It has been approximately 40 years since China adopted economic reforms that have propelled it into a global economic powerhouse. Unlike many jurisdictions out there, China has discovered the secret of supporting businesses, and the results are there for all to see: the country has jumped into the second-largest economy based on GDP. At the current average GDP growth of 7-10%, it is only a matter of time before it overtakes the US to become the largest economy.
When investors look at the growing economic numbers, they are left with no doubt that China is the perfect jurisdiction for offshore companies. This is why most of them in areas such as manufacturing and technology have become very successful. You, too, should not be left behind, and the best vehicle to enter and take advantage of the high-potential jurisdiction is a wholly foreign-owned enterprise (WFOE). Keep reading as we take a closer look and demonstrate the best way to register a company in China.
A WFOE in China is preferred by most investors because it allows 100% foreign shareholding. Again, China does not have restrictions on capital movement. Here are other benefits that come with opening a WFOE in China.
A high population of more than 1.4 billion offers a ready market for your business.
China is strategically located in the Far East. This makes it easy for your enterprise to access a larger market in Asia-Pacific.
China has signed multiple trade agreements with other countries both in Asia-Pacific and across the globe to help companies grow rapidly and become multinationals.
State-of-the-art infrastructure helps companies to keep the cost of production low.
The Main Steps of Registering a WFOE in China
The benefits of opening a WFOE in China that we have listed in this post are only a few; the list is way longer. However, we must indicate that company incorporation in China is challenging for many investors. In many cases, foreigners find it a tough call because they need to deal with multiple departments and the list of documents to prepare is also pretty long. Let’s have a look at some of these the main steps involved:
Select the right business name.
Prepare the right documents for company registration. These include a statement of business purpose, articles of association, business scope, proof of lease agreement, and business structure.
Apply for a business license using the documents that you have just prepared.
Register your business for taxes with the local tax bureau.
Open a bank account.
Simplify the Process of WFOE Registration with the help of Experts
The best way to simplify company registration in China is by working with an agency of experts. These are professionals who have been in the Chinese market and come with a lot of experience when it comes to company registration. They not only help you to prepare the required documents but can also serve as the legal representative.
If you select the leading agency of experts, such as Hawksford, to help with WFOE registration in China, you can also get assisted with crafting the right strategy for the entry into the new market. The agency would also come in handy to help with:
Filing tax returns.
Tailor-made services such as shareholding structure of boards and committees.
As you can see, there is no doubt that China is a jurisdiction ripe for investment, but you need to get the process of incorporation right. With Hawksford, you have all the support required for faster growth and success. They not only understand the Chinese market well but are also willing to hold your hand and ensure your enterprise becomes successful. With a professional on your side, you can never go wrong!