WFOE in Shenzhen

Registered andPaidup Capital of SZ WFOE setup

RegisteredCapital: USD$140,000 is a good idea for all kinds of WFOE, with USD$140,000investment it's easy to get approved. Initial Paid-up would be 20% oftheregistered capital; the balance should be remitted within 2 years.

Registeredcapitalis the amount that it's required to run the business until it can breakeven -the 'registered capital' is a guideline only. If you do looking for aminimumregistered capital, for instance RMB 30,000 (which is impossible toestablish aWFOE in China) this means you will run out of money pretty soon,which leads toincreased costs in reapplying for permission to increase capital,additionallicensing fees and renewals of business licenses and so on. The WFOEneedsfunding via it's registered capital until it's about to support itselffromit's own cash flow.

Office AddressofShenzhen WFOE

Before submit theapplication forms of forming a WFOE in China, the foreigninvestor mustrent a plant (manufacturing WFOE) or an office in advance (ridiculous?),theoffice of WFOE can't be in a residence building nor residence andcommerce(R&C) combined building. **Virtual address is not allowed to beregistereda WFOE there although it's widely existing for local companies.Anyway, anormal office building in China will be OK for register aWFOE.

ApplicationDocumentsOF Shenzhen WFOE

1.A projectproposal and feasibility study report (in print and under thecompany seal);

2.Original copiesof the application paper and the resolution by the Chairmanof the Board of theforeign investor (in printed form signed by members of theBoard and withcompany chop);

3.Copies of thebusiness licenses of certificates of incorporation of theforeign investor (usuallywith the permission chop from the governmentdepartment.)

4. An originalcopy of leasing agreement with chop of the Housing Department.

5. Directors namelist of board or management.

6. An originalcopy of the corporate ratification paper (2 copies induplicate).

7. Two originalbank credibility letters for the foreign investors, stating a7-digits bankbalance, issued within 6 months in both English and Chineselanguage.