Requirements.
Features of Foreign Invested Commercial Enterprises.

Requirement :

1.Require one director (it will be required at least three directors if the investor sets up a Board of Director),any nationality can be a director and can be resident anywhere.

2.Require one shareholder(can be any nationality).

3.Assisting to obtain licenses for carry out manufacturing, retail wholesale,and franchising activities in China.

4.Recommend investment strategies and identify tax incentives.

5.Getting tax exemptions where encourage foreign investment.
 

 

 

 

Features of Foreign Invested Commercial Enterprises
1) Registered capital and contribution

In the case of a trading company in Shanghai, the minimum registered capital required is RMB500,000 (around USD75,000).
In accordance with the relevant regulation, the investor has two alternatives as to the timing for contribution of registered capital. The investor can choose to contribute the capital in one installment within 6 months after the date of incorporation; alternatively, the investor could choose to contribute the capital in two installments within a period of 2 years, where the first installment must be more than 15% of the registered capital and contributed within 3 months and the second installment being the balance contributed within 2 years after the date of incorporation.
The amount of registered capital so contributed/deposited should be audited by a firm of certified public accountants. This is so called capital contribution verification.

 

 

2) Legal Representative

A FICE is required to appoint a Legal Representative and full details of that person must be filed with the local Administration for Industry and Commerce.

The Legal Representative could be of any nationality and does not have to be a resident in China.

 

 

3) Restrictions on Trading

A FICE could only engage in those business activities (Scope of Business) stated in the Articles of Association and Business License.

 

 

4) Tax filings

A FICE is required to update its books on a regular basis, file Value Added Tax Return on a monthly basis, file individual income tax return for its employees on a monthly basis, file Corporate Income Tax Return on a quarterly basis and file annual corporate income tax return after the fiscal year end.

 

 

5) Type of company commonly used by foreign investors

A Foreign Invested Commercial Enterprise (FICE) is a limited liability company engaged in the business of retailing/wholesaling, import and export of certain kind of commodities in China.

 

 

6) Annual reporting

A FICE is required to prepare audited accounts under the company laws. Also, a copy of the audited financial statements is to be furnished with tax authority for tax report purpose. The audited financial statements are not available to the public or to the foreign authorities except those of a listed company. We can provide complete supporting services after incorporation, such as book-keeping, auditing and tax filings for both the FICE and its employees.

 

 

7) Director/Board of Directors

A FICE requires a minimum of one director and full details of these must be filed with the Administration for Industry and Commerce. The sole director is the executive director or managing director. The director can be of any nationality and be resident anywhere. Corporate director is not allowed.

 

 

8) Name approval required

Pre-approval is required for use of a name. It is possible to reserve a name of a proposed FICE for as long as six months.

 

 

9) Supervisor/Board of Supervisors

A FICE is required by the Company Law to appoint at least one Supervisor. The supervisor can be of any nationality and be resident anywhere.

 

 

10) Registered office/Business address

A company must maintain a business address in China. In accordance with relevant regulations, the office of the FICE must be located in a commercial building and that the lease term of the office must be at least for a term of 12 months.

 

 

11) Shareholders/Members

A minimum of one shareholder/member is required whose details are filed on the local Administration for Industry and Commerce. Corporate shareholders are permitted. The shareholders can be of any nationality except Chinese.

 

 

 

 

 

 

 

 

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