Foreign Direct Investment Services
After China became a member of WTO, China has been the focal point of foreign investors due to its advantages like excellent investment environment, government¡¯s full support and big potential in the market Most foreign investors find it is difficult to capture the keys to successful investment in China. With our solid experience in advising clients¡¯ investments in China over 20 years, we specially extract the following frequently asked questions for your preliminary information.
Q: What are the Procedures for registering foreign investment activities in China
A: Please refer to schedule 1.
Q: What is foreign investment enterprise?
A: Foreign investment enterprise means foreign companies, other economic organizations or individuals by all means to invest in China and able to undertake civil liability independently under China Laws. Foreign investment enterprise includes joint venture, cooperative enterprise,
foreign-invested enterprise.
Q: The proposed name of the Wholly Owned Foreign Enterprise (WOFE) is ¡°ABC Company Limited¡±, Can I directly register the WOFE under this name?
A: No, you cannot.
The naming of WOFE is regulated by ¡°Enterprise Name Management Regulations¡±, the proposed name should contain 4 componets, that is, ¡°enterprise name + industry + location + Co, Ltd¡±.
Example: ABC Trading (Shanghai) Company Limited
The proposed name of WOFE shall be approved by the Administration Bureau of Industry and Commerce before registration.
Q: Can we use ¡°China¡± as part of the name of our wholly foreign owned enterprise?
A: Yes, you can, as long as you have obtain the approval by State Administration for Industry and Commerce.
Q: If we want to register a wholly foreign owned enterprise, which governmental department¡¯s approval is needed?
A: There are two departments that you need to obtain approval: Ministry of Commerce of the PRC; Administration Bureau for Industry and Commerce. You need to obtain special approval if you engage in special industries
Q: Will we be assured with the approval of company registry once we submit the application ?
A: No. China government adopt ¡°approval system¡± instead of ¡°registration system¡±. That means the application may be rejected by the government with some relevant reasons, so applicant should submit all required documents upon government¡¯s request.
Q: Can we set up our office in Pu Dong while the company is registered in Pu Xi?
A: The registered address is legally recognized by the government for the purpose of tax declaration . Investor can choose any administrative district in shanghai, but the place should be qualified as company registration address (non- domestic premise). According to the current <Company Laws>, company¡¯s business address should consistent to the registration address. If you would like to do business in other region, you have to register a branch to the local governmental department concerned.
Q: I¡¯m an American and will be sent to China as wholly foreign owned enterprise¡¯s legal representative by parent company; do I need to apply for employment visa?
A: It depends. According to the relevant employment laws, if you will not stay in China over three months within one year, then the employment visa is not required; if you want to stay in China over three months, the employment visa is required indeed.
Q: Can all shareholders of wholly foreign owned enterprise be non-Chinese citizen?
A: Yes, there is no restriction on he residency of the shareholders. The shareholders can be corporates or individuals Acquisition of shares can only be executed privately, no public acquisition is allowed.
Q: Does wholly foreign owned enterprise need to set up a board of directors?
A: No, it¡¯s not mandatory. A small sized company can appoint one chief executive to exercise the power of directors. There is not requirement for the appointed chief executive to reside in China Foreign director does not need to live in China.
Q: What are the requirements of registered capital of Wholly Owned Foreign Enterprises ?
A:All registered capital must be injected by means of cash, permanent assets or intangible assets. If the capital is injected other than means of cash, then it needs to be evaluated by recognized valuers. The capital injection must be strictly comply to the regulations. ¡°Assets¡± does not only include registered capital, but also the commitment letter of its parent company or financial institutions. Each industry has its minimum requirement on register capital. Injection time and amount should be verified by local CPA with written report. If the capital does not being injected on time, the business license and certificates would be revoked.
Please find the following table for the lowest capital requirement of various industry.
Q: Our company obtained the business license in December last year, do we have to join this year¡¯s annual survey?
A:Yes. The annual survey system is a unique features for Chinese entities. Shanghai Administration Bureau for Industry and Commerce as well as other related institutions (e.g. tax institution, custom, Ministry of Foreign Trade) are authorized by law to carry on annual survey. Its aim is to inspect whether the license holders comply with the law or not.
The company ought to carry the annual survey during March to June every year sinceof its registration. If the enterprises obtain business license before December 31 in current year, it should receive the demand note of annual survey. Those companies which fail to meet the requirement of annual survey may be revoked the business license.
Q: What services does Manivest offer to clients?
A: As a professional advisory in Asia region over 20 years, we are dedicated in providing one-stop service to maximize your competitive edge in the market and minimize the risk. We provide services in the following six areas.
¡¤Accounting Service
1. Set up and maintain the account, make various certificates.
2. Prepare various financial statements.
3. Fill the tax forms and handle tax reporting
4. Pick telephone daily.
5. Both door-to-door accounting service and delivered by client are acceptable.
¡¤Financial Management Service
1. Establish effective company management system about internal finance.
2. Provide long accounting and finance consulting services.
3. Provide professional audit and merge statements services.
4. Foreign exchange consulting services include purchase and verification.
5. Assets evaluation service.
¡¤Tax Service
1. Deputy to certificate for general tax payer.
2. Deputy to apply and verify for tax rebate.
3. Deputy to rebate and tax exemption procedures for business income tax.
4. Verify and check the company¡¯s credit.
5. Design and execute global tax planning.
¡¤Human Resource Service
1. Select person for the companies under their requests.
2. Collect, analyze and reserve labor information.
3. Professional consulting service on local labor legislation.
4. Deputy to appoint labor management book and design personnel management regulations.
5. Provide various standard instruments include contract and employment agreement.
6. Instruct to transact registration for social insurance and housing fund.
7. Transact, extend and modify Employment Certification & Residence Visa for foreign staffs.
¡¤Company Maintenance Service
1. Handle procedures for establishing various companies.
2. Apply administrative approval documents for different industries.
3. United annual inspection for foreign investment companies.
4. Handle registration procedures of modification and cancellation for various companies.
5. Consulting and training services for local administrative regulations.
6. Company brand registration service.
¡¤Bank Service
1. Help companies to open various bank accounts like: specialized account for capital fund verification; basic account; general account.
2. Assist to maintain bank account.
3. Professional consulting service for various bank products, operation procedure and fee.
4. Guide customers to transact all foreign exchange procedures.
5. Explain the considerations while customers using bank services.
Please refer to our ¡°services¡± page [hyper link]
Set up permanent represent office in China
First key word: represent office¡¯s advantages
Second key word: feature for approval
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First key word: service industry
Second key word: shipping insurance
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First key word: financial center
Second key word: foreign investment
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Set up wholly foreign owned enterprise in shanghai
First key word: trade circulation
Second key word: produce and process
Third key word: consultation
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China tax
First key word: business income tax
Second key word: circulation tax
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