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China Foreign-Invested Commercial Enterprise Registration

CHINA Foreign-Invested Commercial Enterprise

How to expand your business to China by setting up Foreign-Invested Commercial Enterprise

No Real Office Needed
No Registered Capital Required
No Need to Visit China
Set-up in 30 working days
EXCLUSIVE TO CORPORATION CHINA

Welcome to China

Joyce Li
MISS UNIVERSE

Foreign-Invested Commercial Enterprise

The FICE is a Limited liability company set up for agency’s ,Retail Business and Franchise business.

Foreign-Invested Commercial Enterprise is a foreign company, which does not concentrate on production in China but on import and export. A FICE is a Wholly Owned by Foreign Enterprise (WOFE) with import and export rights. Like a WOFE, a FICE could be completely financed by a foreign investment and a Chinese partner is not required. Exceptions are products like books, sugar, salt, oil etc. For these products a Joint Venture with a Chinese Partner is required. In gen,eral a FICE has no rights for tax advantages and is being taxed like a Chinese invested company. This means tax planning at the pre-incorporation stage must be part of the investment structuring process.

The incorporation procedure of a FICE differs from the incorporation procedure of a WOFE because a FICE needs a pre-approval of Chinese import and export authorities.

 Foreign invested Commercial Enterprise (FICE) – introduction

A foreign invested commercial enterprise means a foreign invested enterprise, which engages in following areas:

Agency with commission: selling other owned goods and providing related services by sales agency of goods, broker, or auctioneer or other wholesaler onthe the basis of contractual relationship.

  • Wholesale: selling goods and providing related services to the ailer, industrial user, commercial user, organizational user and other wholesaler.
  • Retail: selling goods and providing related services to indan ividual or collective consumer in fixed locations or by means of television, telephone, internet and automat.
  • Franchise: licensing of trademark, t, ade name and business mode by entering into a contract with others for the purpose of returns and license fee.

Advantages & Disadvantages of FICE Company Formation Type

Advantages of a China FICE

Unlike a China WOFE (Wholly-Owned Foreign Enterprise), a China FICE can open and operate branch offices anywhere within China. Furthermore, a China FICE can be 100% foreign owned.

A China FICE can carry out a wide range of activities, including wholesale, retail and franchising trade activities in China. This is thanks to the updated policy of trading and distribution rights made in 2004, as these sectors were previously closed or restricted for foreign companies.

Foreign investors planning on setting up a China FICE should note that there are no annual turnover or minimum asset requirements. Previous regulations required an annual average turnover of at least US$2.5 billion in the three years before the application and a minimum asset value of US$300 million in the year prior to the application.

Investors planning to further their business scope in China can upgrade their China representative office to a China FICE.

Disadvantages of a China FICE

Setting up a China FICE can take up to 3 months, if all supporting information and documents are available.

A China FICE must inject a minimum 20% of the paid up capital into a corporate bank account within the first month of incorporation. The 80% balance is injected into the account in installments within two years of incorporation. The minimum registered capital required for; trading rights is RMB1 million (US$145,700),wholesale distribution rights is RMB500,000 (US$72,800) and for retail distribution rights it is RMB300,000 (US$43,700).

China company law regulations allow foreign companies to undertake manufacturing activities in China. A manufacturing FICE is similar to a WOFE but with an import/export license. Furthermore, wholesale China FICE must obtain approval from both the Ministry of Commerce in Beijing, as well as the authorities in the province in which it intends to set up. A retail China FICE, on the other hand, must obtain approval only from provincial authorities to open a retail store in China.

What can a FICE Company be used for?

Uses of a China FICE

A China FICE is the optimum way for a foreign company to distribute its products in China. There are two main types of China FICE as follows:

A China Foreign-Invested Commercial Enterprise is a foreign company, which does not concentrate on production in China but on import and export. A FICE is a Wholly Owned by Foreign Enterprise (WOFE) with import and export rights. Like a WOFE, a FICE could be completely financed by a foreign investment and a Chinese partner is not required

  • Wholesale China FICE – a wholesale China FICE may conduct commodity wholesale; commission-based agency activities; import and export of commodities; warehousing services; marketing services; product installation and after-sales services; indirectly engage in retail activities via franchisees.
  • Retail China FICE – a retail China FICE may conduct commodity retailing activities; import merchandise; source and export Chinese products; conduct TV and telemarketing, mail order sales, Internet sales and vending machine sales. If applying to open a shop at the same time as applying to establish the retail China FICE, a proposed shop must conform to the urban development plan and the commercial development plan of the city where it is situated. If applying to open a shop after the establishment of the retail China FICE, then in addition to meeting the above requirement, the enterprise must also have undergone annual inspection on time and passed, and have received all of its registered capital from its investors.

Consulting Company

Consulting Company

The Chinese market is vast and is still in expansion. For that reason many companies rely on consulting firms to help them efficiently operate in the Chinese market.

Wholly Foreign Owned Enterprise Registration

Trading Import & Export

China is the world’s Factory and Import and Export is one the largest markets. Import goods to China to sell directly in the Chinese Market or Export products Worldwide. Corporation China will establish a trading company with a Import Export License in 30 working days.

Food & Beverage

The Food and Beverage (F&B) industry is growing rapidly in China. During the past decade the industry has grown at a rate of 30%. As a result of the increasing demand for new products and services, foreign entrepreneurs fell encouraged to enter the Chinese market.

Wholly Foreign Owned Enterprise Registration

Manufacturing Factory

A China Manufacturing Company can be used for expanding your sourcing platform and keeping direct control of logistics for selling products overseas.

100% OWNED
30 WORKING DAYS
NO REGISTERED CAPITAL

China Foreign-Invested Commercial Enterprise

The process to set up

The incorporation procedure of a FICE differs from the incorporation procedure of a WOFE because a FICE needs a pre-approval of Chinese import and export authorities.

The registration of a FICE Company takes about 30 working days to complete. Its use can vary among many different operations in China. For most cases, the ideal way to register your company is as a Limited-Liability type comForeign-investing invested Commercial Enterprise  Also abbreviated as FICE, WOFE or foreign-invested enterprise (FIE). A WOFE is a commonly used investment vehicle for mainland China-based businesses.

Ownership

Foreign invested Commercial Enterprise (FICE) may be capitalized by foreign investors and operated without the need for Chinese partners or employees. It will provide you with greater control over your business’s operations, revenue and profit targets. A FICE is a favorable option for both individuals or overseas company that wants to enter the Chinese market.

Location

A foreign-invested commercial enterprise in retail can engage in following businesses upon appropriate approval:
Retail/Import of self-operation goods
Purchase and export of domestic products/other related services.
A FICE in wholesale may engage in following businesses upon approval: Wholesale/Agency with the commission
Import and Export or other related services.

  • With offices in 44 locations across China, our closed office is never far away.

Bank Account

Due to existing restrictions on international money transfers in China, your mainland-based clients will only be able to pay you within China. Therefore, a bank account in which local companies can transfer you Chinese RMBs is necessary. 

  • Corporation China can Guaranteed a Bank Account for all our clients.

Are You Ready

To Start Your Business In China

Get a FREE Consultation with Corporation China lead Company formation experts

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AVA ZHOU

Account Manager

Ava's expertise is in Brands entering China and strategy. She has a legal and Marketing background  

She speaks English, Chinese and "Australian"

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