How To Register Trading Company In China

Opening a Trading WFOE in China

The Trading WFOE (wholly foreign owned enterprise) is essentially the same as a consulting WFOE with a different scope of business hence an eligibility for import & export licenses. This type of company is able to import and export many different types of goods including but not limited to: retail products, electronics, alcohol, food & beverages, medicine, baby formula and more.

The benefits of registering a foreign trade company in China: 

1. You can apply for a 13% VAT tax refund for exports and earn more profits! 

2. Signing procurement contracts with suppliers in China is more legally protected. 

3. To receive Payment from overseas more convenience. 

4. An office can be established in China to recruit local employees and facilitate communication with suppliers. 

5. Foreign shareholders can apply for long-term Chinese work visas and employment permits.

Basic Requirements on WFOE China Trading Company Registration

No Matter what WFOE type finally you need, below items are very important for your pre-consideration.

01 Shareholders

If the shareholder is individual persons, then his/her original passport need to be checked by government; If the shareholder is overseas companies, its official Certificate of Incorporation including articles of association need to be authenticated by China embassy or consulate stationed in the same country.

02 Company Name In China, 

All the WFOEs will have both English name and Chinese name, and government just paid more attention to check your Chinese company name, so you can decide English name directly as whatever you like, suggest ending with LIMITED. For English name, it could have China, Shanghai or even without country/ city name, more flexible for you; For Chinese name, you must follow the fixed name format with city name Shanghai in it if you register your company in Shanghai. Once Chinese company name approved, it’s only valid within 6 months before you applied for business license.

03 Business ScopePlease consider what business you’d like to do now and what’s your 5 years plan, then we will help evaluate to make perfect business scope for you. Anyway, it need follow “Catalogue of Encouraged Foreign Investment Industries” released by the State Council. If your business includes food, alcohol, medical instrument or hazardous chemical substance, it will cause special permit with long time, physical office and warehouse are required.

04 Registered Capital1) According to the newly amended company law released in Jan 2014, your registered capital is allowed to be contributed within 30 years after business license released, which was called the registered capital subscribed system.2) it’s the only legal way to receive foreign currency as registered capital to China without any tax, you can use your registered capital for your business operation purpose after completed the verification process at bank. If you indeed need capital to startup your business, please do make your budget and make it could the amount could cover your first 6 ~12 months ‘cost.3) During the 30 years period, you can decide whether contribute the capital to China. It’s flexible for you because you were protected by China Company Law.4) You can sell or close this company even without registered capital contribution.

05 Registered addressYou have two options for registered address.Option#1 is to rent physical office or shop directly as registered address, then all the licenses will be indicated with this address, all information is perfectly matched.Option#2 is to use virtual address for company registration. The key benefit is you can rent or change your physical office flexible in the future, and possibly get tax refund from the office provider / local district government.

06 Legal representativeYou can have only one legal representative for your company, this person is very important for now and future, because tax bureau and bank may request to meet your legal representative in person. Legal representative could be concurrently as executive director and General Manager.

07 SupervisorForeigner or Chinese both okay. Need your company supervisor’s passport copy, China mobile number and email address for registration purpose; Company Supervisor has right to check the financial affairs of the company and supervise company management team’s performance in order to protect shareholders’ benefit. For small-medium size companies, supervisor is for processing only, who will not really involve in your company management, no need to pay salary.Legal representative, executive director and general manager shall not concurrently hold the position of supervisor.

08 Finance responsible personFinance responsible person must be a Chinese. Need your Finance responsible person’s ID copy, China mobile number and email address for registration purpose; this person’s name could be changed after company established during tax registration at tax bureau.

09 Main contact PersonNeed this person’s ID card copy, China mobile number, email and contact address.

10 Photo of legal representativeNeed the half-length photo of legal representative taking with his passport.

原文来自邦阅网 (52by.com) - www.52by.com/article/154296