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Wholly Foreign Owned Enterprises (WFOE)
A Wholly Foreign Owned Enterprise (WFOE) is a Limited Liability Company established in China by foreign investor(s). A WFOE is very much like a LLC in the USA that it requires one member only.
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The registration procedures of a Wholly Foreign Owned Enterprise (WFOE) could be divided into 3 phases: aproval phase, registration phase and post-establishment phase.
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A Wholly Foreign Owned Enterprise (WFOE) could be terminated by way of liquidation or deregistration by its investor(s) or when the conditions of termination in its Articles of Association occurs.
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China Taxation
Under the current tax system in China, there are 25 types of taxes which could be divided into 8 categories. The major ones are Business Tax, Value Added Tax and Enterprise Income Tax. More
Representative Offices are also liable for Business Tax and Enterprise Income Tax. However, a RO could be exempted if its parent company is in the manufacturing business.
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Any individual who has domicile in China or who has no domicile in China but has resided in China for one year or more shall pay Individual Income Tax on his world-wide income.
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CHINA FOREIGN INVESTMENTS UPDATES


Renewal of Tax Registration Certificates

According to the notices from State General Administration of Taxation (NO. 38 OF GUOSHUIFA 2006), all taxpayers registered before 31 July 2006 shall replace their tax registration certificates during the period from August to November.

The following documents are required to be submitted to the local tax authorityfor for processing of the renewal:
(1) original business license (duplicate);
(2) original enterprise code certificate (duplicate);
(3) original lease agreement;
(4) photocopy of the articles of association;
(5) original capital verification report;
(6) original identity certification of the legal representative (in charge person); you are required to provide a power of attorney and photocopy of the identity certification with signatures if the original copy is not available;
(7) original state tax registration certificate (including the duplicate copy);
(8) original local tax registration certificate (including the duplicate copy);
(9) company seal and the private seal of the legal representative.

In addition , in accordance with the notice from Shanghai Tax Authority, all taxpayers have to change to tax certificates on or before 6 September 2006. An extension of one week would be granted upon application.

Hong Kong Head Office              Room 803, Futura Plaza, 111 How Ming Street, Kwun Tong, Hong Kong
                                                 TEL +852 2341 1444      FAX +852 2341 1414      E-mail info@bycpa.com

Shenzhen Office   TEL +86 (0755) 82684480 82684483 82684484 FAX +86 (0755) 82684481
Shanghai Office   TEL +86 (021) 64394114 64399276 FAX +86 (021) 64394414
Beijing Office   TEL +86 (010) 68748420 68748422    FAX +86 (010) 68748421  

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