Understanding the procedures and fees to set up a WFOE in China
Wholly Owned Foreign Enterprises (WFOEs) in China is increasingly getting popular with foreign international companies due to the increased business flexibility as compared to a Representative Office. WFOEs negate the need for a Chinese partner and do not need to a large sum of registered capital to fund and is suitable for overseas firms who wish to manufacture, process or assemble their products in China. Apart from the traditional manufacturing, WFOE now includes a wider range of business which includes trading, consultancy and services.
As such, we seek to provide an overview of the registration process, the relevant costs and time needed to complete the registration for foreign firms who are interested to enter China through the means of WOFOE.
Stage 1 – Pre-approval of Name of WFOE
Agency: State Administration of Industry and Commerce (SAIC). No processing fee is required and processing time is within 2 working days.
Stage 2 – Application for Setting up WFOE
Agency: Municipal Bureau of Commerce. No processing fee is required and processing time is within 7 working days.
Stage 3 – Processing of Proposed Agency Code
Agency: State Bureau of Technical Supervision (The Administration Center of Organization Code). Processing fees are about RMB 250 and processing time is 2 working days after acceptance of registration.
Stage 4 – Industry and Commerce registration of Joint Venture (For Joint Venture)
Agency: State Administration of Industry and Commerce (SAIC). Processing fee is 0.08% of amount of registered capital +RMB 20 and processing time is 7 working days.
Stage 5 – Registration with the State Public Security Bureau
Agency: Public Security Bureau Exit-Entry Administration. No processing fee is required and processing time is within 6 working days.
Stage 6 – Engraving Services for Enterprise Seal to Be Used on Official Documents
Agency: State Public Security Bureau. Processing fees are about RMB 800 and processing time is within 2 working days.
Stage 7 – Tax Registration
Agency: Municipal Local Taxation Bureau. Processing fee is RMB 10 and processing time is within 5 working days.
Stage 8 – Registration of Administration of Foreign Exchange for Overseas Fund Transfer
Agency: Beijing Center of Foreign Exchange Control. No processing fee is required and processing time is 20 days after acceptance of the registration.
Stage 9 – Opening of Bank Account
Agency: any reputable banks. Processing time and fee depend on the charges of each bank.
Stage 10 – Registration for Financial License
Agency: State Financial Bureau. No processing fee is required and processing time is 2 days after acceptance of the registration.
Stage 11 – Registration for Statistic and Audit License
Agency: Regional Bureau of Statistics of China. No processing fee is required and processing time is 2 days after acceptance of the registration.
Remarks: please use these information as guideline only, procedures and fees can be varied from times and cities.
For more detailed and updated information, contact us now!