Establish a legal entity as a Representative Office (RO)
or Wholly Foreign Owned Enterprise (WFOE)…
SBE will guide you throughout the entire process!
A Representative Office (RO) is the most basic form of foreign investment and can be very useful, and in some cases even necessary, for most administrative decisions concerning the establishment of a business. Examples hereof include the renting of an office space, the employment of Chinese personnel, the opening of bank accounts in name of the company, etc.
The advantage of establishing a RO can be found in its inexpensiveness (There is no obligation to bring in any type of capital), the simplicity of the procedure as well as in its short timeframe. It will, however, not be able to engage in any direct business activities (Except if there exists a bilateral agreement between China and the home country of the foreign company establishing the RO, which explicitly states that ROs established by companies of both countries do have the authority to engage in direct operational activities).
In any case, SBE will support you throughout this process. It’s up to you to define the scope of our support to your organization, from setting up the RO to train & manage your resources as in a SBE Team Development solution, but in this case, under your own company’s organization.
How much does it cost?
Find here an approximate of the costs (in Chinese Yuan) required to open a Rep Office in Ningbo. We can send you a formal quotation at any time in order to let you know the specifics and the most updated costs for this and other cities around China.
|Service||Government Registration Fees||Setup Fees|
|We take over the entire process:|
– Documents review & preparation
– Business License application
– Code of Organization application
– Tax Office Certificate application
|Approx. 1,200 Yuan||5,000 Yuan|
|Accounting Service|| Official Registration 1,000 Yuan|
Monthly Reporting 600 Yuan
|HR Recruitment|| – 1 month salary|
if annual salary < 60,000Yuan before tax
– 18% of annual salary
if annual Salary is more than 60,000 Yuan before tax
|HR Hiring and Maintenance||170 Yuan/Resource/Month|
|Foreigner Visa Application|| Ningbo example (for other cities contact us)|
– 3,000 Yuan
in Haishu, Jiangdong, Jiangbei District
– 4,000 Yuan
in Yinzhou, Beilun, Zhenhai District
|Address, account, name modifications or cancellations||By case|
The Wholly Foreign Owned Enterprise (WFOE or WOFE) is a Limited liability company wholly owned by the foreign investor(s). In China, WFOEs were originally conceived for encouraged manufacturing activities that were either export orientated or introduced advanced technology.
However, after China’s entered the WTO, these conditions were gradually abolished and the WFOE is increasingly being used for service providers such as a variety of consulting and management services, software development and trading as well. With that, any enterprise in China which is 100% owned by a foreign company or companies can be called as WFOE.
WFOE has great potential in China as companies seek new markets, executives say that by 2014 China will be the world’s top investment destination.
The registered capital of a Wholly Foreign Owned Enterprise (WFOE) should be subscribed and contributed solely by foreign investor(s). A WFOE does not include branches established in China by foreign enterprises and other foreign economic organizations. The Chinese Laws on WFOE do not have a clear definition of the term of “branches”. The term of “branches” should include both the branch companies engaged in operational activities and representative offices, which are generally not engaged in direct business activities. Therefore, branches and representative offices set up by foreign enterprises are not WFOE.
How much does it cost?
Find here an approximate of the costs (in Chinese Yuan) required to open a WFOE in Ningbo. We can send you a formal quotation at any time in order to let you know the specifics and the most updated costs for this and other cities around Chine.
|Service||Government Registration Fees||Setup Fees*||Capital|
We take over the entire process:
-Documents review & preparation
|Approx 800 Yuan||9,000 Yuan||Minimum 100,000 Yuan, capital can be put within 6 months after registration.|
* Applicable only for Service and Consulting companies. For WFOE with Imp.&Exp. License, there is an extra of 4,000 Yuan for the Setup Fees, and we suggest 500,000 Yuan as capital for it to be quickly approved by government.
In the case you want to setup a Consulting/Service WFOE first and later on you require the Imp.& Exp. license, the fees to do that change are 5,000Yuan.