Opening a WFOE company in Shanghai

Question

I have been doing business in Shanghai for a few years now but trading and invoicing clients from my Hong Kong company however increasingly my Chinese customers in Shanghai have been requesting Chinese fapiaos and I also need to hire more local Chinese staff under a WFOE company structure.

I don’t speak or read Chinese and only want to have very limited involvement in the formalities and compliance of a WFOE company, I want to focus on actually making money in China!

Can anyone make suggestions on how I can have an essentially hands free WFOE company in China / Shanghai? My business makes good money so I dont mind paying, I just really do not want the headaches of managing things such as local compliance for taxes and audits etc..

JJJones · Answer

WFOE companies are a big headache to set up and maintain. I have one and there was always fees to be paid to someone somewhere. It is a even bigger headache and cost when you want to close down the WFOE without getting blacklisted from China.

You should look if there are any agencies or corporate services company that can provide the fapiao and whatever services you need in China without setting up a WFOE.

MarcusSH · Answer

Have you looked at using a nominee for a Chinese company instead of a WFOE? That might be a better option?

My friend set up a Chinese company under his wives name and just used that for on the ground business in China.

All of the valuable IP and assets he kept held by the Hong Kong company which he owned.

Opening a WFOE company in Shanghai

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