The minimum registered capital for a WFOE registration will be different according to the different industry, for a company engaging in services, consulting and technology development, it needs RMB100,000.For a company mainly engaging in trading, wholesale or retail,RMB500,000 is required. For a manufacturing company which is engaging in production operation, the minimum registered capital requires RMB 500,000. In most of cities the above is available such as in Shanghai, Hangzhou, Shenzhen, ect. Generally speaking, all of the registered capital can be paid in one time (within 6 months after the date of the issuance of the Company’s business license) and can also be paid for many times in two years (In the first 3 months, 20% of the registered capital is mandatory).

Different clients have different needs and requirements for setting up a WFOE in China depending on the industry, company size and business scope, therefore choosing a professional agency for assistance is very important. Sinoinvest Consulting could provide you overall services for a WFOE registration in China.

The most popular type of running business in China for foreigners is to form a wholly foreign owned enterprise (WFOE).However, obtaining a business license of WFOE is not a little case even for the local Chinese registers. It requires lots of paperwork and a long and complex procedure. Therefore, with the help of a local professional consulting company to take care of the application process is obviously necessary.

It will take two to three months to complete the formation in practice, even though the law says that the process should take no longer than two weeks. Why is it so time consuming? Filling out all the paperwork, preparing long lists of documents such as certificates of incorporation, bank reference letter, leasing contract of office address, ect will take time to begin with. Then, there likely will be obstacles which require correct “guanxi” to be in place. “guanxi” could make whole steps go faster and more smoothly.

For yourself, you just focus on providing all correct information including names, investment amounts, ownership percentage, ect. Pay more careful with the spelling of numbers and foreign names as most Chinese write in a different form of English letters with the local English speakers which may cause trouble getting them right.

As for opening bank in China, they use stamps rather than signatures. Each company has a company stamp, special financial stamp and the legal person has a personal stamp. All banking matters as well as signing contract require you to stamp on the papers. This means that stamps need to be kept in a especially careful way.

Upon the successful registration,you will get all licenses which are packed with red or green covers including business license, enterprise code license, foreign exchange certificate, tax certificate, financial certificate, ect and then you could start your business in China.

With the advanced technology and economic globalization, forming offshore companies has become a popular trend .Here I listed several tips for a successful offshore company registration.

Find your own reasons to go for an offshore company:

• Tax saving
• Asset protection
• Flexible business law
• Privacy
• Lawsuit protection

Main steps involved during a successful offshore company registration:

• Selecting a jurisdiction which suits your business is the first important step.
• Finding a professional corporate consulting company is critical, through which you could learn the details regarding the issues of legal, financial and tax aspects of the company and business.
• Identifying an ideal corporate bank account to facilitate your international trade.
• Understanding the types of taxes and exemptions allowed in the chosen jurisdiction.
• Checking the rate of renewal fee because nearly all jurisdictions demand an annual fee.

Upon the registration of your offshore company, you will receive a certification of incorporation which is the legal proof of existence of this company.

More than 308,000 companies have been registered in Delaware including 60% of  Fortune 500 companies and 50% of the corporations which were listed on the NYSE. Read below you will understand the reasons why Delaware is recognized as the best choice for a US company formation.

The incorporation and maintenance costs are lower than other jurisdictions in the world. Compared to other jurisdictions, Delaware company formation needs an easy procedure, the incorporation process often takes a very short time and anyone no matter what country he or she comes from could form a company in Delaware and no need to come to visit there in person.

What’s more, as long as it doesn’t conduct any business, a Delaware company is not subject to income tax and also the State of Delaware will not impose sales taxes.

A Delaware company formation helps to protect assets and the Delaware LLC could enjoy a high level of privacy, the company officer’s private information will not be disclosed on the public record. Both Delaware LLC and Delaware Corporation are required to file an Annual Report (corporation) or pay an annual franchise tax (LLC) to remain in good standing but the electronic filing systems are available to reduce the administrative burden.

With flexible business entity statutes, well-developed case law, Delaware offers an unparalleled environment in which to organize business entities.

Chinese official says that a large amount of the global top companies have invested in China Since the mid-1990s, and more and more overseas companies have been making their way into Chinese market. The investment covers almost all fields like the manufacturing, service, and rural infrastructure construction sectors, ect. And meanwhile Chinese investment environment has been improving in a large scale which has attracted more and more foreign investors.

Even though the high-tech and trade service industries were most favored by foreign investors, projects funded by foreign companies involve oil, chemical, electronic, machinery, computer, telecommunication equipment, ect. Nearly 90 percent of the projects funded are located in coastal areas and cities such as Shanghai, Guangdong, Jiangsu, Beijing and Shandong, ect.

 For some new companies, they usually set up representative offices to do some market research and test the market before they commit themselves to invest in China. By using both the markets and resources from their own homes and China, these companies have remarkably improved their international competitiveness.

We have moved to a new location to support the rapid growth and the continuous development of the company. The new office is located in the Sichuan North road, a well-known commercial zone in the Northern part of Shanghai. We have also added new staff and are recruiting more professional talents who will enable us to offer more value-added services for our customers.

We are also continuing to expand our network of partners worldwide, which will benefit our clients.

Please visit our website at www.sinoinvest.hk to find out our new address and learn more about our services.

We have a list of Seychelles shelf / ready made companies available. Price is USD900; these companies can be transferred within 5 days. Contact us for details and names.

As you would have noticed, we have just launched our redesigned website. Main colors have changed from the original blue to red. We have also changed our main domain name to www.sinoinvest.hk, although www.sinoinvest.biz still works and will redirect here.

We will be adding new contents in the next few days. Feel free to send your feedback on this new theme.

Due to to the increase of the business registration fee by the Hong Kong government, this month, we will be raising our Hong Kong incorporation package price from USD1,200 to USD1,350. The new price will become effective starting on Monday, April 6th, 2009. Thanks for your understanding.

Hong Kong is one of the leading financial centers in Asia with a world-class banking infrastructure. There are no restrictions on capital inflows and outflows to Hong Kong. For offshore companies, operating a corporate account in Hong Kong is much cheaper both in terms of minimum account balance requirements and monthly fees.

Both Hong Kong registered and offshore companies (including BVI, Seychelles, Panama) etc. can open a corporate bank account in Hong Kong, although requirements may vary. For instance, overseas companies will be required in most cases to provide a certificate of incumbency or a certificate of good standing, while this is not required for Hong Kong companies. In most cases banks will require the incorporation documents to be certified by a Hong Kong CPA.

When selecting a bank in Hong Kong, the following factors should be taken into account:

-Online banking: If you operate offshore, offshore banking is an absolute necessity. Make sure to select a bank that has stong internet banking facilities.

-Multi-currency support: does the bank offer multi-currency accounts (USD, Euros etc.). Most banks have both Hong Kong dollars only and multi-currency accounts.

-Service fees (monthly charges, fees for receiving and sending out T/T, currency exchange fees etc.)

-Bank reputation

-General support level

-China/International network

-Value added services: ATM card with worldwide withdrawal support, trade account options (for L/C transactions) etc.

We recommend HSBC and Standard Chartered to open a company bank account in Hong Kong. Feel free to contact us if you require our assistance to set up a bank account for your company in Hong Kong.