PRACTICE AREAS Corporate Corperate / Company Start a Business in Shenzhen - WFOE, RO or Foreign Owned Trading Comany
Corperate
Sunday, 04 August 2013 01:39
From 2002, as experienced shenzhen lawyer providing service to foreign nationals and foreign businesses, we have been helping clients start WFOE and other business types. And till now, we have provided the WFOE registration related services for thousands of enterprises and follow-up accounting,taxation and other related one-stop solutions.We also advise clients over startup of representative office, foreign owned trading company in Shenzhen.
Foreign Enterprise Registration Services Include:
Name Authorization、Application for Foreign Economy &trade Committee、name check 、Foreign Economy &trade Committee item application、commerce register、Code register、Foreign exchange check、capital account setup、capital audit deputy、tax register、financial register、CIQ register、statistic register、import and export rights license、 Food circulation license .
Business Types in China Introduction:
Before starting up a business in China, to know the company types is very necessary. Foreign Investors generally establish a business in China in one of five types: Wholly Foreign Owned Enterprise (WFOE); Representative Office; Joint Venture, Partnership Enterprise (PE)and Hong Kong company,for more details, please check Business Comparison Chart.
| Business Comparison Chart | ||||
| ITEMS | WFOE/ JOINT VENTURE | REPRESENTATIVE OFFICE | HONG KONG COMPANY | PARTNERSHIP ENTERPRISE |
| Minimum Capital | Start from 100K RMB |
Not capital required | 1 HKD | No minium capital required |
| Business Scope | Specific Industry: Trading WFOE, Consulting WFOE, Manufacturing WFOE | Liaision; Quality Control; Promotion; Visit |
All business activities offshore; General Trading | Specific Industry according to Foreign Investment Industrial Guidance |
| Office | In an office building which could register business | Shanghai: Grade A building; Beijing: office building | Virtual address in HK | In an office building which could register business and registration type |
| Working Visa | 1 year multi-entry Visa | 1 year multi-entry Visa | Couldn't have work visa in China and HK | 1 year multi-entry Visa |
| Recruiting | Recruiting staff directly | Through Local HR agency: FESCO,Elitestage | Can't recruit staff in China | Recruiting staff directly |
| Taxation | Turnover tax; Income tax, Dividend tax | Expenses; individual income tax | Corporate Income tax: 16.5%. No dividend tax | Turnover tax; individual Income tax, Dividend tax |
| Maintenance | Monthly; Quarterly; Annually | Monthly; Quarterly; Annually | Annual: License renew; audit report | Monthly; Annually |
| Bank Account | Access & receive money; pay bill; issue cheque; withdraw cash in China; RMB account and Foreign Currency | Could only receive money from parent company; Could only pay for expenses; Can't pay for products | Online banking; Withdraw cash in HK; Withdraw cash with debit card in China if applicable | Access & receive money; pay bill; issue cheque; withdraw cash in China; RMB account and Foreign Currency |
| Invoicing | Official invoice in China | Can't issue invoice or receipt | Customized A4 size receipt | Official invoice in China |
| Receiving payments | World Wide | Not allowed to receive payments from clients | World Wide | World Wide |
| Liability of equity participants | Limited to amount of registered capital | Parent company. Parent Company must be established over 2 years | Limited to amount of equity participation | Unlimited liability or limited liability in an limited partnership enterprise |
Always consult our China company formation lawyers when you are going to start a business in China. Let the lawyers to do it in a professional way and you won't get it mess up.
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