There are more and more people who choose to establish China WFOE (Wholly Foreign Owned Enterprise) instead of running regular business in China. But then, there are a few things to be aware of. The business scope is one of the first things to pay attention to. And the list goes on…
We know that most foreigners are not aware of the Chinese business system, so this is when we step in to make the difference. You do not have to waste years educating yourself on it and learning the hard way. Instead, leave your business venture setup in our hands and focus on what really matters – running it.
When it comes to the scope, it can be interpreted for pretty much any business in China. When you establish Chinese WFOE, you have to know that your business operations must be related to it. Once this scope is set, the only legal way to conduct business is related to what you have declared within the stated scope. Other than that, once you are done, the scope will also appear on the business license.
From our point of view, this business scope has both positive and less positive parts. In other words, it does have some advantages too, but it also has some restrictions. With these aspects in mind, it represents one of our main considerations when completing the application.
It must be thoroughly defined in small details, but also respected when conducting business. Also, it needs to be approved in the actual application. It is not permanent though. Most business managers know that they need to adapt with time. Therefore, the scope can be properly changed even after you establish the WFOE, but then again, it needs to go through some farther applications, as well as some approvals.
There is nothing to worry about, as we will help with both current and farther updates.
Make sure that the business scope is as narrowed (yet detailed) as possible, but also take our suggestions into consideration. There are some rules regarding the general purpose of your business. For example, some of the most common general scopes include marketing, promotion, management consulting, technology consulting, international economics, manufacturing and so on. If interested to establish Chinese WFOE, you just have to decide on the subject of your operations.
We know that the scope can be pretty general, so you are less likely to face any problems. Even if you make any mistakes, we will fix them before sending your applications. According to most statistics regarding our past WFOE registrations, it looks like most new businesses have something to do with wholesale, retail and trading industries, especially after China has entered the WTO.
Long story short, business documents when you establish Chinese WFOE are not too complicated. We will not bother you too much, but let you focus on establishing the business plan. You just need to list the activities conducted in China. Why is this scope important? Easy – it will help in the nature of business classification. This classification is directly proportional with the minimum requirements in terms of capital, taxes, invoices and so on.
It sounds simple, but those who establish Chinese WFOE with no experience may face a lot of frustration. The scope is crucial when you establish China WFOE, so we never overlook it. We highly recommend relying on our service to establish WFOE, as we are more familiar with the laws and regulations – both relevant and small details.
In the end, WFOE is just like having your own company in China. Do it today, but avoid diving in without the right information.