AbacusHKcpa - China Company Formation - WFOE (Wholly Foreign Owned Enterprise) : Pros & Cons

With separate legal entity in China;
Can carry out all business activities (subject to the business scope stated in business licence);
Can negotiate for tax incentive with local government;
Can hire local staff.

Cons

Application process is more complex and each step may have profound impact in future development of the company: business scope, financing, tax rates, director board management etc.;
Capital injection is required to meet the minimum level for specific industry and in specific territory of China (such as free trade zones and export processing zones). The mimimum capital is around US$ 140,000;
Even though WFOE is limited liability in nature, a legal representative needs to be appointed and take up unlimited liability of the WFOE.

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AbacusHKCPA - Certified Public Accountants base in Hong Kong (HK) - ACCA, HKICPA, providing services of

company formation, financial management, business advisory, tax planning, auditing and accounting.

AbacusHKCPA - Company Formation and Company Registration by Hong Kong Accountants (HKCPA)