China Q & A


1. What is a WFOE ?

Answer: A WFOE is wholly foreign-owned enterprise. It is a chinese limited liability company, wholly owned by one or foreign investors and establlshed entirely with foreign capital.

2. What is the structure of WFOE ?

Answer: The structure of WFOE includes director, shareholder, legal representative, general manager and supervisor. Except supervisor, director, shareholder, legal representative and general manager can be the same person (must be overseas persons).

3. How much is the share capital ? Do I need to invest the money to the WFOE ?

Answer: It depends upon the type of business activities. Generally, except special businesses, the capital is RMB100,000. The paid capital can only be RMB10,000 when registering a WFOE and start business.

4. What business activities are allowed to do using WFOE ?

Answer:Most busineses are allowed to do in China, special businesses are needed special approval and the capital may be high also. If you want to make sure whether your business is allowed to do in China, please send the aplication form to us, we will check for you before further process.

5. What are the procedures of registering a WFOE ?

Answer:Please see our website under the heading of China Company Setup again, you will have such details.

6. What are the fees of WFOE setup ?

Answer:Please email to us for a quote.

7. What documents are required ?

Answer:Please see our website under the heading of China Company Setup again, you will have such details.

8. How long does it take ?

Answer:Around 1 to 2 months.

9. What bank accounts can I allow to open ?

Answer:Basically, all the banks in China are avaiable to open. If you want to make sure what the bank can get opened, please send the aplication form to us, we will check for you before further process.

10. What are the procedure of opening a bank account in China ?

Answer:Please see our website under the heading of China Company Setup again, you will have such details.

11. What are the functions of the bank account in China ?

Answer: Basically, all the banks in China do provide general functions of the banking operations, like multi-currencies. and internet banking, and company debit. So you can operate your bank operations through internet and in your own country.

12. After formation, what documents you will give us ? or what I will get after company setup ?

Answer:After setup. you will have

i)Business License issued from State Administration of Industry and Commerce;

ii) Chops issued and made by Public Security Bureau;

iii) Organization Code License issued by Technical Supervision Bureau;

iv) Tax Certificate issued by Taxation Bureau;

v) Finanaicl Certificate License issued by State Administration of Foreign Exchange;

vi) Foreign currency and RMB bank account;

vii) Capital Vertification report issued by Chinese auditor;

viii) Statistics license registration;

xi) Import/Export license;

xii) VAT license

13. What is the VAT status of my new setup ?

Answer:After formation, your VAT status is Small-scale taxpayer status. For details, Please see our website under the heading of China Company Setup again, you will have such details.

14. Can I change to General Tax payer Status ? If so, how do I change ?

Answer:Yes, we can apply for you from Small-scale taxpayer status to General Tax payer Status.

15. What are the tax systems in China ?

Answer:Please see our website under the heading of China Company Setup again, you will have such details. You will know all the idea of tax systems in China.

16. What tax I need to pay in China ?

Answer:Please see our website under the heading of China Company Setup again, you will have such details. You will know what tax you need to pay in China.

17. What reporting requirements I need to follow in complying with Chinese Law ?

Answer: Please see our website under the heading of China Company Setup again, you will have such details. You will know what reporting requirement you need to follow.

18. Can I rent office in China then ?

Answer: Yes, sure.

19. Can I hire local employees or overseas employees ?

Answer: Yes, yes, sure. you can both hire local employees and or overseas employees.

20. Can I have my VAT refund ?

Answer: Yes, we can help.

21. How can I remit my money back to my own country ?

Answer: After you pay all the tax in China, you can apply for clearing out from China from relevant authorities. Once you get the clearing order, and then submit to the bank, the bank will do remittance order to pay your money from China to your destinated bank accounts outside China.

22. I cannot speak Mandarin. How you can help me ?

Answer: If you need help, we can arrange a translator and help you to finish all the formation issues, and other issues when you are in China.

23. I cannot read nor speak Chinese, so I cannot book hotel or do other arrangements in China.

Answer: If you need help. we can arrange our staff and meet you at the exit of Customs Office in China, and bring you to the hotel, and then come to our affiliate office in China, and go further process, certainly with the help by Translator.

24. Do you provide other supporting services after finiahing all Chinese registration procedure ?

Answer: Yes sure. It is why you look for us. We can arrange for you below:

a) Translation Services

b) Chinese Company check services

c) Arrangement of Virtual office in China

d) Hire local people in China

e) Arranement with Chinese Lawyer

25. Can you provide registration in other jurisdictions in additional to Szqh Shenzhen ?

Answer: Yes sure. But clients must understand that chinese registration process is very complicated, different jurisdictions will have additional special requirements too, and because of this, the costs will also be different. It is better to think that chinese registration process is regarded as a project, and not as an offshore registration process. Other jurisdictions in China may take up to 9 months to 12 months or even 2 or 3 to 5 years to complete depending upon the jurisdictions as well as the nature of business, and will cost you more than you expect. If clients say for example they need to register a transportation business in Beijing, we will use "Branch" process instead of stright forward registration in Beijing. The reasons are more likely:

the time is longer than expected as compare with other jurisdictions;

the fee is higher than expected as compare with other jurisdictions;

the injection capital is higher than with other jurisdictions;

the name has been used, and so it is no available to use again in Beijing;

the registration requirements are very strict and in long list as compare with other jurisdictions;

transportation licenses have issued a lot and it is no longer available to isue such license in Beijing.

Because of the above, we will use Branch process. First we wil register through Szqh Shenzhen Free Trade Zone. It takes around 1 to 2 months to complete. Once we get all licenses issued, we will go Branch registration in Beijing which takes within 1 week. Under the Branch licenses, clients can open bank accounts in Beijng, do business in Beijing, and register VAT also in Beijing, rent office in Beijng, as well as hire staff in Beijing. Everything will be the same as if you got first registration in Beijing, the difference is that the license you got is Branch license

26. Can you help us to get Business visa and stay in China

Answer: Yes, after the WFOE, we can help you and your appointed overseas partners or employees to get visa and stay in China.