BC Partners Consulting Limited

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.  China Trading Company's Certificate of Approval When a foreign-invested enterprise is established, it shall be examined and approved by the business department. The Certificate of Approval for China company incorporation is the first license should be issued as part of the Import Export License. China Trading Company's Customs Declaration Unit Registration Certificate Trading WFOE must apply for the qualification of customs clearance. Registering with the customs is t...

Although Representative Office Registration in China is generally agreed as the easiest entity for foreigners to form in China, why now so many investors choose not RO but WFOE or Joint Venture (JV)? Basically, there are two major issues that make working with RO is unattractive: Many clients presumed that they can switch a RO to a WFOE, then they "can start making money" in China. Well, the truth is the Switch actually involves an expensive shutdown and a brand new WFOE incorporation. Even though RO are not allowed to make profit in China, they are nevertheless subject to taxation. There is a 10% tax on gross expenses of RO, which could be quite high on most cases. A Representative Office (abbreviated RO) is the resident representative office of foreign enterprises in China to engage in indirect business activities within the territory of China, on behalf of the foreign enterprises within the business scope. While, RO is not an independent legal entity as China WF...