Major Issues for the Foreign Companies Regarding WFOE Formation in China

作者:Moon 發表日期:2017-08-10 14:51:22

From raw materials to sourcing various products, Chinese and U.S. commerce have become closely aligned over the years. American companies always try to lower their manufacturing cost and Chinese manufacturers and sourcing agents fulfil their needs by providing everything they want. However, doing business in China is not as simple as it seems bvi company setup.

The Chinese authorities are closely monitoring foreign companies that are doing business in China without a China entity( WFOE, Joint Venture or Rep Office) and targeting them with the high-level tax crackdown. Till now, forming China entity and starting a business over here is not a clear cut concept for many U.S. business owners work visa hong kong.

A Wholly Foreign Owned Enterprise is a limited liability company owned solely by the foreign investor. It is under foreign control and does not have any formal Chinese ownership. A WFOE requires registered capital and its liability is limited to its equity, it can generate income, pays tax in China and its profit can be repatriated back to the investor’s home country. Any limited liability enterprise in China which is 100% owned by a foreign company, individual(s) or companies can be called as WFOE hong kong company formation.

If any foreign company want to do business in China, they need to form a Wholly Foreign Owned Entity or WFOE. But along with WFOE, there are several issues that U.S. companies need to keep in mind. Here we are discussing all of them china company formation.

 

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