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;...

Foshan City As a nearby city to Guangzhou, Foshan is located in the heart of the pearl river delta and adjacent to Hong Kong and Macao. Foshan is an industrial city, its competitive industries focus on household appliances, equipment manufacturing, metal material processing and products, ceramic building materials, textile and garment, food and beverage, plastic products, electronic information, fine chemical and pharmaceutical industry, household products manufacturing. How to Register a Foshan Company? Name-checking As a China company, the Foshan company name is composed of “the administrative division + company name + industry characteristics + organizational form”. The English version of the Foshan company can be put on the stamp and the name card, not one the license. Business Scope Confirmation Business scope refers to the business operation and industries you want to engage in with this China entity, which is quite Chinese characteristic in some way. Nevertheless,...

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...

Guangzhou City ​Guangzhou, known as the "millennium commercial port" historically, has been one of the most important commercial centers in China. Guangzhou is close to the south China sea, neighboring the Hong Kong special administrative region and the Macao special administrative region. It is the south gate to the world. China's third big river, the pearl river, runs through the city of Guangzhou. As the international shipping hub, global aviation pivot and world science and technology innovation center, Guangzhou has attracted a total of 288 fortune 500 companies to invest nearly 800 projects in Guangzhou, of which 120 have headquarters or regional headquarters in Guangzhou. How to Register a Guangzhou Company? WFOE (Wholly Foreign Owned Enterprise) or WOFE (Wholly Owned Foreign Enterprise) is the most common vehicle for foreign investor to adopt in China company registration. As a limited liability company, WFOE can maximize the full control over the new es...

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...

Business China is a licensed leading firm in China specializes in China company registration . To better navigate the competitive China market entry and penetrating, Business China provides efficient services and service process. ​ 7 frequently asked questions about setting up a limited company in China, please check below. Am I required to go to China to get my China company started? 99% could be settled through email, the legal representative of the China company will need to come to open the bank account once the company has been established. So, you are not required to come to China physically to start China company registration. What is the capital injection requirements? China introduced “registered capital” concept for several years to better attract high-quality foreign investment. In other words, no injected capital needed in the first 15-25 years for the foreign-invested companies. What is the fastest way to set up a wholly foreign owned limited liability compa...

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",...

As a foreign traveler in China, you will find it is quite convenient to have your own personal bank account opened in China especially you can add your personal bank card to the Alipay or WeChat payment. As a foreign investor, you will have legitimate rights and obligations to open a business account after your china company registration . There are a lot of China local banks and international banks layout in China for you to choose from. Due to the convenience of E-document signing, and quick response between the bank and the tax burau, the significant Big Four state-owned banks are recommended for business account opening. The Big Four (Four large state-owned Banks):  ICBC (Industrial and Commercial Bank of China) ABC (Agricultural Bank of China) BOC (Bank of China) CCB (China Construction Bank) Firstly, prepare documents for business bank account opening. Business account types are RMB Basic Account and Foreign Currency Account. The RMB basic account is the a...

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...

What is Business Scope? ​Business scope is an indispensable part of China company formation , which is not the same for western countries in most cases. Business Scope is the scope of business products and services you can engage in. It is a legal boundary for the enterprise to conduct business inside China legally. Once the scope of business is approved and registered, the enterprise shall have the right capacity within this scope, and the enterprise shall also assume the obligation of not exceeding the scope of operation. To sum up, the approved business scope of the enterprise is the legal limit to distinguish the lawful operation and illegal operation of the enterprise. The Significance of Business Scope It is unfamiliar for many foreign investors that the business scope of your China company is closely related to invoices issue. In other words, the enterprises can only apply for the invoices under the specific business scope content. That is why to having a business p...

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...

When setting up a wholly foreign-owned enterprise (WFOE or WOFE) , you need to choose the right supervisor or the board of supervisors for your business. In order to prevent the board of directors and managers from abusing their power and damaging the interests of the company and shareholders, it is necessary to elect such the special supervisory organ – supervisor or the board of supervisors to exercise supervision functions on behalf of shareholders. Supervisor or the board of supervisors  Article 51 of the company law stipulates that limited liability company shall have the board of supervisors, and its members shall not be less than three. A limited liability company with a small number of shareholders or a smaller company may set up one or two supervisors without a board of supervisors. Supervisors shouldn't be the legal representative, manager or other senior management person). The term of the supervisor is three years. The term of the supervisor shall expire, and...

How to start a trading company in China as a foreign investor? The popular first-tier cities in China for company registration could be summarized as Guangzhou, Shenzhen, Shanghai, Foshan. China company formation in different cities could follow different policy guidelines. Business China summarizes and gives a detailed introduction about how to start China Trading import and export company registration. Business scope The first step of starting a China Trading Import - Export Company is to specify the major products scope and business operation scope. Business scope is not quite common in the western countries, it can be called quite Chinese characteristics. The business scope just need to list the major trading products and use summarized words and terms. It is worth notice that a trading company can engage in general related consulting business as well. Business Structure The second priority for setting up the China trading company should be the right business structure...

Wholly Foreign Owned Enterprise(WFOE) has long dominated the most popular investment business structure in China. Capital requirement is an indispensable part of China WFOE registration. Contributed capital refers to the enterprises capital should be injected from the bank account of foreign investors to the capital account of the China WFOE. The injected fund is used for China WFOE's operating expenses such as employees' salary payment, goods purchased and etc. To bring new vitality to Chinese economy and draw more high-quality foreign investment, China has put forward the concept of "registered capital" to replace the "contributed capital" since 2013. In other words, the WFOE's capital requirement can be vividly described as the figure listed on the business license with no need to do capital injection in short time. The characteristics of China WFOE's registered capital shall be summarized into 4 sides. No Minimum Requirement for China W...

To promote the development of the software industry in our country, strengthen innovation ability and competition ability of China's information industry, the state administrative department of copyright encourages software registration, and the software of registration shall be protected. ​ Software registration is divided into software copyright registration, software copyright exclusive license contract and transfer contract registration. The applicant for software copyright registration shall be the copyright owner of the software and the natural person, legal person or other organization that has inherited, received or received the software copyright. The applicant who is registered in the software copyright contract shall be the party concerned with the proprietary license contract or the transfer contract of the software copyright. Consult BC Partners Now.  Software Copyright Protection Under the computer software protection ordinance, the rights of softwa...