Archive for December, 2009
Something you may not know during a WFOE formation in China
Thursday, December 17th, 2009The 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.
Tips for Successful Offshore Company Registration
Tuesday, December 8th, 2009With 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.
