Company Formation in China

CORE is a Hong Kong licensed Corporate Service provider, and along with our many partners in the different cities of mainland China, we can support you in the incorporation of a China WFOE and Representative Office based on you’re the nature of your business and other requirements.

China WFOE

Under Chinese law, a Wholly Foreign-Owned Enterprise (WFOE) refers to a mainland China-based business entity that is designated for foreign enterprises or foreigners to establish a limited liability company within mainland China. When operating as a WFOE, a business can realize a complete 100% control in their business operation and finance, in the view of their foreign parent enterprise.

Characteristics

A WFOE is a separate legal entity for a foreign enterprise to conduct business in China.

Each WFOE must select and declare the industry category that it is operating in, and the Province/Town of incorporation upon registration as a business, and it is a complicated process if you need to change such particulars in the future. Based on registered industry and town, the foreign parent enterprise will start to inject minimum capital into the WFOE. Although WOFE is a limited liability company in essence, the foreign parent enterprise must appoint a legal representative residing in the mainland China when establishing a WFOE, and this legal representative holds unlimited personal liability on behalf of the WFOE. It is more complicated to register as a WFOE in China, than establishing a foreign business in many countries. It requires the submission of a variety of business proof and background information during the application process, and the registration will undergo a series of reviews and vetting by the different government bureaus, as well as the state and regional authorities. Capital Requirement

The registered capital requirements differ for different provinces, towns and industries.

Types of WOFE	Minimum Registered Capital
Free Trade Zone	RMB 10,000
Consultancy	RMB 100,000 to RMB 500,000
Service	RMB 100,000 to RMB 500,000
High-Technology	RMB 100,000 to RMB 500,000
Trading	RMB 500,000 to RMB 1,000,000
Manufacturing / Production	RMB 1,000,000

Required Information & Documents

1. For a duly registered foreign company, we would highly recommend registering a Hong Kong company instead, because the costs and application procedure are much simpler
2. The proposed Chinese name for the WFOE (in Simplified Chinese)
3. Business license, Certificate of Incorporation, Commercial Registration of the investor duly legalised by the China Certificate Office (with the certification by an Appointed-Attesting Officer in China)
4. Proposed industry category
5. Proposed Province/Town of operation
6. Passport and/or identification document of the legal representative
7. Resume of the legal representative
8. Lease Agreement for the WFOE’s office and the property right certificate of the owner
9. Bank Reference Letter from the country of registration
10. Appointment letter from the board members of the parent holding company
11. The Article of Association of the WFOE
12. Business Proposal
13. Organisation Chart
14. Business scope and details of the company’s service and product offerings
15. Number of employees and organisation chart

Opening Of Bank Account In China

After the WFOE license is issued successfully, our company would advise you on the local Chinese bank to open a bank account with. Usually, a bank account can be opened in under one week.

Service Fee

We offer a free consultation, and the cost of registration is subject to the province / town and business nature.

Representative Office

A China Representative Office, also known as Liaison Office, is a commonly used low-cost investment vehicle for mainland China-based businesses. It is designed for foreign businesses hoping to develop a presence in the Chinese market.

A Representative Office cannot conduct any activities that generate profits. Pursuant to China law, they can only perform liaison and communication activities. They are not authorised to sign any legally binding documents, or charge any customers any fees, and they are not allowed to charge a service fee either. Basically, they are not permitted to conduct any direct business profit-making activities, therefore, the company may not issue invoices to their customers or receive money in any circumstances. Typically, Representative Offices are used for marketing, research, sales, and showroom functions.

Capital Requirement

The cost of setting up a Representative Office is RMB 30,000.

Required Information And Documents

1. For a duly registered foreign company, we would highly recommend registering as a Hong Kong company instead, because the costs and application procedures are much simpler
2. The proposed Chinese name of WFOE’s name (in Simplified Chinese)
3. Business license, Certificate of Incorporation, Commercial Registration of the investor duly legalised by the China Certificate Office (with the certification by an Appointed-Attesting Officer in China)
4. Proposed Province/Town of operation
5. Passport and/or identification certificate of the legal representative
6. Resume of the legal representative
7. Lease Agreement for the WFOE’s office and the property right certificate of the owner
8. Bank Reference Letter from the country of registration
9. Business Proposal

Opening Of Bank Account In China

After the license to operate a Representative Office is issued, our Company would advise you on the local Chinese bank to open a bank account with. Usually, a bank account can be opened in under one week.