China will cut import tariffs on cars and auto parts from July 1, the Ministry of Finance announced yesterday. Import tariffs will be cut to 15 percent from 25 percent for most vehicles from July 1, the ministry said in a statement. Import tariffs on auto parts would be cut to 6 percent from 8…
China Trading Import-Export Company
A China Trading Import – Export Company, abbreviated Trading WFOE, is a commonly used investment vehicle for mainland China-based businesses. It is designed for businesses dealing with wholesale and retail. Unlike other types of WFOEs, an Import and Export License is necessary to establish a Trading WFOE. A trading WFOE is one of four types of WFOEs allowed in China.
The unique feature of a WFOE is that the entity is 100% owned, capitalized, and operated by foreign investors without the help of a local partner. A WFOE allows you to maintain greater control over your business operations, and revenue targets. In addition, it allows you to conduct business in China on your own without the need of a local partner. A WFOE is the favorable choice for an overseas company that wants to permanently incorporate into mainland China.
Setting up a WFOE does not mean that you can engage in any type of business activity, as is the case in some Western countries. In China, WFOEs can only operate within the business scope initially approved by the authorities. Business operations other than those initially authorized are subject to further approval by the relevant authorities. Hence, it is vital to determine what you want to do from the onset.
Opening a China Trading Company
In China, a Trading Company requires an import – export license that enables it to import and export goods. One of the main reason to open an import – export company is to reclaim your VAT back. The Shanghai free-trade Zone is one of the fastest places in China to reclaim your VAT. This makes Shanghai one of the most popular destination for company registrations.
With Corporation China, the registration process for a China Trading Company Registration takes just 30 days.