Wholly Foreign Owned Enterprise ("WFOE")
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INTRODUCTION TO WFOE
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The Wholly Foreign Owned Enterprise (WFOE) is a Limited liability company wholly owned by the foreign investor(s). In China, WFOEs were originally conceived for encouraged manufacturing activities that were either export orientated or introduced advanced technology. However, with China's entry into the WTO, these conditions were gradually abolished and the WFOE is increasingly being used for service providers such as a variety of consulting and management services, software development and trading as well.
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4Z9I1P$R7EThe registered capital of a Wholly Foreign Owned Enterprise (WFOE) should be subscribed and contributed solely by foreign investor(s). A WFOE does not include branches established in China by foreign enterprises and other foreign economic organizations. The Chinese Laws on WFOE do not have a clear definition of the term of "branches". The term of "branches" should include both the branch companies engaged in operational activities and representative offices, which are generally not engaged in direct business activities. Therefore, branches and representative offices set up by foreign enterprises are not WFOE.
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DIFFERENT TYPES OF WFOE /y,h"y6{*G0t,N-s!X0Y
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Following are different types of WFOE. Commonly,
7k6a0E(D/f2Z#o!}[A Professional Business Forum](1) If the WFOE only be allowed to manufacture here. we can say it's manufacture WFOE.
9n.R$G$S-k"j;W$J-e.U'BFOB Business Forum(2) If the WFOE is allowed to do Consultancy & Service, we call them Consultancy Service WFOE.business forum,trade forum,business opportunity,Business China,Business India,Brazil business1]%Q:g(s%Z!@;[)A o$J6k
(3) If the WFOE is allowed to do Trading, Wholesale, Retail or Franchise in China, we call them Trading WFOE or FICE (Foreign-Invested Commercial Enterprise), you can check "FICE Registration" on FOB Business Forum for more information and details about FICE.
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ADVANTAGES OF WFOE
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The advantages of establishing a WFOE, compared with other types of enterprises, include, but not limited to:
%Y!@/G4Y"@FOB Business Forum(1) Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner;
8T6|5z,e&jbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil business(2) Ability to formally carry out business rather than just function as a representative office and being able to issue invoices to their customers in RMB and receive revenues in RMB; [A Professional Business Forum]-N$[(L:v&C-],F+k
(3) Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
+F*U8?/u e'C;^"`9Rwww.fobshanghai.com(4) Protection of intellectual know-how and technology;
)Z:Y;?;D3S,q*t"@9_.R*x:G1H[A Professional Business Forum](5) No requirement for Import / Export license for its own products;
2s6@1u6G&@9b'b7l$J[A Professional Business Forum](6) Full control of human resources www.fobshanghai.com1F*z-Q7x2{5e1h5k)v7c
(7) Greater efficiency in operations, management and future development.
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BUSINESS SCOPE
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One of the most important issues in WFOE application is business scope. Business scope needs to be defined and the WFOE can only conduct business within its approved business scope, which ultimately appears on the business license. Any amendments to the business scope require further application and approval. Inevitably, there is a negotiation with the approval authorities to approve as broad a business scope as is permitted. -F'N%M,s(P&U"Y-k#|:S
Generally business scope includes investment consulting, international economic consulting, trade information consulting, marketing and promotion consulting, corporate management consulting, technology consulting, manufacturing, etc.
$W1}'J8s6S!b$SWith China's entry into WTO, more and more business is open to WFOE especially in Trading, Wholesale and Retail business.
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5}"|$H9j-l0]business forum,trade forum,business opportunity,Business China,Business India,Brazil businessREGISTERED AND PAID UP CAPITAL
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3I9F2Q0|*L/e.W%V2uFOB Business ForumInvestment Captial: USD$140,000 is a good idea for all kind of WFOE, it's easy to get approved.FOB Business Forum,F.f5y8|&q;j'c0{
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GENERAL TAX INFORMATION !h1d#^3y5G)L.f8G%m6C
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The corporate tax rates range from15% to 31%, depending on the places where the company is registered. Shanghai is among the lowest in the region. All enterprises are required to report to the Tax Administration Department monthly. You are welcome to contact us for more information.-\6D/P*M,c%{
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ANNUAL RETURN
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Any limited companies in Shanghai should summit annual return to the relevant authorities. The annual cost is about USD300. Any company will be subject be to a fine if the Annual Return is not submitted in a timely manner.
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TERMS AND TERMINATIONFOB Business Forum.o9g)l3t+k&m1n

*c)R&A9I3g6Y-[1{[A Professional Business Forum]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. With special approval from the State Council, the term may be even longer than 50 years.www.fobshanghai.com"h9r$E$`;g(i#{'i
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The WFOE may be terminated under certain conditions. For example, the inability of the WFOE to operate due to heavy losses, or in the occurrence of an event of force majeure, etc.

