China Question & Answers


China Question & Answers

Question 1: What is a WFOE?

A wholly possessed foreign enterprise is known as a WFOE. Such a limited liability Chinese company which is owned by a foreign investor(s) with the foreign money.

Question 2: How WFOE is structured?

Directors, shareholders, general managers, supervisors and legal representatives constitutes the assembly of a WFOE.

Q 3: What is the required share capital for a WFOE? How much money should I contribute initially?

The share capital and investment money depends on the category of business. Except the special business, there is the requirement of share capital to be RMB100,000. But, to start business and to register WFOE, you must deposit RMB15,000 initially.

Question 4: What are the allowed business activities via WFOE?

All business operations can operate in China, however special corporate setup demands special authorisation and high capital. We provide application reviewing services and look forward to assisting you.

Question 5: How WFOE can be registered?

Please visit:

https://www.chuilaiandcocpa.com/china-company-formation

then go to the “Registration of WFOE in Szqh Shenzen Free Trade Zone” and all the procedural requirements will be in front of you.

Question 6: Tell me about incorporation fee of WFOE

To know it please visit:

https://www.chuilaiandcocpa.com/china-company-formation

then click on the “Incorporation Fee”.

Question 7: Tell me about documentational requirements

Please go to:

https://www.chuilaiandcocpa.com/china-company-formation

then go to the “Registration of WFOE in Szqh Shenzen Free Trade Zone” here you will have all the required information.

Question 8: What is the incorporation duration?

It takes about one month for WFOE incorporation.

Question 9: Which bank accounts can be opened in China?

No restriction exists on the opening of bank account. For the right bank, we suggest that you provide us with your application form so that we can suggest the perfect bank to you.

Question 10: Which procedures are to be adopted to open a bank account in China?

Please go to:

https://www.chuilaiandcocpa.com/china-company-formation

then go to “Registration of WFOE in Szqh Shenzen Free Trade Zone” and you will have all the requirements of opening a bank account.

Question 11: Which facilities does banks offer in China?

General facilities like, multi-currencies transactions, internet banking and company withdrawal are available to be used. Through the internet banking you will be able to access and operate your banking account, anywhere in the world.

Question 12: What papers will I have after WFOE incorporation?

You will have following documents, after incorporation:

  • Issued Business license of the State Administration of Industry and Commerce.
  • Chops made and issued by the Public Security Bureau.
  • Issued Organization Code by the Technical Supervision Bureau.
  • Issued Tax certificate by the Taxation Bureau.
  • Issued Financial Certificate license by the State Administration of Foreign Exchange.
  • RMB or Foreign Currency account.
  • Capital Verification report made and issued by the Chinese auditor.
  • Import or Export License.
  • Value Added Tax License.
  • License of Statistics.

Question 13: Which VAT Status a new WOFE enjoy?

A newly incorporated WOFE will have a “small taxpayer” VAT Status. For more details, please go to:

https://www.chuilaiandcocpa.com/china-company-formation

Question 14: How to change VAT Status?

It is quite easy to change the VAT Status. We can do this on your behalf to upgrade your VAT Status to the status of General Taxpayer.

Question 15: What type of tax system does China adopt?

To know it please go to:

https://www.chuilaiandcocpa.com/china-company-formation

Question 16: How much money is required?

To know about all the taxes you need to pay in China please go to:

https://www.chuilaiandcocpa.com/china-company-formation

Question 17: Please tell me about the reporting obligations?

Please go to:

https://www.chuilaiandcocpa.com/china-company-formation

Question 18: Can office be rented?

You can easily rent a corporate workplace in China.

Question 19: What sort of employees are allowed to be hired in China?

You are independent in employees hiring. Whether to hire a local or overseas employee, it’s totally upon your discretion.

Q 20: Is it possible to get VAT refund?

Yes, it is possible to get VAT refund.

Question 21: How can I send home remittances to my hometown?

You need to pay all applicable taxes and after paying them you will apply for the clearing out. After getting the clearing order from Chinese authorities, you can submit this order to your respective bank and after formal procedure, you shall be able to remit desired money to any banking or commercial account in your hometown.

Question 22: How would I be helped, if I cannot speak Chinese?

We will provide you with a translator who will provide you assistance in formation process and other matters, throughout your visit in China.

Question 23: What facility would you be able to provide me if I can neither read nor speak Chinese? 

In case you need our help in this issue, please let us know in time. You will find our staff once you get out of China Customs office and then he/she will escort you to the hotel and support you in all matters with the translator.