Procedure of company registration
The procedure of registering a company in China is often complicated however Foreign investors are not allowed to directly submit the application documents in order to register a WFOE to the relevant authorities in China. They must retain a PRC Entity to submit all documentations and co-ordinate the process. Eltoma will manage this process on your behalf ensuring you are kept informed every step of the way.
Registering a Wholly Foreign Owned Enterprise:
The procedure for registering a WFOE can be divided into three distinct phases; the approval phase, registration phase and post establishment phase. Below is a brief summary of the process and what documents may be required:
In the first instance it must be determined if the proposed WFOE will conduct business that will be approved by the Chinese Government. If it is deemed that the business is likely to be accepted then the following documentation is required:
- Certificate of Registration, or equivalent, certified by the Chinese Embassy or Consulate
- Passport copy certified by Chinese Embassy or Consulate
- Bank reference letter
- If applicable; passport copy of director of parent company, Legal Representative of China Company, Supervisor of China Company
- Business Scope – One of the most important documents required as a WFOE can only conduct business as defined in the business scope which ultimately appears on the Business License.
- Registered capital and list of proposed names of China Company
If the above documentation is in order and the Chinese Government approves the business scope then the process of incorporation can begin. The following documents are required in order to incorporate:
- Articles of Association – including details of the management and capitalization of the company
- Feasibility Study – including Year 1 Business Plan and Budget
- Leases – Office rental agreement / factory lease etc
- Proposed personnel costs
- Any other documents associated to the specific company
The time frame for incorporation depends on the complexity of the business and the negotiations required. However, Eltoma will guide you through the process providing an informative, smooth and efficient service.
The Opening of a Representative Office:
The opening of a Representative Office in China can provide many opportunities. The summary of the process of establishing a Representative Office is laid out below:
Depending on the type of business that the Representative Office is proposing to represent the Chinese Government will need to provide approval. Once this has been granted the following documents are required:
- An application letter signed by the Chairman of the Board
- Registering documents of head office
- Original bank reference letter regarding the company’s financial standing
- A letter appointing the Chief Representative to the Representative Office plus CV
- A copy of the lease agreement for office space
Once approval has been granted and an Approval Permit issued then the foreign investor must apply to the State Administration for Industry and Commerce. If the application is approved then an approval permit is usually issued within one month.
Registering a Joint Venture Company:
Setting up a Joint Venture can be a complicated and lengthy process and the documentation and timescale is dependent on the type of Joint Venture being formed. Each case is assessed on an individual basis. Eltoma can manage this process negotiating the complex procedure and keeping you informed every step of the way.
Hong Kong Company:
For details regarding the incorporation of a Hong Kong Company please see the pages opposite. Eltoma can advise whether it is advantageous and efficient to register a company in Hong Kong in order to fulfill your Chinese ambitions.
Creating Physical Presence & Capital Requirements for Cyprus Shell Company Crackdown
Recently, the Cyprus Central Bank issued guidance to banks & credit institutions, advising them of the new mandatory refusal to take on new clients or to continue servicing existing accounts with so-called shell or letter-box companies.
How the UK is Combating Offshore Culture & How it Could be Doing More
Typical tax haven destinations such as BVI, Jersey and Switzerland have always been in the spotlight from profiting off of helping clients circumvent legislation in their jurisdiction of residence for decades.
Nevis: The Offshore Tax Haven Nation of the World
In the world of offshore, Nevis specialises in letting its clients create corporations with greater anonymity than almost anywhere else on earth. Since 2012, the island’s financial services sector has grown exponentially, as those wishing to retain anonymity relocated to a place that promises just that. However, with ever-expanding counter legislation cropping up globally, how can Nevis continue to host such controversial services?
Expert Opinion on Cyprus’ New Borrower Incentives to Reduce the Islands NPLs
The Cyprus Ministry of Finance has released a statement regarding the IMF (the International Monetary Fund) & the European Commission is recommending Bills regarding the islands longstanding issue with Non-Performing Loans.
Keeping Europe Up-to-date with the Latest Legal & Financial Technology
The financial world is undergoing a technological revolution, with approximately 3 trillion financial deals entered into using digital ledger technology (DLT) and smart contracts within the next five years.
FATCA: Foreign Financial Institutions & NFFE’s
The Foreign Account Tax Compliance Act (FATCA), which was passed as part of the HIRE Act, was implemented to able foreign financial Institutions and certain other non-financial foreign entities to report on the foreign assets held by their US-based account holders or be subject to withholding tax on the relevant payments.
ICOs: A Smart Business Decision or Just a Risky Investment?
There are many financial experts voicing their concerns over ICOs being too much of a risky investment, however should we be so quick to dismiss ICOs as a legitimate vehicle? ICOs can be used as a substitute for Venture Capital funding due to parallels in the phase of company’s lifespan and risk profiles, which give potential opportunities for future start-ups and companies.
How Initial Coin Offerings Differ from Initial Public Offerings
Since the hectic and intense ecosphere of the cryptocurrency ventures conception, a new sphere has caught investors’ attention from all over the world, being coined ICOs or Initial Coin Offerings.