How do I set up a WOFE in China?

How much does it cost to set up a WFOE in China?

Typically, setting up a WFOE in China with this type of firm will cost around RMB10-20,000. Unlike large international firms, these companies care about and need your business, and so are likely to make a great effort to please clients at every turn.

How do I start a WFOE in China?

These are the steps you’ll need to go through to set up your WFOE:

  1. Identify your parent company. …
  2. Obtain approval for the Chinese company name. …
  3. Prepare the legal documents you will submit during the business registration. …
  4. The actual WFOE company registration. …
  5. Tax registration.

How do I start a subsidiary in China?

WFOEs are the most popular business structure for US companies looking to establish a Chinese subsidiary. To set up a WFOE, you’ll need to prepare all legal documents — including articles of incorporation, audit reports, and letters of authorization — open bank accounts in China, and find a legal representative.

How long does it take to set up a WOFE in China?

Setting up a WFOE takes 2 to 3 months. We’ll need to prepare all incorporation documents, open your Chinese corporate bank accounts, and assign a legal representative.

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Can a foreigner start a business in China?

Can Foreigners Own Companies In China? The answer is, “yes.” They can own companies by incorporating them in China. For example, a foreigner can incorporate a wholly foreign-owned enterprise (WFOE), open a joint venture, or start a representative office.

What is a Chinese WFOE?

The most popular entity for doing business in China is the Wholly Foreign Owned Enterprise (WFOE), which is a company established in China according to Chinese laws and wholly owned by one or more foreign investors. … This should cover initial investment expenses and may be used immediately for the company’s operations.

What is ICP license China?

ICP licenses are issued by the Chinese government to China-based websites and allow licensees to host websites on servers in mainland China. … China requires a commercial ICP license for websites that generate income from online sales or advertising, in addition to websites that permit payment transactions.

What is foreign funded enterprise?

A foreign invested enterprise (FIE) is a business form which allows an enterprise to invest financially in a business or project in a foreign jurisdiction. This particular business form is most commonly used when doing business in China, but it is also used in other jurisdictions, especially in Asia.

What is a foreign invested company?

A foreign invested enterprise (FIE) is a legal structure under which a company can participate in a foreign economy. The term, “foreign invested enterprise (FIE)” primarily relates to operating in Asian countries, mainly China.

Can a foreigner own shares in a Chinese company?

Buying stocks directly in a foreign market like India or China is possible, although it might be harder than purchasing domestic shares. … China A-shares are open to foreign investors. Mutual funds and ETFs are less risky ways to gain exposure to foreign markets.

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What does Co Ltd mean in China?

In China, the limited liability company (LLC; in Chinese, 有限责任公司 or 有限公司) structure is generally for smaller and less restricted companies. … A transfer of a company shares between shareholders can be done without any restrictions.

How do I open a branch in China?

PRC law requires a formal registration procedure for opening a branch office. It usually takes at least two months to set up a branch office. And, if the company needs an increased capital for setting up the BO, the added time for the sub-sequential registration process should be taken into account.

What is QFII in China?

Qualified Foreign Institutional Investor (QFII) and RMB Qualified Foreign Institutional Investor (RQFII) are the quota/approval-based inbound investment programmes launched by the Chinese government in 2002 and 2011 respectively.

What is a VIE China?

Technically, the VIE refers only to a Chinese entity owned by Chinese individuals or entities without foreign investment or foreign equity ownership (the operating company). … Typically, the control company is established by the founders of the operating company.