More and more foreign companies are considering setting up their own establishment in China. There are various options for you. The common establishments are RO (representative office) and WFOE (Wholly Foreign Owned Enterprise).
RO (Representative Office)
RO can be set up in 1 month after the application documents are ready. The first thing is to decide which location you would like to set up your office. We may come up with choices of the office buildings for you to choose according to your business type and size. Once you decide and sign the office lease, we will prepare all the application documents for you according to Chinese regulations. In 1 month after submitting the application to the local authority you will receive the business license and other registration certificates.
RO can be functioned as your liaison office. You may use RO to build up close contacts with your suppliers and customers in China. Your employees at RO can follow up the orders more convenient and have a better control on the product quality. Being close to the suppliers and customers will also improve the operation of your business.
However, RO is not a company which means it cannot issue invoices to your customers. RO cannot sign a business contract directly with your suppliers and customers.
WFOE (Wholly Foreign Owned Enterprise)
It takes longer time of about 3 months to establish a WFOE after the application documents are submitted to the local authority. The first thing is to choose the office location and sign the office lease. We will then prepare all the application documents for you according to Chinese regulations. In 3 months after submitting the application to the local authorities you will receive the business license and other registration certificates.
WFOE is an independent company for trading business. WFOE is allowed to do trading in Chinese market and also import and export business.
By setting up a WFOE, you will have 100% control on your own business in china.
Establishment Procedure of WFOE
The normal procedure of the establishment of a WFOE is as following:
- Office lease signed
- Preparation of application documents
- WFOE name to be approved by the local Industry and Commerce Administration
- Project environment protection approved by the local Environment Bureau
- Project approved by the local Foreign Economy and Trade Bureau
- Business license to be issued by the local Industry and Commerce Administration
- Approval for making company stamps by the local Public Bureau
- Organization code certificate to be issued by the local Technology Supervision Bureau
- Registration at the Central Tax Office
- Registration at the Local Tax Office
- Registration of import and export at local Foreign Economy and Trade Bureau
- Registration at local Foreign Currency Bureau
- Registration at local Customs
- Registration at local Financial Bureau
Please check out the working procedure with us or contact us for more information.