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:

 

The Investigation of a Cyprus Company's Affairs: Application of the Law & Effectiveness

At the request of a Cyprus company’s Shareholder, where it is proven that a more comprehensive investigation is required regarding a company’s activities, the court can issue a declaration of investigation by an inspector appointed by the Cyprus Council of Ministers. The discretion of the court must be applied carefully; as such an order can heavily impact a company and depending on the outcome of the investigation, can be a severe measure that deviates from fundamental principles of Cyprus company law.

UK: The Current Problems with Money Laundering & the Violation of Anti-Money Laundering Regimes

UK: The Current Problems with Money Laundering & the Violation of Anti-Money Laundering Regimes

The fact that money can be transferred from one jurisdiction to another means, that money laundering as a concept involves the entire modern world. Money laundering is a process during which the origin and purpose of payments are hidden and typically has three stages.

Director’s Duties & Liability Insurance in Cyprus

Director’s Duties & Liability Insurance in Cyprus

This article will examine the role of a Director and his duties and liability insurance and D&O insurance liability accordingly with reference to the relevant case law.

 

Q&A: Singapore Small Company Concept for Audit Exemption

The following article will answer some commonly asked questions regarding Singapore small company auditing requirements and exemptions from ACRA.

Exemption from Audit: Singapore Small Company Criteria

Exemption from Audit: Singapore Small Company Criteria

Singapore Audit Requirements: running a company in most countries require auditing as a process to prove that everything is operating legitimately. Listed companies have a legal responsibility to go through audit in Singapore similarly.

EU: Cyprus Competitive Advantage at Risk with Tax Consolidation Reforms

EU: Cyprus Competitive Advantage at Risk with Tax Consolidation Reforms

Cyprus is likely to have repercussions as a result of Jean-Claude Juncker ’s favouring of a relaxation in EU regulation formation and monitoring schemes, reinforced by qualified majorities on matters including the additional synchronisation of blanket taxation rates across Europe.

Singapore Service Providers: How to Comply with the ACRA Reporting Requirements

Singapore Service Providers: How to Comply with the ACRA Reporting Requirements

As a result of the ACRA Amendment Act in 2014, Registered Filing Agents and Corporate Service Providers now have to conduct independent Anti-Money Laundering / Countering the Financing of Terrorism (AML/CFT) reviews as part of their annual audit reviews.

Beginners Guide to Service Level Agreements: Important Information & Q&A

Beginners Guide to Service Level Agreements: Important Information & Q&A

SLAs are a critical component of any outsourcing and technology vendor contract. Beyond listing expectations of service type and quality, an SLA provides remedies when requirements aren't met.