With the opening and development of the mainland, more and more companies have registered companies overseas or in Hong Kong as a window for developing overseas markets. Later, overseas window enterprises were used to develop foreign-funded enterprises in the Mainland, forming a “front shop and back factory” pattern, which can not only enhance the company’s image, win the trust of foreign traders, but also enjoy China’s preference. policy. A wholly foreign-owned company is one of the “three capitals”. Through our international business registration network, we can provide comprehensive registration and management services. Make your business develop smoothly.
WFOE WFOE is a wholly foreign-invested limited liability company. Any legal entity or individual overseas (more than one shareholder) can be registered. China’s foreign-funded enterprises were formed based on encouraging production-oriented enterprises because the company’s products are export-oriented and can introduce advanced technology. However, with China’s entry into the WTO, this situation has changed. More service-oriented foreign-funded companies have been established, and many consulting and management companies, software development companies and trading companies (currently limited to bonded areas) have emerged one after another. other.
Advantages of foreign-funded companies
From a foreign investment perspective, the advantages of setting up a foreign-funded company are:
1. Independent control, easy management, and higher efficiency in future operation, management, and development.
2. Enjoy the preferential policy of three deductions and two exclusions.
3. Ability to run a business formally without office constraints.
4. Issue RMB invoices to users and use RMB as revenue.
5. Convert RMB profit to US dollar and send it to the overseas parent company.
6. Hire direct employees in China.
7. Protect intellectual property and proprietary technology.
Wholly foreign-owned company’s business scope
very strict and precise in all industries in China. Foreign-financed business entities can only carry out business activities within the permitted business scope, which will be included in the business license. Amendments must be requested and approved. Of course, there need to be negotiations with the approval department to provide a wider scope of business. Take for example a consulting firm, its business scope includes investment consulting, international economic consulting, trade information consulting, marketing consulting, enterprise management consulting, technical consulting, and so on.
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