Frequently Asked Questions


Frequently Asked Questions


Wholly Foreign Owned Enterprise (WFOE) in China

Question: Who can own a Wholly Foreign Owned Enterprise (WFOE) in China?

Answer: Everybody except local Chinese. 

Question: What are the advantages to opening WFOE?

Answer: You will be treated like Chinese companies by the local government when you are doing your business in mainland China.

Question: Do I have to open inside a special location?

Answer: No, you don’t have to. But you do get some of the tax advantages from those special locations.

Question: Can WFOE have international trade licenses?

Answer: Yes, but you will need to apply for them to the Chinese government.

Question: Can I employ the right people in Mainland China?

Answer: Yes, you can.

Question: Are there differences between special trading zones, development zones, and other special areas, from a tax point of view?

Answer: Yes, it depends on what purpose your company has and where it is located.

Question: What will be the ideal location for my enterprise?

Answer: It depends on what you are going to do – our company will be able to give you advice on where would be the best place for your enterprise.

Question: Can the profits be sent to the owner abroad?

Answer: Yes, after the owner pays all the taxes.

Question: What’s the limitation on the business scope?

Answer: Business scope depends on what you are going to do.

Question: Can we make changes on the business scope?

Answer: Yes, we can. You  will have to apply to the authorities and get it approved.

Question: When do I have to pay the paid-up capital?

Answer: Within 3 months after you get your certificate of incorporation.

Question: How long does it to take to get a certificate of incorporation?

Answer: 6 to 8 weeks.

Question: Are there restriction to who can be employed?

Answer: No special restrictions. You can employ people everywhere in China.

Question: Is the Wholly Foreign Owned Enterprise a formation with limited liability?

Answer: Yes, it is. All the WFOE’s are limited liability companies.

Question: Is a Wholly Foreign Owned Enterprise restricted only to conduct business from its registered office?

Answer: No, not any more. You can have an different office which conducts business from somewhere other than the registered office.

Question: Can a Wholly Foreign Owned Enterprise buy a Chinese company?

Answer: Yes, it can.

Question: Where will the final corporate package be delivered?

Answer: The corporate documents will be delivered to your chosen address. Please state this in all your orders.

Question: Does the beneficial owner need to be disclosed to the Chinese authorities?

Answer: No, only the direct owner has to be stated in the registration process.

Representative Office in mainland China

Question: Who can own a Representative Office?

Answer: Everybody who is not a Chinese citizen.

Question: Are there restrictions to who can be employed?

Answer: There are no restrictions.

Question: Can I conduct normal business with Representative Office?

Answer: No, there are restrictions. No business activates are legally allowed, for example writing invoices. The company purpose is only to represent you and your company in China.

Question: Is a Representative Office restricted to only conduct business from its registered office?

Answer: A Representative Office can not conduct any business activities.

Question: Who should open a Representative Office?

Answer: Those people who want to widen their audience and promote their products or brands in China.

Question: What are the advantages of opening a Representative Office?

Answer: It depends on what you are going to do.

Question: Can a Representative Office be turned into a WFOE?

Answer: No, but it can open a WFOE very easily.

Question: Can a Representative Office write a bill?

Answer: No, because a representative office is not allowed to make profit or conduct any kind of business activity.

Worldwide Incorporations

Question: In which jurisdictions must the beneficial owner be disclosed to the authorities?

Answer: The beneficial owner must be disclosed in jurisdictions such as Jersey, Bermuda and Labuan. It is important to note that in some jurisdictions the beneficial owner is not disclosed to the authorities, but to banks and Registered Agents. In the Bahamas the beneficial owner is disclosed to the Registered Agent. In Switzerland the beneficial owner is to be disclosed to the bank for the opening of corporate bank accounts. Let us know the jurisdiction and we can let you know specifics in regards to which information is disclosed to what authorities.

Question: Is it possible to obtain bearer shares in all jurisdictions or in which jurisdictions is it possible?

Answer: Different jurisdictions have different statutory regulations. The Bahamas, Labuan, Hong Kong, Costa Rica, Bermuda, Cyprus, Jersey, Monaco, Singapore, and St. Lucia Jurisdictions do not allow bearer shares.

Question: Can you open bank accounts?

ANSWER: Yes. We provided bank account opening services. Please contact us with which jurisdiction you wish to open a bank account in.

Question: Where will the incorporation documents be sent to?

Answer: The incorporation documents will be sent to your chosen address. Please ensure you have stated this in your order.

Question: In what intervals do your updated information on your system?

Answer: Information on our web-site is regularly updated. Any changes to a specific jurisdiction’s policy will be immediately updated on our website.

Question: Are your services also available in other methods?

Answer: You can choose between the following methods of incorporation -fax, mail, email and telephone. Of cause all original documentation will have to be sent by traditional mail or courier.

Question: Can you provide directors ? Will you provide a resident director in all jurisdictions?

Answer: In partnership with our associate network, we can provide the nominee directors and other corporate officers if required.