Requirements to open a WFOE in China
One of the problems that for many years we foreigners had to enter the Chinese market was how difficult it was to open a company without a Chinese partner, and many investors did not want to risk having a local partner because of the bad reputation these have. The option in these cases was to open a WFOE (“Wholly Foreign-Owned Enterprise”), but, as I said, it was difficult and expensive. At the time I arrived in China, 20 mil USD in the first year and 80 thousand more in one o two years. As you will understand, this was not for everybody but for groups with capital. Fortunately, this has been changing little by little and now he have more flexible regulations to open a WFOE, both in special zones (such as Shanghai Free Trade Zone) and in the cities The information I give you now has been changing a lot in the last few years with great speed, so that this article might be outdated from one day to the next. But even so I am still going to put here the requirements that have persisted longer, so you can get an idea.
Requirements to open a WFOE in China
– 2 copies of the passport of the investor or investors, (certified by the embassy or consulate)
– 2 bank references for each investor (in the original language and Chinese)
– Copy of the passport of the legal representative of the company in China (a legal representative is mandatorily required).
– Copy of the passport of the supervisor of the company (The presence of the supervisor is not obligatory).
– Copy of the director’s passport of the associated foreign company (if one exists).
– The legal representative must provide 6 photos (2 inches) and a curriculum summary.
– Fill out a form where the capital is established with the account the company, the area of work, and 5 possible names for the company and percentages of participation of each investor.
– Original and 2 copies of the rental contract of the premises or office where the company is to perform its business.
– In the event that the director of the foreign company (parent company) is unable to attend China for the application of the opening, he must provide a signed authorization.
Note: A forecast must be made of how the capital injection will be made to the company based on 30 years. Until then no minimum amount is required.
