Step 1. Restriction on Services:
-A WFOE can only conduct its business within its approved Business Scope. Business Scope of a service orientated WFOE includes:
a. investment consulting
b. international economic consulting
c. trade information consulting
d. marketing and promotion consulting
e. corporate management
f. technology consulting
Step 2. Name Approval Required
-As the application of pre-approval takes time, it is suggested that several Chinese names are chosen
-An English name for the enterprise is viewed by the authorities as a reference only and there is no need for registration if such
-Possible to reserve the name for a proposed WFOE for a maximum of six months.
Step 3. Authorized and Paid up Capital (Registered Capital)
-Minimum Registered Capital for a WFOE is RMB$30,000
-WFOE concerned with the provision of services is RMB$100,000
-Money must be deposited into a specified bank account(Capital Account) of the WFOE
-Contributions must be verified by a certified public accountant from China
Step 4. Shareholders
-A minimum of one shareholder is required.
-A minimum of one shareholder is required.
Step 5. Directors/ Board of Directors & Board Meeting
-There can be one or more directors appointed.
-Directors must be natural persons of any nationality but need not be riding in China.
-The Board of Directors of a WFOE must consist of a minimum of three members or a maximum of thirteen.
Step 6. Legal Representative
-A WFOE required t appoint a Legal Representative.
-The Legal Representative can be of any nationality and does not have to be a resident in China.
Step 7. Supervisor/Board Supervisiors
-A WFOE is required to appoint at least one Supervisor.
-The supervisor can be of any nationality and be a resident anywhere.
Step 8. Registered Office/Business Address
-A WFOE must maintain a business address in China.
-The office premises must be in a commercial building with a minimum of 12 months lease in force at the time of application.
Step 9. Tax Fillings
-A trading WFOE must required to file monthly Business Tax Returns and Income Tax Returns.
Step 10. Annual Reporting
-A WFOE is required to submit its Annual Audited Financial Statements to the Taxation Bureau for taxation purpose.