign Exchange (SAFE). Dividends cannot be distributed and repatriated to
oversea if the losses of previous years have not been covered while dividends
not distributed in previous years may be distributed together with those of the
current year.
Terms
and Termination
In
China, terms of 15 to 30 years are typical for a manufacturing WFOE (although
some may have a longer term). It is also possible to obtain extensions of the
WFOE's duration. For projects in which the amount of investment is large, or
the construction period is long and the return on investment low, projects
producing sophisticated products using advanced or key technology provided by
the foreign partner, or for projects producing internationally competitive
products, the term of WFOE may be extended to 50 years.
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com