- Wealth Management
- About Us
Due to the strong economic boom in China in the past years, a great amount of foreign investors have and continue entering into the China market wishing to have a share of the growth. One of the most commonly used methods to enter the China market is to establish a WFOE (Wholly Foreign-Owned Enterprise). WFOE in Mainland China is a limited liability company wholly owned by foreign investor(s) and RMB has to be its registered capital. The registration process is famously known to be very complicated and time consuming. We work with our network of affiliates in Mainland China to ensure that we get to every detail of the formalities.
One of the most important issues covered in the project documentation is the business scope of the WFOE. Business scope is narrowly defined for all businesses in China and the WFOE can only conduct business within its approved business scope, which ultimately appears on the business license. Any amendments to the business scope require further application and approval. Inevitably, there is a negotiation with the approval authorities to approve as broad a business scope as is permitted. General business scope usually includes, investment consulting, international economic consulting, trade information consulting, marketing and promotion consulting, corporate management consulting, technology consulting, manufacturing, etc.
Registered capital is the initial investment into a company that is required to fund its business operations until it is self-sustainable. The absolute minimum capital requirements of a WFOE under Chinese law are RMB30,000 for multiple shareholder companies and RMB100,000 for single shareholder companies. In practice, however, the official requirements for registered capital vary by industry and region and can be far greater than the above figures.