Shenzhen is located in the central south coastal areas of guangdong province,the east of Pearl River Estuary. Its east close to Dapeng Bay ,west meets to Pearl River Estuary,on the north are Dongguan and Huizhou,south to HongKong,there is only a river away HongKong New Territories. The city covers an area of 2020 square kilometers and the permanent resident population is 8.4643 million(statistics in 2006). The household register population is 1.9683 million people, the census register population is 6.496 million.Shenzhen is the first special economic zone.As Chinese main foreign trade port and international communication coast,Shenzhen not only makes brilliant achievements in construction but also has a good investment environment attract many investors to invest.In order to make enterprise understand how to set up a foreign investment company,Vini makes follow explaination.

1.The concept of a wholly foreign owned enterprise
Wholly foreign owned enterprise(WFOE) is overseas investor (include HongKong,Macao，Taiwan investors) invested in China and total capital investment invested by the foreign investment enterprise according to the law of the People's Republic of China and other relevant laws. Foreign investors refers to the foreign enterprise personal or partners (including Hong Kong Macao Taiwan).

2.The advantages of setting up a WFOE
(1). Independence and freedom of the parent company in the global strategy
(2). Have independent management can be formal, carrying out business, not as the representative office without restrictions
(3).Take RMB as income to provide customer RMB invoice.
(4).Transform RMB profits to dollar and pay to the parent  firm.
(5). Can be directly employ people in China
(6). To protect their intellectual property and proprietary technology.
(7).Don’t  need  share  the profits with other party.

3.Company Name
In China,there is certain registriction in company name.In the same industry,not only the company name cannot repeat but also the trade name.Only by the ministry of commerce and industry verify and allowance the name can be valid.There are many factors needed to be considered in naming:for example,’level city’ wording need to go to the regular unit for examination and approval,with a ‘provincial’ need to go to provincial unit for examination and approval,with a ‘China’ need to go to the Chinese ministry of commerce for examination and approval.

4.Registered capital and paid-in capital
Chinese company has requirement in registry capital,the company law lays down that the minimum registry capital is 30 000RMB.Registry different by company’s industry. But determine the capital need to consider following:company name,business scope,import and export right,type of business(production model,trade,consulting service).We suggest: consulting service needs to register more than 100 000,trade model needs to register more than 500 000,production model needs to register more than 1000 000.
You have two choices in registered capitai in place: one is pay at one time, you need to pay in six months after you get the business license;another one is you can pay for serval time after you get the business license, the first time need to pay no less than 20% of registered capital also no less than the minimum of lagal registered capital.You need to pay in 90 days after you get the business license.And the rest capital needed to pay in 5 years after you get the business license.Investment company can pay for several times in 5 years. The fixed number of years determine in registered capital,the less time you pay will be the less cost in capital verification. Registered capital can be invest by money,goods,equipment, technology.
PS：China has strict requirement in registered capital, you need to pay in legal time after fi-nish company registry, or you may break the rule of Regulations of the People’s Republic ofChina on Registration Administration of Companies and the law of ente-rprises with foreign investment.

5.The business scope of the company
China has requirement in business scope of the company which set up in China, is the business scope of business activities.Enterprise can only carry out business activities in business scope, the scope will mark in business license.If your business is in the scope, there is restriction in business scope,registered capital and company name.For example,the large the registered capital the wider range of your business scope. The business scope is relax after China gain membership in WTO.

6.Operational Process
(1)Entrust process
Fill the power of attorney form(ensure the content) →Submit the required information→examine and verify information →Do application documents→Sign the document→Submit the document in relevant government department→Inform the process→About 20-50 business days→Inform the customer to take the information→Sign in.
(2)The documents needed to prepare
1.Investment capital of new set up company(mark out the currency),registered capital,business scope and company name(prepare at least 3 names in order to verify)
2.Name and 2 photos(1 inch) of Legal representative,passport or ID card ,contact number and resume.
3. House rental agreement of new set up company.
4.Valid indentification of shareholder,supervisor and legal representative(The indentification of overseas needed to be notarized by local lawyer, which should be attested by the chinese embassy overseas stating the passport is authentic.)
5.The above persons need to provide nationality,address,fax,Email and the copy of ID c-ard or passport,the Hongkongese needs to provide Home Return Permit.
(3)Working process of Vini
Verify company name(1 day) →Apply for foreign enterprise bureau(5-8 days) →Making seals(1day) →Deal with organization code certificate(2 days) →Deal with the national tax and the government rent (1 day) →Deal with the foreign exchange card(2-4 days)→save the capital and get the capital verification report(8-12 days)→Change the company registered material(5-8 days)→set basic account(15 days) →Finish set up the new company
PS:the above time is business day

7.service items
（1）project approval documents (2) regulations of company (3)certificate of approval of Fore-ign Invested Enterprise(4) Business License for Legal Person (5)certificate of organization c-ode and Cards of Codes (6)registration of national tax and government rent (7)seals(8)regi-stration certificate of foreign exchange (9)foreign exchange dealer registration record(if you need) (10)registration certifica-te of financial (11)registration card for making seals (12) Opens an account licence (13) Open capital account (14) The customs import and export right(if you need)

8.Service fee standards
3000RMB+ government charges

9.company annual inspection
The company getting the <Business License for Legal Person> and <business license> befo-re Decembe 31th need to do annual inspection in the second year,the legal time is Marc-h 1st- June 31th.If you need help don’t hesitate to contact us.

10. Enterprise Tax Returns
The company set up in China need to make Tax Returns in government appointed time every month. There are many categories of taxes in China(for example, business tax, enterprise income tax, value added tax, Export Rebates etc). For the merchants who just came to China do not understand the Chinese tax,Vini can help you plan in order to cut your cost.

11.Follow-up service
Vini can open basic account,tax account, do Tax Returns,do annual inspection,deal with the customs import and export right, deal with average taxpayer qualification authentication, deal with employment permit of foreigner,Visa,deal with enterprise employees social security,enterprise change, enterprise cancellation, registered trademark, apply for a patent, financial tax planning,brand planning etc.

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/