The procedures of setting up a wholly foreign--owned foreign enterprise (WOFE) vary slightly in different areas of China, but the basic procedures are much the same. Following outlines the three stages involved in the establishment in Beijing.
Examination and Approval
At this initial stage you need to have initial approval of your business which allows you to obtain an Approval Certificate from the relevant authorities.
Registration
After obtaining the Approval Certificate from the relevant authority, you need to register with various governmental departments to get Business License for a WOFE.
Other registrations include Public Security Registration, Institutional Code, Statistic Registration, Local and State Tax Registration, Customs Registration.
Post Registration
After obtaining the Business License or the Registration Certificate, you need to get through formality of hiring expatriate employees.
Affairs of hiring an expatriate employee include Employment License, Work visa invitation letter, Medical Examination Certificate, Foreign Expert Certificate or Work Permit, Residence Permit.
The documents required for setting up a WOFE (in Beijing):
1. Copies of legal operation certificate of investors' country or region; foreign individual investors provide copies of their passports; individual investors from Hong Kong, Macao and Taiwan provide the relevant IDs.
2. The bank creditworthiness letter from the banker of investors' country or region. The letter should contain the information such as the name of the investor and a brief review of the creditworthiness of the investor. The letter should be printed on the letterhead paper of the bank and signed by authorized official of the the bank.
3. The application of setting up the WOFE, including the purpose, business scope, location, operation period etc., The application letter should be signed by the legal representative (in printed form with the company seal.
4. Articles of association, sighed by the president or the CEO of the foreign enterprise.
5. The feasibility report of setting up the WOFE, including a brieft introduction to the foreign investment company's background, market analysis, economy estimation ect.
6. The directors' name list of the board or management institution name list in the WOFE.
7. The appointing letter of the directors of the board. The letter should be signed by the president or the CEO of the foreign enterprise. The appointing letter of the WOFE's general manager and vice general managers must be signed by the investment president.
8. Copies of resumes and IDs of the directors of the board, general manager and vice general managers. Foreign nationals provide passport copies; personnel form from Hong Kong, Macao and Taiwan provide copies of the relevant IDs.
9. The copy of leasing agreement with chop of the Housing Department, the leasing period should be at least one year.
10. Notice of enterprise’s name confirmation appraised by the Industry & Commerce Administrative Bureau.