How Foreign Company start business in China

S & F CONSULTING FIRM LIMITED is an international business consultancy firm incorporated as private limited company in Bangladesh.

Lower Cost 

Contact information: 

China

Beijing, Shanghai

Email: contact@sfconsultingbd.com

www.sfconsultingbd.com

Bangladesh

Corporate Office, Dhaka, Bangladesh

Email: contact@sfconsultingbd.com

www.sfconsultingbd.com

Mobile: +880 01790220729 or, +880 01790220728

Skype: forhadhossain79 , sfconsultingbd

Service area:

1. Foreign company registration ( 100 % foreign owned share, Joint Venture, Branch/ Liason/ Virtual office)
2. Legal
3. Accounts Audit
4. Income Tax
5. Company Secretarial

We are all Countries in Asia

  Afghanistan, Armenia, Azerbaijan, Bahrain, Bangladesh, Bhutan, Brunei, Burma (Myanmar), Cambodia, China, Georgia,  Hong Kong, India, Indonesia, Iran, Iraq,  Israel, Japan, Jordan, Kazakhstan, Korea, North, Korea, South, Kuwait, Kyrgyzstan, Laos, Lebanon, Malaysia, Maldives, Mongolia, Myanmar, Nepal, Oman, Pakistan, Philippines, Qatar, Russia, Saudi Arabia, Singapore, Sri Lanka, Syria, Taiwan, Tajikistan, Thailand, Turkey, Turkmenistan, United Arab Emirates,  Uzbekistan, Vietnam, Yemen  

Types of Business Presence in China:

Before starting up a business in China, you have to know what the options are. Foreign Investors generally establish a business presence in China in one of five ways: 1. Wholly Foreign Owned Enterprise (WFOE); 2. Partnership Enterprise (PE) 3. Representative Office; 4 . Joint Venture; and 5. Hong Kong company. 

Company Registration Services:

RMB 100,000~ RMB 500,000 (approx. 10,000 ~ 50,000 EURO) is the minimum registered capital for Consulting, Service or Hi-Tech WFOE registration in Shanghai, Beijing, Shenzhen. Different cities of China have different policies on minimum registered capital.

WFOE establishment in China became the first option for foreign investors (instead of Rep. Office) in China. 

Approx cost:

Starting from USD 3,000 you can get your China representative office (RO) registered. The package includes office and tax registration, bank account opening, work permit, 1 year residence visa and tax consulting service for the first one month;

- Starting from USD 4,000 you can get your Wholly Foreign owned Enterprise (WFOE) registered. The package includes all official applications( i.e. business license application, tax application, bank account application)

Advantages of WFOE

The advantages of incorporation a WFOE, compared with other types of enterprises, include, but not limited to:

1. Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner;
2. Ability to formally carry out business rather than just function as a representative office and being able to issue invoices to their customers in RMB and receive revenues in RMB;
3. Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
4. Protection of intellectual know-how and technology;
5. For Manufacturing WFOE, no special requirements for Import / Export license for its own products
6. Full control of human resources
7. Greater efficiency in operations, management and future development.

Registered and Paid up Capital

Registered Capital: USD$140,000 is a good idea for all kinds of WFOE, with USD$ 140,000 investment it's easy to get approved. Initial Paid-up would be 20% of the registered capital, the balance should be remitted within 2 years.

Registered capital is the amount that it's required to run the business until it can break even - the 'registered capital' is a guideline only. If you do looking for a minimum registered capital, for instance RMB 30,000 (which is impossible to establish a WFOE in China) this means you will run out of money pretty soon, which leads to increased costs in reapplying for permission to increase capital, additional licensing fees and renewals of business licenses and so on. The WFOE needs funding via it's registered capital until it's about to support itself from it's own cash flow.

However the amount of registered capital is dependent upon factors like Scope of Business and Location. In reality local authorities will review the feasibility study report (and check the lease contract) approve the investment on a case-by-case basis; reduced registered capital could be negotiated in some cases.

The minimum registered capital guides for various industries according to our practice in China, for instance Beijing, Shanghai[100k RMB registered capital Sample], Guangzhou, Shenzhen, Hangzhou, Dalian, Ningbo are given below:

Consulting WFOE	RMB 100,000 ~ RMB 500,000
Service WFOE	RMB 100,000 ~ RMB 500,000
Hi-Tech WFOE	RMB 100,000 ~ RMB 500,000
Trading WFOE / FICE/ Retail	RMB 500,000 ~ RMB 1 million
Food & Beverage WFOE	RMB 500,000 ~ RMB 1 million
Manufacturing WFOE	RMB 1 million or USD 140,000

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