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Frequently Asked Questions
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 REGISTRATIONS
RESIDENT REPRESENTATIVE OFFICES


Registration for Extension and Changes of Particulars of
Permanent Representative Offices

The validity of duration of the residence for the Permanent Representative Office (RO) is 3 years, beginning from the date on which the registration certificate is issued by the examination and approval authorities. Procedures for extension should be conducted if needed, by the entrusted business agents like Kaizen at least 60 days before expiration through application to the examination and approval authorities. After the application is approved, registration procedures should be conducted with the original registration authorities and the following documents are required:
1. Letter of application for extension signed by the Chairman or General Manager of the foreign enterprise (original)
2. Statement of business activities of the R.R Office within the duration of residence; (original)
3. Letter of reference for banking activities issued by a non-Chinese bank that has business relations with this foreign enterprise, and bears the validity of six months;(original)
4. Certificate of registration of the company issued by the local authority of the country or region where this enterprise is located; (photo-copy)
5. New lease agreement for the houses of the Representative Office,
6. “Approval Certificate for Extension”, “Registration Certificate” and Representative's working ID Card of the Permanent Representative Office in China; (original)

On completion of the foregoing materials, “Registration Application Form for Extension”, “Manuscript of Certificate”, “Certificate for the Use of the Site of Business Operations” and “Entrustment Letter for the Registration” shall be filled out. These documents can also be fully prepared and filled in for you by China Star Corp, which really saves your time!

After the above documents are all checked and agreed, new “Registration Certificate” and “Representative's ID Card” for the next 3 years shall be issued, the extension of the “Representative's ID Card” shall be conducted.

Procedures for changing the chief representative, business scope, name and office address

Changing chief representative or adding representatives:
•  Provide the application letter for changing the chief rep signed by the chairman or general manager of the enterprise;
•  Provide the Authorization and Appointment letter of (chief) representative signed by the chairman or general manager of the enterprise;
•  Provide resume of new (chief) representative(s);
•  Provide photocopy of the ID card/Passport of new (chief) representative(s);
•  Provide a 2-inch sized photo of new (chief) representative(s);
•  Fill in Application Form of Amendment of the Representative Office of Foreign Enterprise;
•  Provide photocopies of Approval Certificate of establishing the representative office and Registration Certificate (the original Approval Certificate for Change shall be provided in case the Chief Representative has been changed);
•  Provide the dispatching letter issued by China Star in case the (chief) representative is Chinese Citizen;

Changing business scope:
•  Provide the Application Letter for changing the business cope signed by the chairman or general manager of the enterprise;
•  Provide photocopy of the enterprise's new foreign registration certificate issued by its country of origin;
•  Fill in Application Form for Amendment of the Representative Office of foreign enterprise;
•  Provide photocopies of Approval Certificate of establishing the representative office and the Registration Certificate.

Changing the name of the Representative office
•  Provide the Application Letter for changing the name of the representative office signed by he chairman or general manager of the enterprise;
•  Provide photocopy of the enterprise's new foreign registration certificate issued by its country of origin;
•  Fill in Application Form for Amendment of the Representative Office of Foreign Enterprise;
•  Provide photocopies of Approval Certificate of establishing the representative office and Registration Certificate.

Changing the address of the representative office:
•  Provide an Application Letter for changing the address of the representative office signed by the chairman or general manager of the enterprise;
•  Provide photocopy of the rent contract of the office (the rental period shall exceed one year);
•  Fill in Application Form for Amendment of the Representative Office of foreign enterprise;
•  Provide photocopies of the Approval Certificate and Registration Certificate of establishing the Representative Office.

Provide the Chinese translation of above mentioned documents and materials in case the original documents are written in foreign languages.

 
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

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