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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 BUSINESS
CHINA'S CONSULAR LEGALISATION
 

Briefing on China's Consular Legalization

Consular legalization is the formality by which the diplomatic or consular organ affirm the reliability of the final signature and  seal on a notarial certificate or document executed by relevant organ. Consular legalization enables the notarial certificate or relevant document to be recognized as valid in another country.

In accordance with international practices, diplomatic or consular organ is  responsible only for the authenticity of the signature and seal of the notary office and those of the relevant organ placed on the document while the organ concerned who accepts the document shall be  responsible to examine the authenticity and legality of the content of the document.

I. China's Consular Legalization organs

The Consular legalization organs in China are the Consular Department of the Ministry of Foreign Affairs and Foreign Affairs Offices of relevant provinces, autonomous regions and municipalities directly under the central government. Chinese Embassies and Consulates in foreign countries are China's consular legalization organs abroad.

II. Procedures on consular legalization

A. Consular Department of the Ministry of Foreign Affairs

1. The following certificates shall be legalized by the Consular Department of the Ministry of Foreign Affairs:

a. Notarial certificates executed by China's notary offices authorized to provide foreign-related services;

b. Certificates executed by some specific organs in China:
(1) Certificates of origin and commercial invoices issued by Agencies for Quality Supervision and Inspection and Quarantine in China.
(2) Certificates of origin, detailed lists of goods for delivery, formal invoices, specification certificates, weight memos, packing lists, bills of lading and insurance policies issued or attested by China Council for the Promotion of International Trade and its local branches in provinces, autonomous regions, municipalities directly under the central government, and open cities.

2. Requirements for application

a. Notarial certificates of enterprises and organizations and commercial certificates executed by organs specified in A.1.b may be applied directly to the  Consular Department of the Ministry of Foreign Affairs for legalization.

b. Notarial certificates for private purpose may be applied to the Consular Department of the Ministry of Foreign Affairs for legalization through the  following  organs:

(1) Foreign Affairs Offices of the provinces, autonomous regions, municipalities directly under the central government and some cities specially designated in the stat plan (Harbin, Changchun, Shenyang, Dalian, Jinan, Qingdao, Wuhan, Chengdu, Xi'an, Guangzhou, Shenzhen, Hangzhou, Ningbo, Xiamen, Nanjing, Qinhuangdao)

(2) Visa Office of China Travel Service
Address: No.8 Dong Jiao Min Xiang, Dong Cheng District, Beijing
Zip code: 100005
Legalization Office Telephone: 010-6559.3748 or 6512.4896
Legalization Mailing Telephone: 010-6559.3747

(3) Beijing Chang Hongqiao Foreign Economic Cooperation Consulting and Services Co. Ltd.
Address: No.13 Dong Jiao Min Xiang, Dong Cheng District, Beijing
Zip code. 100005
Telephone: 010-6526.5271 or 6526.5278

c.  Foreign citizens may apply for consular legalization through Foreign Embassies in China or directly to the Consular Department of the Ministry of Foreign Affairs of the People's Republic of China.

d. The applicants shall fill out Application Form for Legalization.

3. Consular legalization by Foreign Embassies in China  shall be applied through Service Bureau for the Foreign Ministry and Overseas Missions. However, foreign citizens may apply directly to the Foreign Embassies in China for legalization.

4. Legalization fee standards (unit: RMB):

a. Consular Department's authentication fee:
(1) Civil certificate: RMB50 yuan,
(2) Commercial certificate: RMB100  yuan
(3) Urgent fee: RMB50 yuan

b. Service Bureau's  Handling Fee: RMB60  yuan
Service Bureau's  Urgent fee: RMB30  yuan

c. The applicants are kindly requested to inquire the new legalization fee standards to the Consular Department of the Ministry of Foreign Affairs due to the frequent adjustments of legalization fees by Foreign Embassies in China.

5. The Division of Legalization of the Consular Department of the Ministry of Foreign Affairs
Address:   Suite 708 Prime Tower, No. 22 Chaoyangmen Wai Street, Beijing
Zip code:   100020
Office Hour: 9:00-11:30 a.m. (Mon.-Fri. Excluding public holidays )
Telephones for Inquiry:   
Recorded Message: +86 10-6588 9760 or 6588.9761 or 6588 9762
Manual Service:   010-6588 9763

B. Foreign Affairs Offices of the People's Governments of the provinces, autonomous regions and municipalities directly under the central government in the Consular Districts of Foreign Consulates in China (hereafter called Foreign Affairs Office)

At present, there are twenty Foreign Affairs Offices authorized by the Ministry of Foreign Affairs with consular legalization as follows:

Foreign Affairs Offices of Jiangsu, Zhejiang, Anhui, Fujian, Guangdong, Hainan, Yunnan, Sichuan, Guizhou, Hunan, Hubei, Jiangxi, Heilongjiang, Jilin, Liaoning and Shandong Provinces, Foreign Affairs Offices of Guangxi Zhuang Autonomous Region and Inner-Mongolia Autonomous Region, the Foreign Affairs Offices of Shanghai and Chongqing Municipalities.

Foreign Affairs Offices may legalize certificates, which are executed by the notary offices and the specific organs mentioned  in A.1.  in the above-mentioned provinces,  autonomous region and municipalities, and which will be used in the sending states of Foreign Consulates.

C. Chinese Embassies and Consulates in Foreign Countries

Chinese Embassies and Consulates shall legalize notarial certificates or documents which are executed by notarial offices or specific organs in foreign countries, and which will be used in China.

1. The notarial certificates or documents, executed in the country which has diplomatic relation with China, shall be legalized first by the Ministry of Foreign Affairs or its authorized organ of this country and then legalized by the Chinese Embassy or Consulate in this country before being used in China.

2.The notarial certificates or documents, executed in the country with which China has no diplomatic relation, shall be legalized first by the Ministry of Foreign Affairs or its authorized organ of this country and second by the Embassy or Consulate of a third country which has diplomatic relation with China in this country , and finally by the Chinese Embassy or Consulate in that third country before being used in China.

3. Legalization fee standards could be acquired  from the Chinese Embassies and Consulates in foreign countries where the applicants reside.

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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