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:

Panama Law 52: Updated legislation for all legal entities

Panama Law 52: Updated legislation for all legal entities

Last month the Government in Panama officially approved Law Number 52; legislation which creates the regulatory framework for the implementation regarding automatically exchanging tax information, in a further attempt to comply with global regulations for tax transparency, and to be fully in line with all supervisory and compliance matters.

Important 2016 reporting deadlines for BVI Financial Institutions

Important 2016 reporting deadlines for BVI Financial Institutions

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Thinking of relocating your business to Singapore? Let us help you!

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How to register a branch in Cyprus

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To Brexit or not to Brexit?

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Selecting a Management Information System

Selecting a Management Information System

A management information system or MIS is used to assist in the analyses and formulation of business strategy, as well as facilitating operational objectives. Selection of an MIS can help increase understanding and control in an organisation and can be scaled to suit the complexity of most modern businesses. If the right MIS is selected and it is implemented correctly it can provide a competitive advantage for the organisations utilising it.

Windows 10 update: having issues with the installation?

Windows 10 update: having issues with the installation?

By now you have probably about Windows 10, the latest operating system developed by Microsoft.

Accounting support for a Cyprus company located in Russia

Accounting support for a Cyprus company located in Russia

When expanding your business overseas, not only do you have to comply with International Financial Reporting Standards (IFRS) and accounting standards, thought must also be given to the specific jurisdictions own rules and regulations.