TCBC Announces to Offer Company Registration Services In Haikou, Sanya Hainan China

SHENZHEN, China - May 19, 2014 - PRLog -- TCBC Announces to Offer Company Registration Services In Haikou, Sanya Hainan China
Being China’s largest Special Economic Zone, nominal GDP of Hainan province has been increasing steadily from 41 RMB billion in 2000 to 122.3 RMB billion in 2010, reflecting a threefold increase over the years. Hainan's pillar industries include: agriculture, tourism, petrochemical industry, electronics and information, and marine bio-pharmaceutical industry.

There are three principal business models for foreign companies seeking to establish themselves in China : Joint Ventures, Wholly Foreign-Owned Companies, and Representative Offices (ROs)

The Wholly Foreign Owned Enterprise (WFOE or WOFE) is a Limited liability company wholly owned by the foreign investor(s). In China, WFOEs were originally conceived for encouraged manufacturing activities that were either export orientated or introduced advanced technology. However, after China's entered into the WTO, these conditions were gradually abolished and the WFOE is increasingly being used for service providers such as a variety of consulting and management services, software development and trading as well. With that, any enterprise in China which is 100% owned by a foreign company or companies can be called as WFOE.

The procedure to Setting up WOFEs

Stage 1: Preliminary approval - Project Proposal

The application procedure for setting up a WOFE is simpler. The project proposal will be prepared by the foreign investors and submitted directly to local authorities. The foreign investor may appoint a local agent to liaise with the government. To do so, he has to sign an authorization letter stipulating the agent’s scope of services, responsibility and fees.

Generally, the authority will give an official reply within 30 days upon receipt of the proposal and other relevant documents. The approval or rejection letter will be issued to the foreign investor. If a favorable reply is received, the foreign investor can proceed to register the company’s name at the local AIC.

The report must contain information regarding the objectives of the WOFE, business scope, scale of operation, products to be produced, technology and equipment to be used, land area required, conditions and quantities of water, electricity, gas and other forms of energy resources required, and requirements for public facilities.

Stage 2: Formal approval - Articles of Association

After the foreign investor receives a written reply from the relevant government authorities, a formal application supported by all the required documents should be filed with the local Ministry of Commerce at a county, municipal or provincial level. After receiving the formal approval, the foreign investor should apply to the Ministry of Commerce again for an approval certificate by presenting all the necessary documents.

The required documents include the application letter for establishing the WOFE; a feasibility study report (if any), articles of association, list of legal representatives (or Board of Directors), the foreign investor’s legal papers and credit report, a list of materials to be imported, written replies from the local approval authorities at county level or above, application for registration of the name of the enterprise approved by the provincial or municipal administration AIC, comments on the project by various government departments such as environmental protection, fire services, health and land administration. In the case where two or more foreign investors are involved, copies of the contracts signed by them should be submitted to the approval authority for their records.

Stage 3: Business License

Upon collection of the approval certificate, an application for a business license has to be filed with the provincial or municipal AIC within 30 days. The local AIC will issue the business license within 10 working days to projects that have passed the examination. Likewise, the date the business license is issued will be considered the official date of the establishment of the enterprise.

Having acquired the business license, the WOFE has to finish up with procedures such as applying for an official seal and enterprise code, opening a bank account, and registering for tax payment and customs declaration with the local public security, technical supervision, taxation, customs, finance, foreign exchange administration, banking, insurance and commodity inspection departments.

“Compared to registering a business in most Western countries, registering a business in China is challenging work filled with paperwork and bureaucratic red tape. It is practically impossible to properly complete the registration process without a qualified agency. Be sure that the agency is qualified and the agency has good connections and relationships with the various local authorities, and that they possess comprehensive knowledge about the numerous important aspects involved with legally and properly registering a WFOE”

says, Tom Lee, CEO and Co-Founder of Tommy China Business Consulting.

About Tommy China Business Consulting

Having been in business for over 10 years, Tommy China Business Consulting is a leading business consulting firm, providing a variety of China business services such as joint venture negotiation, government relations, business setup consulting, import, export and logistic services. TCBC also provide extensive China travel assistances to business travelers. In the past decade, TCBC has successfully negotiated a large number of business agreements between foreign firms and Chinese manufacturers.

For more information, please visit Http://www.tommyconsulting.com