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Wholly Foreign-owned Enterprise
Approval of a wholly foreign-owned enterprise depends on whether the enterprise is deemed to benefit the development of China's national economy. The Chinese government prefers enterprises, which employ advanced technology and equipment to manufacture products that are important to the national economy and are not produced in China. Enterprises, which export a large portion of their products, also are more likely to be approved. Ministry of Commerce is responsible for approval of wholly foreign-owned enterprises, although other national and local authorities typically participate in the pre-approval screening steps required before the application documents are forwarded to Ministry of Commerce for approval. Because the foreign investor is the sole operator of a wholly foreign-owned enterprise, it is responsible for guiding its application through different Chinese authorities.
Steps to set up a WFOE in China
Application Procedures for registering WFOE
- Approve new company's name
- Obtain the Certificate of Approval issued by Commerce Bureau
- Obtain the Company Code Certificate (Both original and duplicate) issued by Quality and Technical Supervision Bureau
- Obtain the Business License (Both original and duplicate) issued by Beijing Administration for Industry and Commerce
- Registration with Public Security Bureau
- Obtain taxation Certificate issued by both State and Local Taxation Bureau (Both original and duplicate)
- Obtain certificate of Foreign Exchange issued by SAFE
- Set up account in bank
- Registration with Finance Bureau
- Registration with Statistics Bureau
Documents Required for registering WFOE
- The name, domicile, place of registration of the foreign investor
- Copy of the business licenses or certificates of incorporation of the foreign investor and Passport copy of the legal representative
- Appointment letter to be signed by the president of the head office to appoint the chairman and other board members
- Two original bank credibility letters for the foreign investors, issued within 6 months in English
- Investor's Audit Report of the last year
- The name of the WFOE (at least 3 applied company names)
- The domicile of the WFOE that is to be established
- An original copy of leasing agreement with chop of the landlord
- The scope of business, products and production scale
- The total amount of investment, registered capital, source of funds, form of investment and duration of the WFOE
- ID / passport copy of WFOE's legal representative and his 3 photos, one resume (from 18 years old)
- Copies of other board member's ID cards or passports, resume and 2 photos
- Articles of Associations
- Feasibility study report
- Sample appointment letter
- Sample Promises letter
- Project application report
- Name lists of the board members
- Application letter
- Commission letter
Notice：
Investor’s business license, bank credibility letter and investor's passport copy need to be legalized by Chinese embassy or consulate in investor's country.
Language of the Documents
All the documents submitted to the government authorities must be conducted in CHINESE language. |
