China FICE

A China FICE (Foreign-Invested Commercial Enterprise) is an ideal way for foreign investors to enter China's rapidly-growing local import, export and retail markets. The following will help you make an informed decision on whether a China FICE is the optimum structure to fulfill your international business objectives.
Advantages of a China FICE
1.	Unlike a China WOFE (Wholly-Owned Foreign Enterprise), a China FICE can open and operate branch offices anywhere within China. Furthermore, a China FICE can be 100% foreign owned.
2.	A China FICE can carry out a wide range of activities, including wholesale, retail and franchising trade activities in China. This is thanks to the updated policy of trading and distribution rights made in 2004, as these sectors were previously closed or restricted for foreign companies.
3.	Foreign investors planning on setting up a China FICE should note that there are no annual turnover or minimum asset requirements. Previous regulations required an annual average turnover of at least US$2.5 billion in the three years prior to the application and a minimum asset value of US$300 million in the year prior to the application.
4.	Investors planning to further their business scope in China can upgrade their China representative office to a China FICE.
Disadvantages of a China FICE
1.	A China FICE must inject a minimum 20% of the paid up capital into a corporate bank account within the first month of incorporation. The 80% balance is injected into the account in installments within two years of incorporation. The minimum registered capital required for; trading rights is RMB1 million (US$145,700),wholesale distribution rights is RMB500,000 (US$72,800) and for retail distribution rights it is RMB300,000 (US$43,700).
2.	A China FICE is not permitted to carry out any manufacturing activities. Furthermore, wholesale China FICE must obtain approval from both the Ministry of Commerce in Beijing, as well as the authorities in the province in which it intends to set up. A retail China FICE, on the other hand, must obtain approval only from provincial authorities to open a retail store in China.
3.	Setting up a China FICE takes approximately 3 months.
Uses of a China FICE
A China FICE is the optimum way for a foreign company to distribute its products in China. There are two main types of China FICE as follows:
Wholesale China FICE - a wholesale China FICE may conduct commodity wholesale; commission-based agency activities; import and export of commodities; warehousing services; marketing services; product installation and after-sales services; indirectly engage in retail activities via franchisees. Retail China FICE - a retail China FICE may conduct commodity retailing activities; import merchandise; source and export Chinese products; conduct TV and telemarketing, mail order sales, Internet sales and vending machine sales. If applying to open a shop at the same time as applying to establish the retail China FICE, a proposed shop must conform to the urban development plan and the commercial development plan of the city where it is situated. If applying to open a shop after the establishment of the retail China FICE, then in addition to meeting the above requirement, the enterprise must also have undergone annual inspection on time and passed, and have received all of its registered capital from its investors.
Healy Consultants' fees to set up a China FICE
Our fees to set up a China FICE amount to US$8,500 Other Information on China FICE formation China Company set up procedures China Company registration process Other services to support China incorporation.
Contact Us
For more information on our China FICE services, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120.
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