(Source: https://pltfrm.com.cn)
Registering a Wholly Foreign-Owned Enterprise (WFOE) in China involves a multi-step process that requires careful planning and compliance with various regulatory requirements. Here’s an overview of the general process:
- Preparation and Planning:
- Define business scope: Clearly define the intended business activities of the WFOE, as this will determine the relevant licenses and approvals needed.
- Choose a location: Decide on the geographic location for the WFOE, as different regions may offer different incentives or have different regulations.
- Name Approval:
- Submit a name approval application to the local Administration for Market Regulation (AMR). The name must comply with Chinese naming conventions.
- Feasibility Study Report (if required):
- For certain types of projects, a feasibility study report detailing the project’s viability may be necessary.
- Documentation Preparation:
- Prepare necessary documents, which typically include:
- Application form for the establishment of a WFOE.
- Articles of Association.
- Identification documents of investors.
- Bank reference letters from the investor’s bank to prove creditworthiness.
- Lease agreement for the office space or factory in China (proof of physical address).
- Other documents as required depending on the business scope and industry.
- Prepare necessary documents, which typically include:
- Approval from the Ministry of Commerce (MOFCOM) or its Local Branch:
- Submit the application along with the required documents to MOFCOM or its local counterpart.
- MOFCOM will review and approve the application if all requirements are met.
- Business License Registration:
- After approval, apply for a business license with the local AMR.
- The business license is issued upon successful application, officially establishing the WFOE.
- Post-Registration Procedures:
- Apply for chops (official seals) for the WFOE.
- Open bank accounts (both RMB and foreign currency accounts).
- Register with the tax bureau and obtain a tax registration certificate.
- Register with the State Administration of Foreign Exchange (SAFE), if required.
- Complete social security and housing fund registration for future employees.
- Obtain any additional specific licenses or permits required for the WFOE’s business activities (e.g., import-export license, food safety license).
- Annual Compliance Requirements:
- Comply with annual auditing, tax filing, and other regulatory requirements.
- Ongoing Compliance:
- Adhere to Chinese laws and regulations in areas like labor, taxation, environmental protection, and industry-specific regulations.
It’s important to note that this process can vary based on the business scope, location, and specific requirements of local authorities. Additionally, the process can be time-consuming, often taking several months.
Given the complexity of the process and the need for navigating local legal and regulatory frameworks, it is highly advisable for foreign investors to work with local experts, including legal advisors and business consultants, who are familiar with the intricacies of establishing and operating a WFOE in China.
PLTFRM is an international brand consulting agency that works with companies such as Red, Tiktok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries exports in China account for 97% of the total exports in Asia. Contact us and we will help you find the best China e-commerce platform for you. Search pltfrm for a free consultation!