Condition(s):-Y-T8i%X2_2@
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The minmium investment is 140,000 USD$, if you register in some trade zone, for example, Wai Gao Qiao, then the minmium investment is 65,000USD$ (20% in advance and the rest 80% should be ready within 2 years)FOB Business Forum2?6@2I!l(U%^!E7k#{,[
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Documents Required
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1C(I$A,I"J+Swww.fobshanghai.comThe documents required for setting up a WFOE are listed below:7}#G+V!T"R6]8x2i

01	Copy of Business License of parent foreign company which was certificated by Chinese Embassy (if it's personal investor, then passport copy certificated by Chinese Embassy is enough)
02	The lastest annual audit report from the parent foreign company. The audit report should be in the format as prepared by a Certified Public Accountant (CPA)
03	2 Credit letters from foreign company banker to declare a good credit within at least current 6 month
04	The resume, copy of the passport and 8 pieces of passport size photos of the Legal Representative of the WFOE
05	The parent company's legal representative's passport copy
06	Business scope and how long the WFOE is going to do business in China
07	Brief introduction of the foreign investor(s) including name, address and telephone number
08	Total investment and registered capital and the make up of investment
09	Registered address, leasing contract, certificate of real estate, and certificate for leasing ( We can provide free virtual address for the registration upon your request, no need to rent an office in advance)

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The above document is enough to register a Trading & Consulting WFOE, But if you want to register a Manufacture WFOE, you have to prepare following extra documents:

01	Purpose and estimated investment
02	WFOE's operational structure and number of employees
03	Permission for land use, environment evaluation report
04	Products, size of production, detailed list of equipment, and business plan
05	Environmental protection measures
06	Requirement for utilities such as power and water supply

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Registration Procedures
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Foreign companies are not allowed to directly submit the application documents to the relevant authority. They must retain a PRC entity that is authorized or permitted by relevant authorities to act as a sponsor. The sponsor will submit all the documents to the examination and approval authority on behalf of the foreign enterprise. Procedures to set up the Wholly Foreign Owned Enterprise in Shanghai are as following: FOB Business Forum;\$l8m J-_%e(y6O

01	Check and Register Company Name (about 3 days)
02	Apply for Approval Certificate (about 15-30 days)
03	Apply for Business License (about 15 days)
04	Apply for Organization Code License (about 1 day)
05	Register in Shanghai Tax Bureau (about 15 days)
06	Open a RMB bank account (about 3 days)
07	Register Foreign Currency Certificate (about 1 day)
08	Check the registered capital (about 5 days)
09	Obtain Import/Export license and VAT invoice (Optional, Only for Trading WFOE, about 1 month)
10	Register in the shanghai custom (Optional, Only for Trading WFOE, about 5 days)

Government Fee:
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Procedures	Government Fee(RMB)
Company name approval	80
Company approval	10
Company bulletin	4000
Company registration(base on USD$200,000 captial)	1333
Business IC card	280
Company Seal	500
Organization Code license	228
RMB currency a/c IC card	250
Foreign currency a/c IC card	250
Tax registration	100
Custom registration	175
Check captial(base on USD$200,000 captial)	3000
Statistical license	20
Finance license	20
Total:	10246RMB (~USD$1280)

5t*}.O3d(B6q5I'LDISCLAIMER: The official registration filing fees above are subject to change without notice. We get our information directly from the government. We do our best to keep our web site up to date. The accurate amount will be billed separately with supporting official receipt issued by the Chinese Government. www.fobshanghai.com$r#m"W7B ~+I
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Service Fee:
*Y8v%[8~)O:c8Zbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil businessConsulting WFOE Registration Service Fee: USD$1800
J6}'d#i0W0Ebusiness forum,trade forum,business opportunity,Business China,Business India,Brazil businessTrading WFOE Registration Service Fee: USD$2600
!p:i0_3[1]7o[A Professional Business Forum]Manufacture WFOE Registration Service Fee: USD$2600www.fobshanghai.com5X#{/o4^/W,_8S*C$W

;R"O6J,^'Y2C0Ibusiness forum,trade forum,business opportunity,Business China,Business India,Brazil businessPlease check with your service provider in details, the above price is only FYI.