Create a WOFE in shanghai

Create a foreign company in China whose capital belongs 100% to one or more foreign shareholders through the creation of a Wholly Owned Foreign Enterprise (WOFE).

This status guarantees autonomy of management and you do not need to have a Chinese partner. However, it is currently reserved for the exercise of an activity such as the following: Production, assembly, Trade, Trading, Consulting.

Shareholders of the WOFE can be one or more individuals or a corporation.
In return, therefore a minimum capital is required. Its amount depends on the type of activity, the sector in which it is exercised, the recording location (province) and localization (Special Economic Zone, …) of the WOFE. As an example a retail registered in Shanghai must have a minimum capital of approximately RMB 1.1 million.

The WOFE have a tax rate on profits, varies according to the place of registration between 15 and 33% of profits. Tax exemptions for one to two years are negotiable with government authorities.

Do not hesitate to local authorities and supervisory compete to obtain more favorable terms in exchange for your installation in their area (everything is negotiable).

It is to be noted that in principle you need to go through an accredited agent to submit your registration dossier WOFE from government (a process that takes about 2 months).

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