China Company Registry (WFOE)

Shenzhen Company Registry
If you want to register a Shenzhen company, you don't turn to the relevant government departments for so many certificates and formalities, but just turn to Vini. At Vini we are not only give you tailor-made service for your need, but also for your ten percent satisfaction. Vini services are business-orientated and value-orientated. Vini— serving the global business, professional and fast.

WFOE stands for Wholly Foreign Owned Enterprise, which is a limited liability company wholly owned by either a foreign legal entity or a foreign natural person. The foreign investors may be foreign enterprises or individuals from Hong Kong, Macau, Taiwan or overseas.

COMPANY NAME
In Shenzhen of China, only Chinese company names are officially used, while English company names are for reference only. Not every name will be accepted by the ICAB (Company Registry). For some sectors such as education, logistics, medicine and food industries, a special pre-approved license is needed. It is important that you know the wording of a company name should conform to the registered capital and business activities. The words "international" or "investment" or "industrial" within a company name suggest that the registered capital should be more than RMB 10 million, while a "group'' or "holding" should be more than RMB 30 and 50 million respectively.(The detailed information depends on the local stipulation). Your company name must be distinguished from the other registered names. If the word “China” is within the company name, it is required to be pre-approved by ICAB at national level in Beijing.

SHAREHOLDER, DIRECTOR, MONITOR &LEGAL REPRESENTATIVE
Shareholders, directors, monitor and legal representative should be considered and arranged before the business setup.
1. A shareholder could be a legal person (foreign company) or a natural person (individual).
2. A director could be acted by a foreign person or a Chinese person.
3. A monitor should be appointed to supervise the company’s operation and management. A monitor could be acted by a foreign person or a Chinese person.
4. A legal representative is a person in charge of corporate operation, management and development, responsible for all the legal affairs arising from the running of the business. The position could also be held by non-shareholder or non-director.

BUSINESS SCOPE
The WFOE can conduct business within its approved business activities described on the business license. Vini will help you for more business activities during the application. Amending the business scope requires further application and approval. Generally speaking, different business activities are confined according to different business sectors

PREFERENTIAL POLICIES FOR WFOE IN SHENZHEN
Although most of the preferential policies have been abrogated since January 1st, 2008, but for some sectors within some free trade zones or hi-tech development zones, qualified enterprises are still enjoying tax holidays or special financial subsidies. In 2009, preferential policies for business outsourcing sector in the 20 cities around the country are good news and good chances for those who are interested in the service industry. For more information, you are welcome to contact Vini at 86-755-82375737.

WORKING PROCEDURE
Step 1: Fill out the application form (sign the agreement);
Step 2: Company name search & confirmation;
Step 3: Pay for the services;
Step 4: Submit the needed documents;
Step 5: Check the documents;
Step 6: Prepare for the statutory documents; Let the investors sign the documents personally, and then submit all the documents to the government
Step 7: Keep clients informed of the processing.
Step 8: Finish processing in 30-50 working days; (it depends on the registered address and business scope)
Step 9: Hand over all the company kit to clients;
Step 10: Sign the receipt.  

DOCUMENTS REQUIRED FOR THE TRADING ENTERPRISES
1、Minutes or resolution from investors or board of directors
2、One proposed name (in Chinese), and provide two or more alternative names in case the first name is not available.
3、Detailed information about the business scope and intended registered capital;
4、Feasibility study report;
5、Four original articles of association signed by members of the Board and with company stamp;
6、Copy of the business license or certificate of incorporation of parent company;
7、The original and copy of identification documents (ID card, passport) of legal representative, and two color photos;
8、Two original bank reference letters (from investor's bank) indicating foreign investors' creditability, issued within 6 months in both English and Chinese version;
9、Lawyer's legalization or notarization which should be endorsed by local China Embassy or Consulate
10、The lease of commercial office between leaser and lessee needed to be endorsed by the Housing Management Authority. The lessee should be acted by shareholders, directors, legal representative, monitors or manager. The area is required no less than 30 m2 and for commercial use only with more than one year’s rent.  

 DOCUMENTS REQUIRED FOR MANUFACTURING ENTERPRISES
Step 1 - Step 9 the same as above
Step 10: Manufacturing address: house property certificate or the lease of industrial workshop (two original copies of lease with signature and endorsed by Housing Management Authority. The area is required no less than 200 m2 and for manufacturing use only with more than one year’s rent.)
Step 11: Project reports are necessary for the approval by the relevant government department, such as, business service, environmental and fire departments. The safety standard of manufacturing area should reach the required standard set out by the Fire Department and Environmental Protection Department 

DOCUMENTS REQUIRED FOR FOREIGN INDIVIDUALS’ INVESTMENT
Step 1: Original document & copy of identification documents (ID card, passport) of Chinese company's legal representative, directors, monitors and managers.
Step 2: Local lawyer's legalization or notarization endorsed by the Chinese embassy or consulate in the investor’s country.
Step 3: Two color photos of the legal representative;
Step 4: Feasibility study report; (possible to seek to Vini’s assistance)
Step 5: Two original bank reference letters (from investor's bank) indicating foreign investors' creditability, issued within 6 months in both English and Chinese version. 

