Minimum paid up for WFOE China Company Setup?

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  • #5587
    Anonymous
    Guest

    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?

    #5356
    Anonymous
    Guest

    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?

    #5588
    Anonymous
    Guest

    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.

    #5589
    Anonymous
    Guest

    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.

    #5590
    Anonymous
    Guest

    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.

    #5591
    Anonymous
    Guest

    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…

    #5592
    Anonymous
    Guest

    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…

    #5593
    Anonymous
    Guest

    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 U