registered capital

WFOE set-up in the Shanghai Pilot Free Trade Zone

Wholly Foreign-Owned Enterprise (WFOE) is, by far, the favorite entity for foreign investors looking to set up a company in China. Representative Offices may offer cheap and easy way to feel Chinese trends, Joint-Ventures may give you a privileged access to the market, but WFOE are the only way for a foreign investor to have full control on its operations in China. And where else than in Shanghai would you set up a WFOE? Since the launch of the Shanghai Pilot Free Trade Zone (SHPFTZ) last September, new opportunities for foreign investors are arising in the city.

Chinese New Business License: not a fake!

Chinese Administrations have introduced a new Business License, in the wake of the recent amendment of the Chinese Company Lawin the beginning of last year. The issuance of those new licenses has started last March, and formerly-established companies are required to renew their own by February, 28th, 2015. In the meantime, two types are in circulation, the old and the new. Here are the novelties introduced:

Notice 715: SAFE eases foreign exchange regulations

The State Administration of Foreign Exchange (SAFE) has released “Notice 715” simplifying the conversion of foreign currency in registered capital into Renminbi in the 16 pilot zones. Those zones, including areas such as Zhonguancun in Beijing, Binhai in Tianjin or Suzhou Industrial Park, aim at further connect technology and finance. This notice came into force on August 4th and may well ease the way companies manage their funds.

Updates on Shanghai Free Trade Zone

After 8 months since its launch, in September 2013, the much-acclaimed FTZ is now raising more and more concerns about its effectiveness and key role in fostering trade and providing concrete measures for it. Many innovations still seem more theoretical than pragmatic. If in the very first months after its launch this could still leave space to the ambition and optimism of government officials now this mood is starting to creek under the growing urgency for more concrete implementations.

China’s Company Law Amendment to Ease Business Set Up Process

New amendments have been agreed upon by the Standing Committee of National People’s Congress on the 28th of December and have taken force on the 1st of March 2014. The new amendment is said to ease the strict requirements and of the capital contributions as well as to encourage entrepreneurs to establish their own companies. This leads to improving growth of the individual economic sector.

Representative Offices: Understanding New Regulations

TAX BRIEF -- JANUARY 2011

IMPORTANT NOTE: New regulations come into force from March 1st that could require you to change your business structure. If you operate a Representative Office, contact S.J. Grand for an obligation free appraisal of your situation.

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