China continues to bring business opportunities to foreign investors and its middle class has been a major force of economic resilience in the current economic downturn. The recent reopening of luxury stores, the likes of Louis Vuitton, Bvlgari and Cartier, have attracted a snake of queues stretching out a few hundred meters in shopping malls in Beijing and Shanghai. The country’s saving rates, in comparison to its GDP, remain at 48%, the world’s highest.
If you’d like to open a company that is intended to attract the Chinese consumer, there are types of companies that you can consider, with the wholly foreign-owned enterprise (WFOE) the most popular. A government agency, called The State Administration for Industry and Commerce of the People’s Republic of China, issues the business registration certificate to all companies that are newly formed, including the ones that are owned by foreign investors.
Typically, a wholly foreign-owned enterprise in China gives you direct control over your business.
At least one investor (from any nationality other than China, but including a natural person, economic organizations and company incorporated in Hong Kong, Macau and Taiwan regions)
2.At least one director (also acting as the legal representative of the enterprise if there is only one director appointed)
At least one supervisor (A supervisor cannot act as a director, legal representative, or senior executive of the Company at the same time)
There must be an actual registered address (Sinda Corporation can help and our fee includes this )
Registered capital that matches the company’s business scale，the minimum registered capital is RMB 30,000 or its equivalence of foreign currency.
6. The documents that you need to provide)
The investor’s Identification document or Certificate of Registration needs to be notarized by a local notary public and authenticated by the embassy of China in the home country of the investor. At least two sets of the Notarization Certificates need to be furnished. The identification of a resident in Hong Kong, Macau, and Taiwan needs notarization only. (The Certificates must be attached with Chinese translation if it is in foreign language).
Assume that the enterprise is invested by a UK company
Certificate of incorporation
Business registration certificate
The notarization contents are as below:
The resolution of the board of directors(including the legal person prove of the investor )
Copies of Passport/ID card/Travel Permit of Directors and Supervisors of the Enterprise
Copies of Certificate of the legal person of the Enterprise Original of his/her passport, Identification card, or permit (The legal person can be Chinese nationality)
An original office lease contract certificate(Our fee includes this service)
Document templates will be provided by Sinda Corporation and we will prepare documents for signature by the legal representative
Other documents required for registration at government departments
In the event that the company is invested by a foreign individual, the investor’s identification document shall be notarized by a local notary public and authenticated by the Embassy of China in his/her home country. The notarization documents referred to the passport of a foreigner, the Taiwan compatriot permit of a Taiwanese, and the travel permit for a Hong Kong and Macau resident. If notarization documents are not provided, the investors are required to present and sign all documents at the government departments personally.
The most popular business activities for WFOEs are :
- China Manufacturing
- China Business Consulting Services
- Food & Beverage
- Import and Export Services