WOFE in mainland china

Posted by Irishman (274 days ago)

I am looking for some advice on setting up a business in mainland China.
I am specifically looking for information on a WOFE (wholly owned foreign enterprise)

I spend about two and a half million dollars per year buying product and this is growing ever month. I buy from various factories.
I have asked a Chinese solicitor if it would be worth setting up a company in China to take advantage of getting back tax and also let me now if there would be any other advantages. The answer is always vague and non specific
Can anyone please tell me what the system of taxation in China and does anyone know if it would be worth my while pursuing this.

(I am based in Guangzhou)

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Posted by pathtochina (273 days ago)

Foreign investors are now allowed to have a wholly owned trading company in China now. It's also the most common way foreign investors will employ if they want to export goods from China dirctly. According to your situation, I suggest that you establish a wholesale trading WFOE (Wholly Foreign Owned Enterprise), which can enable you to have total control over your operation without having a Chinese partner involved in China . In Shanghai, USD140,000 is enough for the establishment of a wholesal trading WFOE.

After the completion of the wholesale trading WFOE establishment, You can obtain your own Import/Export License and apply for the "General VAT Taxpayer Status", so you can issue VAT license and get tax rebate. By resorting to this way, there is no risk of your clients and market information being given away to your Chinese suppliers as well as enjoy the tax incentive in China.

Simon with Path To China.
http://www.pathtochina.com/

(I am based in Shanghai)