China Trading Import-Export Company
It is a commonly used investment vehicle for mainland China-based businesses. The main difference from other WFOE’s is that you need an Import & Export License to establish a Trading WFOE.
So what defines a WFOE? The unique feature of a WFOE is that the entity is 100% owned and capitalized by foreign investors and operating without a local (Chinese) partner. This maintains greater control over your businesses operations, targets and profits of the company, allowing the mother company to concentrate on its own operations. WFOE is the favorable option for an overseas company that wants to permanently incorporate into mainland China.
Setting 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 from the offset. A trading WFOE is one of 4 types of WFOEs. It’s for businesses dealing with wholesale and retail with an Import & Export License.
The registration process for a China Trading Company Registration takes just 30 days with Corporation China.
Opening a China Trading Company
Setting up a Trading Company in China is simple, the limited-liability type company is called a Wholly Foreign Owned Enterprise, abbreviated WFOE or WOFE.
A Trading Company also has an import export license that enables it to Import and Export goods out of China. One of the main reasons companies open a import export company is to reclaim their VAT back. The Shanghai free-trade Zone is one of the fastest places in China to get your VAT back thus many companies choose to register in Shanghai.