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.

Share Capital:

  • 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

Directors:

  • 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

Local Requirements:

  • 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

Timescale:

  • This is dependent on the complexity of the business and the negotiations required.

Take the next step, we are here to help.

Register a China company.
Open a China bank account.

  Resources:

 

Cyprus: The Gateway to Europe

Cyprus has been a cornerstone of the international development of Eltoma Corporate Services and has served as the doorway for many companies to enter into the European market and to establish international business exposure.

The Tier 1 Investor Visa: are the UK government checking candidates' source of wealth? Evidently not..

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One of many legal disputes resulting from the recent infamous Kazakhstan BTA bank fraud case has shed new light on a little-known immigration scheme colloquially known as the golden visa scheme and officially called a Tier 1 Investor visa in the UK; the scheme grants investors residency in exchange for spending £2m in UK bonds or shares through a bank, with applicants eligible for to remain indefinitely, with full citizenship after five years.

EU release list of tax havens & blacklisted jurisdictions for the first time

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In an attempt to recover the approximate 600B euros lost within various EU countries to tax evasion schemes each year; the European Union has released its first official blacklist naming 17 jurisdictions that have failed to meet international standards of implementing sufficient regulations and transparency measures.

A beginners guide to filing capital statements in Cyprus

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The Cyprus Passport by Investment scheme: at who's expense?

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Cyprus Minister of Finance Mr Harris Georgiades released a statement condemning critics of the Cyprus passport by investment programme that has seen raise over €4 billion since the launch of the scheme in 2013 which was implemented to attract foreign investment to mitigate damage in light of the banking crisis.

Cyprus Variable Capital Companies: AIFs

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There are two types of Variable Capital Companies in Cyprus; UCITS and AIFS. Read on to find out more about Alternative Investment Funds.

Cyprus Variable Capital Companies: Open-Type UCITS

Cyprus Variable Capital Companies: Open-Type UCITS

There are two types of VCCs in Cyprus; UCITS which we will discuss in the following article, and AIFS.

 

Protection of Nominee Directors from IRD claims for Cyprus client companies

Legislation re Cyprus Tax Residency: