There is no denying this fact that China is the fastest growing country where you can find some of the best opportunities to further expand your business. However, the process of setting up a business in China is not as easy as it may sound. Every country has their own rules and regulations for the foreign investors. You need to follow the complicated procedure for obtaining a business license but if you are planning to set up Wholly Foreign Owned Enterprise in China, then you must follow this step-by-step guide.
The establishment process of a WFOE can vary somewhat depending on the chosen structure, namely a service WFOE, manufacturing WFOE or trading WFOE and its associated business scope. To Make your task easier, this blog has provided you step by step guide so that foreign investors can easily understand the process.
3 Steps to Established WFOE in Shanghai:
Step 1: Company Name Approval
One of the first steps for foreign companies is to decide on an appropriate name for the Chinese market. The key pieces of legislation governing this are the regulations on registration and management of Enterprises name. The basic condition for deciding the company name is that it should not be copied or misleading consumers, no hidden competitions, damages or contradicts national unity. Your proposal for name approval will be immediately rejected if you use any special characters as well.
Step 2: Submit the Details of the Offices Space
As the company name contains the city of registration, careful consideration should be made before engaging a local estate agent or landlord. The lease should be made before submitting the application for incorporation and a rental period must be of 12 months.
Step 3: Submit Your File For Registration
As long as company’s business scope is not restricted by the negative list for foreign investment or is not subject to the special administrative measures for foreign investment, the application can go through a simplified record-filing process. This process requires:
●An application form
●Commitment letter by all investors or their representatives
●Business license or pre-approval documents for the name of the WFOE
●Power of attorney and identity paper of the representatives
●Certificates or identity document of investors.
These are the few simple steps that can help you process your file and enable you to get the approval for your new business setup in Shanghai.