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.
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Cyprus Variable Capital Companies: Open-Type UCITS
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Protection of Nominee Directors from IRD claims for Cyprus client companies
Legislation re Cyprus Tax Residency:
Cyprus Company Law: Responsibility of Directors for the non-payment of taxes
A Company Director, in a company incorporated under the laws of the Republic of Cyprus, may be found liable by the Inland Revenue or Customs & Excise with regarding tax related issues. As per the legislation, the Inland Revenue or Customs & Excise may personally prosecute the Company Directors who are involved in any taxation offence(s) or related financial matters.
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