If you are planning to set up a wholly foreign owned enterprise in Shanghai then it is important to gather some information about the setup procedure before proceeding towards registration. Actually, WFOE requires full commitment, in other words, you are solely responsible for its entire losses and profits. WFOE actually represents limited liability corporations that are coordinated by foreign parties and capitalized with foreign investments.The unique about WFOE is that no Chinese or local investor is allowed to get involved in it. China market may seem very attractive and lucrative to invest capital but before investing your money in china market it is better to learn that how to set up WFOE in Shanghai.
Let's start with the documents that foreign investors required for setting up their business in Shanghai:-
There are two main options for investors, you either open a WFOE as an individual or as a company but for both the options you need to have a series of documents as mentioned below.
● If the investor never visited China before, in that case, they required providing a certified copy of his/ her passport
● You need to submit bank confirmation letter
● Submit the Chinese name proposal for your company
● Certified copy of registration information of parent foreign company, if WFOE is invested by a company
Determine the requirements for the registered capital?
As per the latest company formation rules, there is no limitation on the time and the amount. This law applies both to local or foreign companies. Therefore, the company can choose the injection time and the registered capital.
How To Register the Company Address?
The Chinese company should have registration address but the stability of the registration address should not be taken into account when choosing the address. However changing the registration address especially cross region transfer is quite complicated and time-consuming too.
What are the limitations of WFOE?
For general business set up, there are no limitations and special requirements applied to the shareholder i.e; who is an individual, no requirement of specific education, working experience, background check and so on. Whereas there are some conditions have been applied to certain industries.
Let's start with the documents that foreign investors required for setting up their business in Shanghai:-
There are two main options for investors, you either open a WFOE as an individual or as a company but for both the options you need to have a series of documents as mentioned below.
● If the investor never visited China before, in that case, they required providing a certified copy of his/ her passport
● You need to submit bank confirmation letter
● Submit the Chinese name proposal for your company
● Certified copy of registration information of parent foreign company, if WFOE is invested by a company
Determine the requirements for the registered capital?
As per the latest company formation rules, there is no limitation on the time and the amount. This law applies both to local or foreign companies. Therefore, the company can choose the injection time and the registered capital.
How To Register the Company Address?
The Chinese company should have registration address but the stability of the registration address should not be taken into account when choosing the address. However changing the registration address especially cross region transfer is quite complicated and time-consuming too.
What are the limitations of WFOE?
For general business set up, there are no limitations and special requirements applied to the shareholder i.e; who is an individual, no requirement of specific education, working experience, background check and so on. Whereas there are some conditions have been applied to certain industries.
