BC Partners Consulting Limited

What is a Wholly Foreign Owned Enterprise ? ​ A Wholly Foreign Owned Enterprise is a limited liability company wholly owned by a foreign individual or a foreign enterprise in China. The three major characteristics of a WFOE could be summarized as “limited liability company”, “the foreign individual or the foreign enterprise fully controls the WFOE” and “the shareholder of the WFOE must be the foreign passport holder or overseas company (including Hong Kong and Macao)”. According to the business the WFOE engages in, China WFOE could be divided into Trading WFOE, Consulting WFOE, F&B WFOE, Manufacturing WFOE and etc. Based on the Free Trade Zone (FTZ) as the registered address, China WFOE could be split into Guangzhou FTZ WFOE, Shanghai FTZ WFOE, Shenzhen FTZ WFOE and etc. Advantages with a WFOE Shareholders merely undertake limited liability; Foreign investors enjoy the wholly control of the company; The business engagement in China enjoys the protection of China law;...

Shanghai City In 2015, Shanghai's GDP dominated the city list in China, and ranked second only to second to Tokyo, Japan in Asian cities. Shanghai is one of the world's most famous financial centers, and one of the world's largest metropolitan areas. Shanghai port has the world's largest cargo throughput and container throughput with the reputed international port. Shanghai owns the first free trade zone in China - Shanghai pilot free trade zone, which brings more new vitality to the economic development. How to Start a Shanghai Company？ Unlimited Liability Company An unlimited liability company means the company’s shareholders bears unlimited liability for the debts of the company. Unlimited company is the initial form of the company's registration structure, it is available to make full use of the advantages of shareholders of personal credit to trade or borrowing. The major disadvantage is that shareholders undergo big risk and have difficulties in f...

Shenzhen City As the window of China's reform and opening up, Shenzhen is the first special economic zone established by China's reform and opening-up policy. Shenzhen came in second as the most economically competitive cities in the world in 2016. As the seven strategic emerging industries, the Internet, new materials, biology, new energy, energy conservation and environmental protection, cultural creativity, new generation of information technology and the four future industries i.e. marine economy, aerospace, robot wearables and intelligent equipment and life health are gaining momentum. How to Register a Shenzhen Company? Representative Office(RO) Representative offices (RO) refer to the business liaison offices of the parent companies established by foreign companies in China. The business scope of the RO is restricted to the engagement of non-profit business activities related to foreign (regional) enterprises. In other words, representative office has no leg...

To further standardize the VAT invoice management, optimize the tax service and meet the needs of the taxpayers, notice on the Management of VAT General invoices hereby announced as follows: First, Adjust VAT general invoice's (folding invoice) invoice code The invoice code for the general VAT invoice (folding invoice) is adjusted to 12 digits with encoding rules: 1 to 0, 2-5 stands for the provinces, autonomous regions and municipalities directly under the central government and cities under separate state planning, 6-7 stands for the year, 8-10 stands for the batch, 11-12 stands for invoice types and sheets, including 04 stands for two-sheets general VAT invoices (folding invoice), 05 stands for five-sheets general VAT invoices (folding invoice). The VAT general invoices (folding invoice) of 10 digits invoice code that in tax authority's inventory or with the taxpayer can continue to use. Second, General VAT invoices printed with the name of the company (folding in...

Based on PRC Company Law and PRC Accounting Law, each foreign-invested company, such as China Wholly Foreign Owned Enterprise (China WFOE or China WOFE) , Joint Venture (JV), Representative Office (RO or Rep Office) all required to do China company's accounting and bookkeeping on time. When to Apply for Tax Registration? Please note it that although China company’s business license, local tax certificate and national tax certificate have been combined into one. China companies should apply for tax registration within one month after the issue of the business license. When to Apply for General VAT Taxpayer or Small-scale VAT Taxpayer? Chinese enterprises shall apply for the general vat taxpayer or small-scale vat taxpayer application within one month from the date of applying for the tax registration. When to Start Filling Taxes? In the month of tax registration and taxpayer application. When to Do Company Annual Renew? Chinese companies should take part in the an...

