Kaizen - Powers and Responsbilities of Legal Representative in China, China Foreign Invested Enterprises, China FIEs, Registered Capital, Wholly Foreign Owned Enterprsie, WFOE

A Wholly Foreign Owned Enterprise (WFOE) is a Limited Liability Company established in China by foreign investor(s). A WFOE is very much like a LLC in the USA that it requires one member only.
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The registration procedures of a Wholly Foreign Owned Enterprise (WFOE) could be divided into 3 phases: aproval phase, registration phase and post-establishment phase.
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A Wholly Foreign Owned Enterprise (WFOE) could be terminated by way of liquidation or deregistration by its investor(s) or when the conditions of termination in its Articles of Association occurs.
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China Taxation

Under the current tax system in China, there are 25 types of taxes which could be divided into 8 categories. The major ones are Business Tax, Value Added Tax and Enterprise Income Tax. More

Representative Offices are also liable for Business Tax and Enterprise Income Tax. However, a RO could be exempted if its parent company is in the manufacturing business.
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Any individual who has domicile in China or who has no domicile in China but has resided in China for one year or more shall pay Individual Income Tax on his world-wide income.
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CHINA BUSINESS REGISTRATION
WHOLLY FOREIGN OWNED ENTERPRISES

COMPANY LEGAL REPRESENTATIVE IN CHINA

What is a Legal Representative in China?

A Legal Representative (LR) of a corporation is the person who is appointed by the board of directors, as stipulated in the Articles of Association, and registered with the government administration authorities to exercise the civil rights and assume obligations on behalf of the corporation.

What are the responsibilities of a Legal Representative?

1. Legal representative is responsible for behavior of the corporation.

2. Legal representative must lead the corporation to act, operate and develop within the legal constraints of the jurisdiction.

3. The behavior of the legal representative shall be deemed as the corporation's behavior where he/she purports to act on behalf of the corporation, makes a speech in the name of the corporation, signs or stamps documents related to the corporation and other actions associated with the goings-on of the corporation.

As stipulated under the Company Law in the People's Republic of China, the Chairman of the Board of a limited liability company should be the Legal Representative of that company.

Who Could be Act as Legal Representative?

The Company Law does not impose any restrictions on the nationality of the Legal Representative. Effectively, the Legal Representative could be the resident of any countries and does not have to reside in China.

Please feel free to Contact Us for further information.




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