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Just read a copy of bizshanghai and saw an ad from Willsonn that says that the minimum paid up capital required for a WFOE consulting has been reduced to 100,000 RMB. A few months ago, i remember reading that the minimum required was 200,000 USD.
I went to their website but can’t see any info on this change. Anyone knows about this? Is this true?
Just read a copy of bizshanghai and saw an ad from Willsonn that says that the minimum paid up capital required for a WFOE consulting has been reduced to 100,000 RMB. A few months ago, i remember reading that the minimum required was 200,000 USD.
I went to their website but can’t see any info on this change. Anyone knows about this? Is this true?
1. Call them up.
2. They write this is the minimum paid up capital they have achieved. Probably means 100k paid up and the rest in other forms (intellectual property or whatever).
3. What kind of business can you run with 100k in the bank? Some big expats pay more than this monthly for their villa. 100k can pay one local staff for one year.
Yeah. You’re right. Probably involves IP.
These days its no longer necessary to come up with huge sums of money to start a business.
Especially consulting…consulting needs at least one consultant, a virtual office and handful of subcontractors hired when a project comes in.
There are also online businesses. There’s just a lot of possibilities as to what you can start online.
A good friend of mine just registered a WFOE with 100.000 RMB investment. IT IS POSSIBLE! He got the biz license in February. It’s only applicable for Service companies, you can’t sell goods with such a WFOE.
But as mentioned, a WFOE requires careful planning and analysis of your biz. Don’t just go and register.
A WFOE requires also a lot of accounting work.
If you just ask for the minimum amount, 100k RMB plus 6k RMB government fees plus whatever the agent takes that you choose.
Nonsense.
Let me count. Whats the lowest amount for an office – lets say 2000 RMB /month for a small cubicle in some facility thats lets you register company address. Thats already 24k per year.
Annual accounting work, assuming a very low level of activity, plus audit fees etc – 10k. A computer, let’s say a poor desktop 5k. Internet connection – skip this, go to Coffee Bean instead? Lets say 10 RMB for a cheap cup x 3 days a week x 40 working weeks.
I don’t expect those guys work that hard anyway. Thats 12k… Let me see, we are at 52k now.
Do we pay someone? Cleaner? Salesman? Technical staff? Well, let’s imagine the small business owner wants to get money out of the business, not as dividend (as it means profit tax) but as expenses or salaries.
Let’s say the guy is not too ambitious, 3k a month. Grand total of 88k in the first year. The company is out of money after only one year… How do you handle that then, smart guy?
I do hope thats not the “path to China” that you guys recommend. Oh and I guess there is no way to pay your fees…
Yes some districts do allow 100K registered capital; however in the registration process based on your business plan the approval might take a longer time or even you will have to increase that registered capital to get the business license.
Plus 100K may be a little tight unless you keep your expenses really low and income comes in immediately. You don’t want to deal with the hassle of having to increase your registered capital because your initial capital has all been spent.
In Shenzhen you can actually register a WFOE with only 30K RMB if there is at least 2 investors…
As for registered capital:
Registered capital is the amount that it’s required to run the business until it can break even – the ‘registered capital’ is a guideline only. If you do looking for a minimum registered capital, for instance RMB 30,000 (which is impossible to establish a WFOE in China) this means you will run out of money pretty soon, which leads to increased costs in reapplying for permission to increase capital, additional licensing fees and renewals of business licenses and so on. The WFOE needs funding via it is registered capital until it is about to support itself from it is own cash flow.
However the amount of registered capital is depend upon factors like Scope of Business and Location. In reality local authorities will review the feasibility study report (and check the lease contract) approve the investment on a case-by-case basis; reduced registered capital could be negotiated in some cases.
The minimum registered capital guides for various industries according to practice in China, for instance Beijing, Shanghai, Guangzhou, Shenzhen are given below:
Consulting WFOE RMB 100,000 ~ RMB 500,000
Service WFOE RMB 100,000 ~ RMB 500,000
Hi-Tech WFOE RMB 100,000 ~ RMB 500,000
Trading WFOE / FICE RMB 500,000 ~ RMB 1 million
Catering WFOE RMB 500,000 ~ RMB 1 million
Manufacturing WFOE RMB 1 million or USD 140,000
The conclusion provided by this /profile/89-cambronne/?do=hovercard” data-mentionid=”89″ href=”<___base_url___>/profile/89-cambronne/” rel=””>@Cambronne might lead people to think that in China, Registered capital less than USD 140K won’t get approved or been approved but won’t generate profit is misleading.
In this thread, the questions is about Minimum paid up for WFOE, not about how much investment that you could break even in China.
As for break even it really depends factors like industry, business plan, office rental, manpower cost etc. You may only break even with investing 1 million bucks for restaurant business in Shanghai; while people may invest 100K RMB begins generate profits during the first 6 months by providing design services.
As for manpower investment, people may used up their investment pretty soon if hire nuts like /profile/89-cambronne/?do=hovercard” data-mentionid=”89″ href=”<___base_url___>/profile/89-cambronne/” rel=””>@Cambronne by spending 140 hours a month sIt around in a forum, get a life.
You post a full page to say the same thing I did – more clearly – in just a few lines? You must be working for that Bath to China firm – dare to tell us what happened to those companies you advised to register a WFOE with 100k RMB capital?
Poor on you, /profile/89-cambronne/?do=hovercard” data-mentionid=”89″ href=”<___base_url___>/profile/89-cambronne/” rel=””>@Cambronne. Are you really understand what I tried to imply? Then you must agree that you are nuts?
You mentioned “with a 100k RMB investment. This is less that what most companies pay in registration and lawyers fees to setup their WFOE…”
Is that your first day in China? Your mislead information will guide people to pay 100k lawyer fee to register a WFOE. Admit you are not knowledgeable but don’t jump up like that. Oh yes, you working for a company called STUPID.
Make a search on google, people will find bunch of companies that could help to establish WFOE. Shopping around, most of them charge much less than that 100K.
I think the question is what happened to my post? Your posts are not doing any good to your firm. Very poor marketing. If you are just a junior marketer there, you deserved to be fired. If you are a boss…
Anyway guys, just don’t go registering a WFOE with 100k RMB unless you have really done your homework and have a valid business plan based on this tiny figure.
And yes it is not uncommon that companies, and I am not talking about giant MNCs, pay 100k RMB and up in lawyers fee to register their business in China. A local cut & paste agent can do it for 25k (no English spoken), some semi-local firms 35-45k (English spoken) – which is fine if you know what you are doing (typically you have already been through the WFOE registration process before).
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