What is Company Annual Report in China? As a means to corporate regulatory, one of the obligation that company in China must bear after registration is the submission of company annual report within a specific period. China brings in the corporate credit system which means all the annual reports are available to the public. What if Fails to Submit Company Annual Report ? A lifetime record of “Poorly Preforming Company List” Have difficulties to do company alternation and cancellation. The company will eliminate the qualification for working visa application, renew or cancellation. Legal representative of the company cannot even buy air tickets, train tickets within China. Legal representative cannot serve as the management position in other company. Have a possibility to face fines. Why Should Prepare the Annual Report in Advance? The numbers of company registered in China is increasing each day. The end of a year is always busy for companies. Plus, with the non-st...

One inevitable license should be applied for your trading company in China is the China Import Export License. ​ The most common investing vehicle foreign investors in trading industry adopts in China is the Trading WFOE (Wholly Foreign Owned Enterprise) . Import export license refers to the qualification of import and export enterprises to carry out the import and export business. The application for import and export right needs to pass a complicated examination and approval process. Certificate of Approval  When a foreign-invested enterprise is established, it shall be examined and approved by the business department. The Certificate of Approval is the first license should be issued as part of the Import Export License. Customs Declaration Unit Registration Certificate Trading WFOE must apply for the qualification of customs clearance. Registering with the customs is the precondition for the customs declaration. Entry and Exit Inspection and Quarantine Ins...

An enterprise name shall be clearly marked on the business license in China. Enterprises shall choose their own names according to China Company Law and apply for China company formation . The enterprise enjoys the right of name since its establishment. ​ Rules for picking china company's name The name of the enterprise shall not be the same with the name of other companies; The name of the enterprise shall be in accordance with the Chinese characters conforming to the national standard, and shall not be used in alphabetical or Arabic numerals. China company’s name shall be translated into foreign language and shall be translated and used by the enterprise according to the principle of literal translation. The name of an enterprise shall be composed of administrative divisions, names, industries and organizational forms. In addition to the enterprises established by the state council, the names of enterprises shall not be labeled as "China", "China",...

Business China offers china company registration services including China Wholly Foreign Owned Enterprise (China WFOE or China WOFE) , Joint Venture (JV), Representative Office (RO or Rep Office). The first thing comes across after the China company registration is to open business bank account. Business China summarizes 7 frequently asked questions regarding China corporation bank account opening. How many times legal representative should present in China for bank opening? ONLY ONE TIME is required. If the legal representative cannot make the trip, please contact us for legal representative nominee service. What information I should give to my client if I need to collect money from them? We will email you all needed information when the account is ready. Please feel free to contact us if you need any assistance. My client request for official invoice from me after he wired money to my account. Can you help? Yes, as long as your Chinese client wired money to your busi...

On your way to form a Wholly Foreign Owned Enterprise(WFOE) in China, you will be requested to name one legal representative to be listed on the business license. We will elaborate the legal concept, the appointed requirement and the legal liabilities of the legal representative in China company registration. The Legal Concept of Legal Representative According to the Provisions of the General Provisions of the Civil Law of PRC, in accordance with the provisions of the Articles of Association of the law, the legal representative is the person who represents the company to take in charge of the exercise of the establishment's functions (article 38). The legal representative system is a kind of legal representative system which is derived from the traditional leadership system of China's state-owned enterprises. China adopts and implements a single legal representative system. Generally, the legal representative and the enterprise do not need to sign labor contract, th...

Registration address has long been the indispensable part of the China company registration. As a foreign investor, if you want to have your China WFOE (Wholly Foreign Owned Enterprise) established and maintained with the management cost as low as possible to reduce start-up costs, our registration address could be a suitable selection. It is important to note that the registration address we provide is not the virtual address, but a physical office address project to suit the market to help our clients to easy their business expanding within China. Advantages of Registration Address Quick Company Formation Substantial Cost Cutting Save Legal Representative's Trip to China Real Time Saving Available Cities for China WFOE's Registration Address Guangzhou Shenzhen Shanghai Foshan Relative Documentation Provided by Business China Lease Contract Property Ownership Certificate Record Certificate & Others Facts We adhere to the global insig...