 |
|---|
|
|---|
A China WOFE, or WFOE, formation is a business entity formed in China entirely with foreign capital and is under full foreign control and ownership. A China WOFE formation is set up as limited liability entity and represents separate legal persons and is taxed according to local legislation. The following information will help you determine whether a China WOFE formation is the optimum corporate solution for your business: |
|
Advantages of a China WOFE Formation |
|
1.
|
A China WOFE formation requires only one shareholder, who can be any nationality. However, the shareholder must not be resident in China. Corporate shareholders are permitted for a China WOFE formation. |
2.
|
A China WFOE formation requires only one director (unless the investor decided to set up a Board of Directors for the China WFOE formation, in which case the minimum number of directors is three and maximum 13). A director can be any nationality and can be resident anywhere except China. |
3.
|
A China WOFE formation does not require a company secretary. |
4.
|
A China WOFE formation can be 100% foreign owned. |
Disadvantages of a China WOFE Formation |
|
1.
|
The field of permitted activities of a China WOFE formation is smaller than that of the China FICE. |
2.
|
A large amount of initial capital is required with China company formation. A China WOFE must pay 20% of the registered capital into a corporate bank account in the first 3 months of incorporation, the remaining 80% is to be paid within two years. Under China company law, the minimum share capital for a company with multiple shareholders is just RMB30,000 (US$5K) however, the real minimal capital requirements depend on what authorities believe to be required for each specific company project. |
3.
|
A China WOFE formation must prepare audited accounts as per Chinese company law. It must also submit a copy of audited financial statements to the tax authority, although these statements are not available viewing by the public. |
4. |
Corporate directors are not permitted for a China WOFE. |
5. |
The incorporation lead time for a China WOFE can as long as 6 months, depending on the type of business activity. |
| Contact Us | |
For more information on China WOFE formation, email email@healyconsultants.com or telephone us at (+65) 6735 0120. |
|
| Back to China Company Formation page. | |
| © 2003-2010 Healy Consultants Pte Ltd | ASIA COMPANY SET UP SERVICES |