Shenzhen WFOE Registration

Update time:2016-01-13  source:

If you want to invest in China, you don't just turn to the relevant government departments for so many certificates and formalities, but turn to CITILINKIA. At CITILINKIA we don't just give you tailor-made service for your need, but for your satisfaction.

I. OVERVIEW OF SHENZHEN
Shenzhen is the best choice for doing business in China. Situated in the Southern China, Shenzhen is the first Special Economic Zone since China carried out reform and open-door policy 34 years ago. Shenzhen has an area of 953 square km’s and a population of more than 10 million. Shenzhen is the best city both for living and working in China as well as the youngest and fastest growing city in the world. In Shenzhen you can enjoy the sound infrastructure and the intensive industrial chain for manufacturing, trading and value investment. Since Shenzhen is bordering Hong Kong, you can also take great advantage and opportunity from the “one country, two systems” policy.

 

II. THE CONCEPT OF WFOE
WFOE stands for wholly foreign owned enterprise, which is a Limited liability company wholly owned by the foreign investor(s). The foreign investors refer to the foreign enterprise, individual or partner (including Hong Kong, Macau and Taiwan).

 

III. COMPANY NAME
The Shenzhen government has a name format for anyone who wants to setup a WFOE in China, the format is: Shenzhen + trade name + business scope+ limited. In China, only Chinese company names are officially used, while English names are for reference only. Any names are subject to the approval of relevant authority.

 

IV. SHAREHOLDER, DIRECTOR, MONITOR AND LEGAL REPRESENTATIIVE
A shareholder could be acted by legal person (foreign company) or natural person (individual), a director or a monitor could be acted by foreign person or Chinese person. A monitor is appointed to supervise the company’s operation and management. A legal Representative is a person in charge of corporate operation and management and development, responsible for all the legal affairs arising from the business running.

 

V. BUSINESS SCOPE
One of the most important issues is to define the business activities of the WFOE. Business scope is narrowly defined based on many factors, such as trade names, registered capital and business scope.  WFOE can only conduct business within its approved business scope on the business license. Amending the business scope need further application and approval if the name reserve is not successful. For some sectors such as education, logistics, medicine and food industries, pre-approval license is needed before we enter into normal processes.

 

VI. REGISTERED AND PAID-UP CAPITALS
1. In China, the registered capital is different from varied situations and sectors. For the manufacturing enterprise, the registered capital of RMB 1 million or above is usually required. for the trading and wholesaling RMB500,000 or above; for retailing, as low as RMB300,000; for the service sectors, such as consultancy, technology, market research and development, the registered capital is around RMB100, 000 or above; for domestic companies, as low as RMB30,000.


2. The capital to be subscribed in lump sum as contemplated in the Articles of Association shall be paid up within six months from the date of issue of Business License. The capital to be subscribed by installment as contemplated in the Articles of Association shall be paid up within three months from the date of issue of Business License, with the first installment not to be less than 20% of the amount of capital subscription.


The capital injection report issued by the CPA is required for the paid-up capitals subscription. The fee of paid-up capital injection will be reduced if the registered capital can be paid in one time.

 

VII. PREFERENTIAL POLICIES FOR WFOE in SHENZHEN
Most of the preferential policies have been abolished since January 1, 2008, but for some sectors preferential policies still remain there, such as hi-tech or environmental protection sectors. Contact CITILINKIA for more information at 86-755-82143422.

 

VIII. CITILINKIA SERVICE PROCEDURE
Step1: let clients fill out the application form (sign the agreement);
Step2: Confirm the company name, business scope, registered capital and shares;
Step3: Check the required documents for the clients;
Step4: Pay the services;
Step5: Prepare for the statutory documents for the investors to sign personally;
Step6: Forward documents to related government departments;
Step7: Keep clients informed of processing.
Step8: Finish processing in 30-50 working days;
Step9: Collect the documents and items and settle the balance if any.

 

X. DOCUMENTS REQUIRED FOR THE TRADING ENTERPRISES
Part one, documents needed to be prepared from abroad as follows
1. Copy of the business license or certificate of incorporation of parent company;
2. The original and copy of identification documents (ID card, passport) of legal representative, and eight color photos;
3. Two original bank reference letters (from investor's bank) indicating foreign investors' creditability, issued within 6 months in either English or Chinese version;
4. Lawyer’s legalization or notarization which should be endorsed by local China Embassy or Consulate
5. Latest annual auditing report if the parent company has been set up for more than one year.
Part two, documents needed to be prepared from Shenzhen as follows
1. One proposed name (in Chinese), and provide two or more alternative names in case the first name is not available.
2. Detailed information about the business scope and intended registered capital;
3. Detailed information of legal representative, shareholder, director, monitor, manager) 
4. The lease of commercial office between lesser and lessee needed to be endorsed by the Housing Management Authority. The lessee should be acted by shareholders, directors, legal representative, monitors or manager. The area required is no less than 30 ㎡ and for commercial use only with more than one year’s rent.

