China Company formation
818HI team can assist our clients in establishing wholly owned foreign enterprises (WFOE) in the the following Chinese cities: Shenzhen, Guangzhou and Shanghai. Steps on establishing a WFOE using Shenzhen, as an example, are listed below:
1. Steps for the establishment of a WFOE within China
(i)Office Space leasing
To begin with, the interested party must enter into a tenure agreement in regards to the space the WFOE is to use for a period of at least 12 months.
(ii)Member/shareholder’s identity documents validation
The interested party should make an arrangement for his or her identity documents to be validated by the Chinese Embassy wherein the member/shareholder resides or is registered. Should the interested party be a corporation, it is the incorporation documents which will be required for validation. In cases where the interested party is an individual, an identity card, home return permit (for Hong Kong residents) and a passport (for foreigners) will be needed for validation.
(iii) A Reference Letter from a Banker
The interested party should make an arrangement with his or her banker to be issued with a reference letter. This letter is one of the documents which are submitted when registration needs to be done.
The interested party should prepare other documents such as photocopies of identity cards, home returning tickets or passports (whichever applicable) of the General Manager, Legal Representative, Supervisor and directors.
1.2 Needed Materials and Documents
Before an applicant can submit his or her application for registration, the following materials and documents should be submitted:
(1) Legalized original identity documents (two sets) that have the names of members/shareholders whom are included within the WFOE.
(2) Original office lease agreement documents (one set) which indicate the premises which the WFOE will be occupying. It must be noted that this agreement should registered by the local estate leasing administration authority and must be signed by the legal representative or by the investor whom the WFOE proposes. A lease term of not less than 12 months and the premises to be occupied by the office should be clearly indicated by the agreement. They should be for office use only.
(3) An original banker’s reference letter (Credit Standing Certificate) issued to the interested party for a period not exceeding 6 months prior to the application. The party’s account name, account balance (which should not be lower than 60 % of the WFOE’s registered capital) and name should be indicated by the certificate.
(4) A copy of the previous financial year’s audited finance statement should be provided as a verification that the business has been in operation for more than one year.
(5) For a corporate investor, the nationality and name of the managing director or the position, nationality and the name of the legal representative of the investment should be provided.
(6) The proposed WFOE’s Chinese name should be provided.
(7) The proposed business’ scope and scale summary should be provided.
(8) The WFOE’s total amount of investment inclusive of:
(a) Its registered capital with the least capital being RMB500.000.
(b) Strategy and time limit for capital contribution. Can be done in two ways: one is by remitting 15 % of the registered capital after acquiring the business license for 3 months and the rest within 2 years
And the other is by remitting the entire amount after acquiring the business license within 6 months.
(9) The residential address (es) of the director (s) and a photocopy of identity document (s) such as passports for foreigners.
(10) The residential address (es) of the supervisor (s) and a photocopy of identity document (s) such as an identity card.
(11) The residential address, one picture and an identity card (a copy which will be verified by an original later) of the legal representative.