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Showing posts with the label setting up a company

What's China WFOE's Latest Capital Requirement

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...