Company Registration & Maintenance
Categories of companies we may assist to set up are as follows:
---Wholly Foreign Owned Enterprise
Who Need to Set up a Representative Office?
As for those foreign companies, which have just entered into the Chinese market for tentative exploration, it’s advisable to open a representative office, which is the best solution available to them. The representative office set up by a foreign company in China is a business liaison agency acting on behalf of the parent company in China. Therefore, representative office is not an independent legal entity and cannot be engaged in business activities that result in direct profits. For instance, it cannot sign any sales contract. Nor can it receive any service charge, or issue any invoice or remit money out of the Chinese territory.
However, a representative office may open a bank account and be staffed to fulfill the purpose of performing business liaison. The parent company may sign contracts with a representative office’s clients and suppliers. Such business activities, however, may be carried out only in the parent company’s name rather than the representative office’s name; provided, however, that the representative office may act as a liaison to facilitate a lot of deals for the parent company.
• Low cost ( if compared with a wholly foreign-owned company )
• No required minimum registered capital and paid-in capital
• Simple accounting
• Allowed to apply for residence permits
• Simple registration and application procedures
• Allowed to undertake most business activities
• Not allowed to sign sales contract, issue invoice or generate profits in China
• Tax declaration on a monthly basis and tax audit on an annual basis
• The tax calculations are made on the basis of actual expenditures, with the tax to be determined at a certain ratio, which is about 10% and is less controllable
• The daily operating expenses and the foreign currency bank account are subject to the audit rules as expressly set forth by law.
The establishment of wholly foreign-owned enterprises
A wholly foreign-owned enterprise refers to any such enterprise that is set up within the Chinese territory with the capital contribution totally made by foreign investors (namely foreign companies, individual persons or partners, including those in Hong Kong, Macao and Taiwan). In general, such organization as of a limited liability company, namely a limited company, excluding, however, any affiliates, such as branch companies, offices and representative offices, which are set up by any foreign company or other economic organizations in China.
• Allowed to operate and generate profits in China; allowed to issue commercial invoices (a representative office is not allowed to do so)
• Allowed to apply for working residence permit for foreign employees
• Allowed to be engaged in the import and export trade and entitled to tax rebates
• Free and remarkably controllable tax amount; allowed to apply for recognition as of a general taxpayer
• The registered capital must be verified
• Lots of materials needing to be certified and submitted, takes relatively long time to go through the registration process and formalities
About 3-6 months.
Domestic companies to set up
As an international metropolis in South China, Guangzhou is one of the four first-tier cities in China and one of the national economic, financial and trading centers. It is an ideal city for investors at home and abroad to start a business in China. Our professional consulting team is capable of providing investors and enterprises from all over the world with feasible domestic company registration solutions, so as to save both your time and efforts.
Company Types for Foreigners to Choose
Foreigners from all over the world can register companies in China by choosing one of the following solutions.
• For those who possess a company anywhere except China ( but including Hong Kong, Macao and Taiwan), you can choose to set up a representative office or register a Wholly Foreign-owned enterprise (short for WFOE) in China.
• For those who possess no company anywhere (including China, Hong Kong, Macao and Taiwan), if you want to register a company in China, you may need to register a Hong Kong company first.