http://www.tommyconsulting.com Setting up wholly foreign-owned enterprise WOFs in Shenzhen China, Shenzhen Company Registration Procedure and Document Required.

1. Setting up wholly foreign-owned enterprise WOFEs in Shenzhen China，Shenzhen Company
Registration Procedure and Document Required
WFOE stands for wholly foreign owned enterprise, which is a limited liability company wholly
owned by either a foreign legal entity or a foreign natural person. The foreign investors may be
foreign enterprises or individuals
.
Wholly owned foreign entities (WOFEs) are the vehicle of choice for most people and companies
doing business in China. It is less complex than a joint venture (JV) and allows you to concentrate
on what your employees are up to as opposed to your partners. It is required to register as a legal
person who is restricted to certain businesses. The enterprise is able to implement strategies that
effectively conform to the interests of the parent company aboard. Moreover, technology and
know-how are given better protection.
No. minimum registered capital is required for WFOEs with scope of business of consulting,
Trading, retailing, information technology etc. in China. There are minimum registered capital still
required for some industries for instance: Banking, Forwarding etc Since China still maintains
foreign currency control policy, it's still advisable to choose registered capital within RMB 100,000
~ RMB 500,000 as the minimum registered capital. Companies can now determine how much
capital will be required to maintain their operations and must simply ensure that they meet those
targets within a period of 10 years.
Advantages of WFOE
1. Independence and freedom to implement the worldwide strategies of its parent company
without having to consider the involvement of the Chinese partner;
2. Ability to formally carry on business rather than just a representative office function;
3. Issue invoices to their customers in RMB and receive RMB revenues. Convert RMB profits to US
dollars for remittance to their parent company outside.
4. cheap labor, which can lower your cost;
5. not required to share profits with Chinese counterpart;
6. Greater efficiency in its operations, management and future development.
Shenzhen is the best choice for business-doing in China. Shenzhen is situated in the Pearl River
Delta. It is the first Special Economic Zone since China carried out reform and open-door policy 30

2. years ago. Shenzhen has an area of 1953 square km2 . Shenzhen is the best city both for living
and working in China the fastest growing city in the world. In Shenzhen you can enjoy sound
infrastructure and nice industrial chain for trading, manufacturing and value investment. Since
Shenzhen is bordering Hong Kong, you can take lots of advantages and opportunities from “one
country, two systems” policy. With sound infrastructure and easily recruited many talented
personnel in Shenzhen, Foreign company can take this advantage to set up WOFEs in Shenzhen as
china market entry strategies
Registration process
The application process to create a company in China generally takes three to six months. The
establishment process varies based on the WFOE form and the planned business scope. For
example, a Manufacturing WFOE will require an environmental evaluation report, and Trading
WFOEs will need to undergo customs/commodity inspection registration. The application process
can be divided into two parts:
• Pre-registration – what happens before the company formally exists
• Post-registration – what happens after the company formally exists
Pre-registration
1. Name registration
The company name can be translated from English by meaning and/or phonetically. Verification
of feasibility of the proposed name by the AIC will take a few working days. Only the Chinese
name will be legally binding – the English name is not legally relevant for Chinese authorities.
Note that the words “China” and “International” cannot be freely included in the Chinese
name, and are subject to further requirements.
2. Issuance of approval certificate and temporary business license
The authorities will issue the approval certificate and temporary business license after assessing
the following documentation:
From the investor:
• Business license (certificate of incorporation – depending upon locations, this may need to
be notarized in the investor country of origin, and then translated into Chinese);
• Bank statement to demonstrate credit worthiness (from relevant bank in country of origin and
translated into Chinese); and
• Photocopy of passport of the legal representative of the investor company.
From the new company:
• About the new business – Name of the company, business scope, registered capital,
business term, lease contract;
• About the legal representative – Photocopy of passport and passport-size photos;
• About the directors – CVs, photocopies of passports, and passport-size photos;
• Feasibility study report – Outlining the estimated cash flow for the next three years;
• Articles of association; and
• Environmental protection evaluation report (if applicable).
The approval certificate will be issued by the local office of the MOFCOM. Upon issuance, there is
a 30-day limit for registering the company with the AIC, which then issues the temporary
business license.

3. Post-registration
Following the issuance of the temporary business license, the WFOE would need to perform a
number of formal registrations at various Chinese government entities, including applying for
carving various seals (or chops) in order to authorize documents on behalf of the company, as
well as opening an RMB account for managing daily operating expenses and a foreign capital
account for receiving foreign currency.
Compared to registering a business in most Western countries, registering a business in China is
challenging work filled with paperwork and bureaucratic red tape. It is practically impossible to
properly complete the registration process without a qualified agency. Be sure that the agency is
qualified and the agency has good connections and relationships with the various local
authorities, and that they possess comprehensive knowledge about the numerous important
aspects involved with legally and properly registering a WFOE. Since 2006, Tommy China
Business Consulting has been focusing on consulting services for our clients to set Up WOFE in
Shenzhen. TCBC will manage all aspects of incorporation to get you a business license in
Shenzhen China
Please visit Http://www.tommyconsulting.com