Company Registration Service in China
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WFOE（Wholly Foreign Owned Enterprise）
WFOE is established by foreign enterprises and other economic organizations or individuals, which is located in China and whose entire capital is invested by foreign investors.
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JV (Joint Venture)
JV is an enterprise in which Chinese shareholder(s) and foreign shareholder(s) jointly invest and operate in China, and share profits, risks and losses in proportion to the investment.
WFOE（Wholly Foreign Owned Enterprise）& JV (Joint Venture)
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Organizational Form
An enterprise legal person is established in accordance with Chinese law, and the corporation can independently assume civil liability. The corporation shall bear economic liability up to the amount of registered capital.
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Business Scope
The business scope must be within the limits of Chinese laws and regulations. If it involves domestic regulated business (such as food, alcohol, import and export trade, medical instrument, etc.), it is necessary to apply for a corresponding license before
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Articles of Association
According to Chinese laws and regulations, a WFOE should have an articles of association that meets the requirements and should be filed with the registration authority.
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Shareholders
1-50 shareholders
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Registered Capital
The registered capital is a subscription system
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Operation Period
There is no limit to the operation period.
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Employee
Labor contracts can be signed with employees, and the number of employees is unlimited.
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Bank Account
Various types of accounts can be opened provided that the relevant requirements of the bank are met. WFOE can enjoy various services such as financing and wealth management from various financial institutions.
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Taxation
1. Corporate income tax --actual basis of assessment.
Comprehensive tax rate for small and micro enterprises:
5% of profit below 3 million
25% of profit above 3 million
Exemption from foreigner dividend tax (20%)
RO (Representative Office)
RO refers to the offices established in China to engage in non-profit activities related to the business of enterprises in that country.
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Organizational Form
No legal personality. The parent company assumes unlimited joint and several liability.
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Business Scope
RO can only engage in non-direct business activities within the territory of China, and represent foreign companies in liaison, product promotion, market research, technical exchanges and other business activities within the scope of their business.
If the parent company is engaged in finance, securities industry, financial consulting and other businesses, the RO established will also be supervised by the corresponding supervisory agency.
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Operation Period
The period of residence of the RO shall not exceed the period of existence of the foreign enterprise. For foreign enterprises with a long-term existence period, the RO’s residency period cannot exceed 20 years
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Shareholders
0
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Registered Capital
There is no requirement for registered capital
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Articles of Association
No articles of association.
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Employee
The number of representatives (including the chief representative) of the representative office shall not exceed 4. The chief representative, representative and staff of the RO appointed by the foreign enterprise shall be dispatched or hired by the foreign affairs service company.
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Bank Account
RO can open a bank account and receive foreign exchange, but only for daily business expenses.
L/C accounts cannot be opened in banks (L/C is required for import and export trade.)
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Taxation
1.Corporate income tax-- deemed basis of assessment The approved profit margin is 15%.
(Taxable income = current expenditure/(1-approved profit rate) × approved profit rate Taxable amount = taxable income x 25%)
2 The representative office cannot apply as a general taxpayer.
Others
Other restrictions of RO:
1 A foreign enterprise must have existed for more than 2 years before setting up a RO in China.
2 A RO cannot be converted into a WFOE/JV, only after cancellation, a new WFOE/JV can be re-registered.