 

XI. DOCUMENTS REQUIRED FOR THE MANUFACTURING ENTERPRISES 
Item 1 - 9 the same as above
10. Manufacturing address: house property certificate or the lease of industrial workshop (two original copies of lease with signature and endorsed by Housing Management Authority. The area is required no less than 200㎡ and for manufacturing use only with more than one year’s rent.)
11. Project reports are necessary for the approval by the relevant government department, such as, business service, environmental and fire departments. The safety standard of manufacturing area should reach the required standard set out by the Fire Department and Environmental Protection Department.

XII. DOCUMENTS REQUIRED FOR THE FOREIGN INDIVIDUALS’ ENTERPRISES
1. Original document & copy of identification documents (ID card, passport) of Chinese company's legal representative, directors, monitors and managers;
2. Local lawyer's legalization or notarization of the investor’s passport endorsed by the Chinese embassy or consulate in the investor’s country;
3. Eight color photos of the legal representative;
4. Two original bank reference letters (from investor's bank) indicating foreign investors' creditability, issued within 6 months in either English or Chinese version.

 

XIII. OUR SERVICES
Service charge: RMB18000.CITILINKIA provides one-stop and tailor-made services for foreign companies which would like to set up WFOE in Shenzhen China.
CITILINKIA package services include: 7 copies of Approval document; 2 copies of original articles of association signed by members of the Board and with company chop; Both original and duplicate copy of certificate of approval; Both original and duplicate copy of business license; 4 chops for different use; Seal carving registration card; Bank account documents; Both original and duplicate copy of Organization Code License & card; Registration license and form of National &Local Administration of Taxation; Foreign exchange registration license and approval certificate; Customs declaration registration certification; Financial Registration For Enterprises With Foreign Investment.

 

XIV. FOLLOW-UP
CITILINKIA can provide a series of follow-up services to customers, such as bank account opening, CPA report, bookkeeping, auditing, monthly tax return and tax layout, annual return services, financial planning and China market study, Other services include domain name registration, webpage design, website promotion, China trademark registration, Work Permit, Residence Permit, etc.

XV. PROCESSING TIME NEEDED
For manufacturing enterprise: it takes 50-60 working days to finish the processing before we get required documents ready, especially the approval papers from the fire service department & human environment committee.
For the trading and service enterprise: it takes 30-40 working days to finish the processing before we get required documents ready.

 

XVI. CITILINKIA ADVANTAGES
1. CITILINKIA has established a global service system with 38 branches and 3000 cooperators worldwide, as well as in excess of 20,000 reliant clients globally. You can find one CITILINKIA always beside you.
2. CITILINKIA is staffed with a strong professional team of lawyers, accountants, engineers, designers and consultants providing tailor-made and all-in-one service.
3. There is a B2B business platform available for the international buyers and sellers of SMEs, www.ono-bbb.com.
4. CITILINKIA is the best partner with international banks, financial institutes. CITILINKIA also provide PIPO service.
5. CITILINKIA is in conformity of the standard of ISO9001/2008. That means the service quality is guaranteed.

 

XVII. IMPORTANT HINTS
1. Because of language difference, all the documents submitted to the Chinese government should be translated into Chinese and endorsed by the appointed translation agency.
2. CITILINKIA is responsible to inform the clients for the collection of the company kit at the designated office. If the clients fail to collect the company kit within the mandatory three month period without reasonable excuse, the client will be regarded as forfeiting the right to the registered company; CITILINKIA can dispose the company as it wishes.
3. Make sure to get the formal invoice from the lesser after office leasing is done.
4. The follow-up business services are not included in the service package, and are subject to further charge according to the clients’ requirements.

 

XVIII.  CONTACT US
Hong Kong Add: Unit702-703, 7/F Fourseas Bldg, 208-212 Nathan Road Jordan Kowloon, Hong Kong
Shenzhen Add: UnitD, 23/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu , Shenzhen, China
HK TEL: 852-27826888     SHENZHEN TEL:  86-755-82143422