VINI SERVICES, FEE & TERMS OF PAYMENT
1: VINI package services for WFOE setup include:
seven copies of Approval document; 2 copies of original articles of association signed by members of the Board and with company chop; 2 copies of certificate of approval; Both original and duplicate copy of business license; 4 stamps for different use; Stamp carving registration card; Bank account documents; Both original and duplicate copy of Organization Code License & card; Registration license and form of National &Local Administration of Taxation; Foreign exchange registration license and approval certificate; Customs declaration registration certification; Financial Registration For Enterprises With Foreign Investment.
2: Service charge: RMB18000 yuan. Including the government service charge, except for the registered capital duty.
3: Terms of Payment: The applicant can pay by cash, check or T/T to Vini’s bank account before the service begins.

TAXATION ON WFOE
1. Overview of Taxation in China
The Tax System in China has undergone tremendous changes in recent years. Currently, there are 24 different types of tax imposed on a wide range of incomes and transactions. Taxpayers can be individuals, entities or economic organizations. To fulfill its WTO commitments, the Chinese government is currently preparing for another round of tax reform, which is expected to take place in 2010. Keeping place with compliance obligations in such a rapidly changing regulatory environment can be a major challenge. You are advised to seek professional advice from Vini regarding your particular circumstances.

2.  Business and Taxation in China
Any investors, who want to succeed in their business-doing in China, are strongly advised to better understand tax departments, tax categories, tax rate and official invoices in China.
As far as China tax department is concerned, China has two functional tax departments: national tax department (NTD) and local tax department (LTD), the former is for national use while the later is for local use. In every city or town there are national and local departments. Any person can contact these departments for information. Taxpayer should know which tax department to go to and the tax rate before tax return, here are some guidelines for  you:  Value Added Tax should be paid to NTD at rate of 0-17% monthly, Business Tax to LTD at rate of 3-20% monthly, Individual Income Tax to LTD at rate of 5-45% monthly, Enterprise Income Tax (EIT) is 25% to NTD at basis of quarterly return and annual renew,

3. China Tax Category and rate
The China tax could be classified as follows: Value Added Tax (VAT) at rate of 0-17%, Business Tax (BT) at rate of 3-20%, Enterprise Income Tax (EIT) at rate of 25%, Individual Income Tax (IIT) at rate of 5-45%, Consumption Tax by customs (CT) at rate of 3-5%, Resource Tax (RT), City Maintenance and Construction Tax (CMCT) at rate of 1%, House Property Tax (HPT), Stamp Duty (ST) at rate of 0.5-1%, Urban and Township Land Use Tax (UTLU)

4. Tax Return
Tax Return should be done monthly, quarterly and annually, Tax is collected on the basis of invoice volume, in China the invoices are granted from the NTD or LTD,

5. Tax Rebate
China government is stimulating its economy by encouraging export-orientated businesses; any exporters can enjoy the export tax rebate as high as 17% according to their categories.

BUSINESS FOLLOW-UP
Vini can provide a series of business follow-up services such as monthly bookkeeping and tax return, annual return services, internal auditing, financial planning and tax layout, China policy & market study. Other services include domain name registration, webpage design, website promotion, China trademark registration, Work Permit, Residence Permit, etc. in order to pave a smoother and wider way for your China business success.

PROCESSING PERIOD FOR WFOE
For manufacturing enterprise: it takes 30-40 working days to finish the processing before we get the required documents ready, especially the approval papers from the fire & environmental protection bureaus.
For the trading and service enterprise: it takes 40-50 working days to finish the processing before we get required documents ready.
It takes longer time for the application of the import and export license or VAT qualification license.

Please let us know if you have any question, do not hesitate to contact our professional consultants will reply to you as soon as possible, 
!! Incorporate companiesregistry ! Incorporate Your Wealth !!
 
VINI (HONGKONG) GROUP CO., LTD
218 C 5/F,Jaffe Mans,218 Jaffe Road,Wan Chai,Hong Kong
Telephone: +852-3111-2324   Fax: +852- 3175-2567
Email: info@companiesregistry.org
http://www.companiesregistry.org/

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