WFOE or FICE is really a limited risk business formed in China completely by foreign investors. It's completely under foreign command and that includes any Chinese partner participation. It allows foreign investors to manufacture, process, assemble, trade, distribute, deliver services in mainland China. The nature of the organization needs to be documented and approved by the mainland China Government during the procedure of registration and if it is changed in later days on the prior approval of the Government.
WFOE or FICE could usually command their governance through the by-laws approved by the Government. The first investment capital for setting up a WFOE is RMB100,000 to RMB500,000 for consulting business field and RMB1,000,000 for trading and production industries. In recent years, it's been the Government policy to encourage companies with particular organization natures to become setup in some second- or third-line areas and cities of some provinces. These provinces can provide lower investment capital needs. Corporate income rate is usually 25%.
WFOE is the most common corporate entity for non-PRC investors owing to their versatility and some unique advantages:
the power to uphold a company's organization strategy free from interference by Chinese partners
total management command by investors in the laws of the Government
the power to both remit and get Chinese official currency Renminbi(RMB) back to the overseas parent holding business
increased protection of trademark and intellectual property, in accordance with global law
shareholder risk limited to original investment
We provide one-stop services for corporate documents notarisation and legalisation by specified organisations like China Appointed Attested Officers, the China Legal Services (HK) Limited in Hong Kong too as Chinese embassies of recognised nations. We also provide such services as:
- Preparation of bank reference letters;
- Translation of documents;
- Examine of company proposals;
- Leasing of office and factory; and
- Different requests and needs.
Time frame for registration is around 2-4 months, subject towards the various provincial governments' routines and the nature of organization of the applicant firms.
China