Wednesday, 3 September 2014
Wholly Foreign Owned Enterprise Registry. (WFOE)
About 80% of STIN’s clients would choose register in the form of WFOE (Wholly Foreign Owned Enterprise).In China,there are following five main company types:WFOE, EJV, CJV, RO and branch institutions.
STIN is endowed with the best and most professional bilingual staff,and the most reliable government resources,and the legal team with a wealth of experience in handling all kinds of cases.We aim to provide efficient and professional legal consulting and legal advice for those foreign investors to do business in China.
STIN is aiming at the one-stop solution of assisting our clients in company registration and all relevant stuff. The fist stage of the registration process is about the applying and receiving of all certificates and licenses required, and the approval of the government.The second stage is about opening a bank account.And the later stage is about the import and export,including customs,electronic port and inspection and quarantine.
What is WFOE:
WFOE means enterprises which are established inside China in accordance with Chinese laws,and whose capital are all invested by foreign enterprises,economic institutions or individuals.According to the rules of Foreign Enterprise Regulation,foreign capital enterprise must be registered to the benefit of the development of national economy,and match one of the following conditions which is international advanced technology and equipment are used or most/all products are exported.
Organization form of foreign capital enterprise is mostly limited liability company,also can be called as one person limited company.Embranchments of oversea enterprises and economy institutions does not counted into WFOE,for example:branch offices,representative offices,etc.
Classification of China WFOE:
If the enterprise is only allowed to participate in producing activity,then it can be called as a production type of foreign capital enterprise.If operate consulting service activities,then its consulting service foreign capital enterprise.If allowed to operate trading, wholesale,retail or distribution activities,then its commercial foreign capital enterprise or foreign invested commercial enterprise.
China WFOE's Specialty:
1.The investment of the enterprise are a hundred percent owned by foreign investor except the real estate,no Chinese investors participated.A enterprise can be wholly owned by one foreign individual or joint owned by several foreign investors.
2.Independent operation,no Chinese party participate in operating management.Enterprise operate in accordance with approved AOA and without interference.
3.Self-sustaining.Profits (after tax) of the enterprise is wholly dominated by investors.Give notice and do the liquidation process in accordance with relevant law in time after the termination of the enterprise.