Requirements and administration guidelines
As mentioned previously, due to the differences in the types of companies that can be formed the below is only a very basic overview of the company administration guidelines. Eltoma can advise on an individual basis providing you with specific information tailored to your requirements.
- WFOE Minimum Registered Capital – RMB 100,000 – RMB 500,000 (approx. US$15,000 – US$75,000) is the minimum capital requirement
- WFOE – Between 1 – 50 shareholders allowed. Public offering of shares are prohibited
- JV Minimum Registered Capital - A minimum of 25% of the capital must be contributed by the foreign partner
- JV - Drawn up by agreement dependent on capital invested
- WFOE – The WFOE must designate a single director or a board of directors who will act for the initial term of office, as set out in the Articles of Association
- JV- Directors appointed by the parties in general proportion to the investors respective equity shares
- All companies in China must have a physical office address at which the company is registered. They are prohibited from using a virtual address.
- WFOE - At least one individual who is not a Director must act as a WFOE Supervisor
- WFOE – One individual must be designated as the legal representative in the formation of documents.
- JV - A legal representative is required
- This is dependent on the complexity of the business and the negotiations required.
CJEU: Defines Key Definitions for Tax & Beneficial Ownership Purposes
Last month, the Court of Justice of the European Union (CJEU) issued a series of important judgments dealing with tax avoidance and beneficial ownership in the context of the EU Parent-Subsidiary Directive (PSD) and the Interest and Royalties Directive (IRD).