China Company Setup

Setting up a Wholly Foreign-Owned Enterprise (WFOE) in China can be a complex process, but it is an essential step for any foreign company seeking to establish a presence in the country. Here is a step-by-step guide on how to set up a WFOE in China:

1. Determine Business Scope: Before you can set up a WFOE, you will need to determine the scope of your business and the activities you will be engaged in. You will also need to determine the amount of registered capital needed to establish the company.
2. Choose the Company Name: You will need to choose a unique name for your company that complies with Chinese naming conventions. The name will need to be approved by the State Administration for Industry and Commerce (SAIC).
3. Register with the SAIC: You will need to register with the SAIC and provide a range of documents, including your company’s Articles of Association and business license.
4. Obtain Business License: Once your registration has been completed, you can apply for your business license. Your business license will indicate the registered capital of your company, as well as your business scope.
5. Open a Bank Account: You will need to open a bank account for your WFOE and transfer the registered capital to the account.
6. Register with Tax Authorities: You will need to register with the local tax authorities and obtain a tax identification number.
7. Obtain Other Licenses and Permits: Depending on the specific nature of your business, you may need to obtain additional licenses and permits from relevant authorities.

Overall, setting up a WFOE in China involves a range of procedures and requirements, and may require the assistance of a local agent or consulting firm. However, with proper planning and preparation, it is possible to establish a successful WFOE in China.