China Manufacturing Company Registration
If you consider manufacturing products in China, you must register a China manufacturing company, also called a manufacturing WFOE. China may provide incentives and tax breaks for foreign manufacture companies. The rules and regulations are complex, so to get started, a professional guidance is recommended.
Manufacturing in China
China is the world’s largest manufacturer and its labour costs are still very low compared to western countries. For that reason it makes a good choice for manufacturing location, particularly if you’re making products with a high labour component or need to order in bulk. But as a foreign enterprise it’s all too easy to overlook vital details when you’re promised the earth by eager manufacturers and have a bargain in sight.
How to set up a factory in China
Having set up a limited company does not necessarily mean you can engage in any kind of business activity, as is the case in some Western countries. WFOEs can only operate within the business scope approved by the authorities. Other activities are subject to further approval. So it is vital to determine what you want to do right from the start. If you consider manufacturing products in China, you must establish a manufacturing WFOE. China may provide incentives and tax breaks for foreign manufacture companies. The rules and regulations are complex, so to get started, a professional guidance is recommended.
The unique feature of a WFOE is that the entity is 100% owned and capitalized by foreign investors and operating without a local partner. This maintains greater control over the business operations, targets and profits of the company, letting the mother company to concentrate their own operations, without needing to consider the option of a local partner. WFOE is a favorable choice for an overseas company that wants to permanently incorporate into mainland China. To provide the exact duration for registration of a Manufacturing WFOE depends on several factors. Send us more information about your business scope and we may provide more detailed information.