China WOFE Formation
A China WOFE 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: |
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Advantages of a China WOFE Formation |
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A China WOFE formation can be 100% foreign owned. |
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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. |
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A China WOFE formation requires only one director (unless the investor decided to set up a Board of Directors for the China WOFE 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. |
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A China WOFE formation does not require a company secretary. |
Disadvantages of a China WOFE Formation |
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The field of permitted activities of a China WOFE formation is smaller than that of the China FICE. |
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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. |
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The incorporation lead time for a China WOFE can as long as six months, depending on the type of business activity. |
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Corporate directors are not permitted for a China WOFE. |
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A substantial initial capital is required with China company formation. A China WOFE and FICE must inject a minimum 20% of the paid up capital of RMB30,000 (US$4,400) into a corporate bank account prior to incorporation. The 80% balance is injected into the account in installments within two years of incorporation. |
| 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. | |
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