DOC

GUIDE TO SHENZHEN WFOE

By Joe Robinson,2014-07-16 18:01
11 views 0
GUIDE TO SHENZHEN WFOEGUIDE,WFOE,guide,Guide,wfoe

     GUIDE TO SHENZHEN WFOE

I. OVERVIEW OF SHENZHEN

    Shenzhen is the best choice for doing business in China. Situated in the Southern China, Shenzhen is the first Special Economic Zone since China carried out reform and open-door policy 33 years ago. Shenzhen has an area of 1953 square km’s and a population of more than 10 million. Shenzhen is the best city both for living and working in China as well as the youngest and fastest growing city in the world. In Shenzhen you can enjoy the sound infrastructure and the intensive industrial chain for manufacturing, trading and value investment. Since Shenzhen is bordering Hong Kong, you can also take great advantage and opportunity from the “one country, two systems” policy.

II. THE CONCEPT OF WFOE

    WFOE stands for wholly foreign owned enterprise, which is a Limited liability company wholly owned by the foreign investor(s). The foreign investors refer to the foreign enterprise, individual or partner. (Including Hong Kong, Macau and Taiwan).

III. COMPANY NAME

    The Shenzhen government has a name format for anyone who wants to setup a WFOE in China, the format is: Shenzhen + trade name + business scope+ limited. In China, only Chinese company names are officially used, while English names are for reference only. Any names are subject to the approval of relevant authority..

IV. SHAREHOLDER, DIRECTOR, MONITOR AND LEGAL REPRESENTATIIVE

    A shareholder could be acted by legal person( foreign company) or natural person (individual), a director or a monitor could be acted by foreign person or Chinese person. A monitor is appointed to supervise the company’s operation and management. A legal Representative is a person in charge of corporate operation and management and development, responsible for all the legal affairs arising from the business running.

V. BUSINESS SCOPE

    One of the most important issues is to define the business activities of the WFOE. Business scope is narrowly defined based on many factors, such as trade names, registered capital and business scope. WFOE can only conduct business within its approved business scope on the business license. Amending the business scope need further application and approval if the name reserve is not successful. For some sectors such as education, logistics, medicine and food industries, pre-approval license is needed before we enter into normal processes..

VI. REGISTERED AND PAID-UP CAPITALS

    1. In China, the registered capital is different from varied situations and sectors. For the manufacturing enterprise, the registered capital of RMB 1 million or above is usually required. for the trading and

     wholesaling RMB500,000 or above; for retailing, as low as RMB300,000; for the service sectors, such as consultancy, technology, market research and development, the registered capital is around RMB100, 000 or above; for domestic companies, as low as RMB30,000.

    .

    2.The capital to be subscribed in lump sum as contemplated in the Articles of Association shall be paid up

    ____________________________________________________________________________________________________

    …………WEBSITEwww.3737580.net www.for-vip.net…………

    TEL 852-27837818 (HK) 86-755-82143272(SHENZHEN) EMAILatahkhk@21cn.com

    1

    within six months from the date of issue of Business License. The capital to be subscribed by installment as contemplated in the Articles of Association shall be paid up within three months from the date of issue of Business License, with the first installment not to be less than 20% of the amount of capital subscription. The capital injection report issued by the CPA is required for the paid-up capitals subscription. The fee of paid-up capital injection will be reduced if the registered capital can be paid in one time.

VII. PREFERENTIAL POLICIES FOR WFOE in SHENZHEN

    Most of the preferential policies have been abolished since January 1, 2008, but for some sectors preferential policies still remain there, such as hi-tech or environmental protection sectors. Contact ATAHK for more information at 86-755-82143272.

IX. GORVERNMENT PROCESSING PROCEDURE

    Step 1: Checking the company name with local Company Registry (原工商局 ICAB,现称深圳市市场监督管

    理局MSA, Market Supervision Administration of Shenzhen Municipality);

    Step 2: Achieving an approval from the Fire and Environment Bureau?消防\环保局?for manufacturing sector;

    Step 3: Pre-approval for some special sectors;

    Step 4: Go to the Science, Industry, Trade and Information Technology Commission SITICfor certificate

    of approval (深圳市科工贸信委, 原贸工局) ;

    Step 5: Apply for the business license from MSA (市监局);

    Step 6: Apply for stamps from the Public Security Bureau?公安局?;

    Step 7: Apply for the Organization Code License from Bureau of Quality and Technical Supervision?国家质

    检局?;

    Step 8: Apply for the registration licenses from National & Local Tax Bureau?国\地税局);

    Step 9: Apply for the permits for the bank account opening from bank authorities?人民银行?;

    Step10: Apply for Foreign exchange IC card & registration license from National Administration of Foreign Exchange?国家外汇管理局?;

    Step11: Open the saving account with the bank (current account could be opened later)?银行?;

    Step12: Apply for the Import & Export registration license from local Customs (if needed) ?海关?;

    Step13: Apply for Financial Registration For Enterprises With Foreign Investment from Financial Department.(财政局)

X. DOCUMENTS REQUIRED FOR THE TRADING ENTERPRISES

    Part one, documents needed to be prepared from abroad as follows

    1. Copy of the business license or certificate of incorporation of parent company;

    2. The original and copy of identification documents (ID card, passport) of legal representative, and eight color photos;

    3. Two original bank reference letters (from investor's bank) indicating foreign investors' creditability, issued within 6 months in either English or Chinese version;

    4. Lawyer’s legalization or notarization which should be endorsed by local China Embassy or Consulate 5. Latest annual auditing report if the parent company has been set up for more than one year.

     Part two, documents needed to be prepared from Shenzhen as follows

    1. One proposed name (in Chinese), and provide two or more alternative names in case the first name is not available.

    2. Detailed information about the business scope and intended registered capital;

    3. Detailed information of legal representative, shareholder, director, monitor, manager)

    ____________________________________________________________________________________________________

    …………WEBSITEwww.3737580.net www.for-vip.net…………

    TEL 852-27837818 (HK) 86-755-82143272(SHENZHEN) EMAILatahkhk@21cn.com

    2

    4. The lease of commercial office between lessor 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 required is no less than 30 ? and for commercial use only with more than

    one years rent.

XI. DOCUMENTS REQUIRED FOR THE MANUFACTURING ENTERPRISES

    Item 1 - 9 the same as above

    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? and for manufacturing use only with more than one years rent.)

    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

XII. DOCUMENTS REQUIRED FOR THE FOREIGN INDIVIDUALS’ ENTERPRISES

    1.Original document & copy of identification documents (ID card, passport) of Chinese company's legal representative, directors, monitors and managers.

    2. Local lawyer's legalization or notarization of the investors passport endorsed by the Chinese embassy or

    consulate in the investors country.

    3. Eight color photos of the legal representative;

    4. Two original bank reference letters (from investor's bank) indicating foreign investors' creditability, issued within 6 months in either English or Chinese version.

ATA——Serving the World of Business, Sincerely & Professionally.

    ____________________________________________________________________________________________________

    …………WEBSITEwww.3737580.net www.for-vip.net…………

    TEL 852-27837818 (HK) 86-755-82143272(SHENZHEN) EMAILatahkhk@21cn.com

    3

Report this document

For any questions or suggestions please email
cust-service@docsford.com