Wholly Foreign Owned Enterprises外商独资企业

By Gregory Sy由格雷戈里石荫

Wholly Foreign Owned Enterprises (WFOEs) or limited liability companies whose investors are purely foreign are quickly becoming the most popular method of foreign investment in China. 外商独资企业（ wfoes ）或有限责任公司，其投资者是纯粹的外资正在迅速成为最流行的方法，外国在中国的投资。 While foreign companies once thought (and were often compelled by laws) that a local partner was necessary to operate business in China, this is increasingly no longer the case in a wide range of industries. 而外国公司曾经以为（而且往往迫使法律）表示，当地的合作伙伴是必要的经营在中国的业务，这是越来越多不再是个案，在广泛的行业。

Characteristics of WFOEs: 特点wfoes ：
- Between one to fifty shareholders -一至五十股东
- Restricts the right to transfer shares -限制的权利转让股份
- Prohibits public offering of shares -禁止公开发售股份
- Equity is divided based on contribution to registered capital and not allocation of shares -股权分的基础上的贡献，注册资本，而不是分配的股份
- Liability is limited to the amount of registered capital contributed -责任是有限的，以数额的注册资本的贡献

WFOEs are governed by the Law of the PRC on Enterprises Operated Exclusively with Foreign Capital, and relevant implementing regulations. wfoes是由中华人民共和国公司法对企业的经营完全是与外国资本，以及有关实施细则。

Advantages of WFOEs: 优势wfoes ：
- Management control -管理控制
- Simpler establishment procedures -建立简单的程序
- Easier to terminate -更容易终止
- Easier to increase investment -更容易增加投资
- Protection of intellectual property -对知识产权的保护

Disadvantages of WFOEs: 弊端wfoes ：
- Lack of experience and local connections -缺乏经验和本地连接
- May not be listed on stock exchange -未必上市的证券交易所

Establishment成立

There are a number of steps required to establish a WFOE:有一些需要采取的步骤，以建立一个wfoe ：
- Filing of articles of company introduction letter, articles of association, feasibility study, and other corporate documents with the local foreign commerce bureau for approval and issuance of Foreign Investment Approval Certificate. -备案条款的公司简介信，章程，可行性研究，和其他公司的文件与当地的外国商业局的批准和颁发外商投资批准证书。

- Collateral filings with other government authorities such as: -抵押备案与其他政府当局，例如：
* Local and national tax bureaus *地方和国家国税局
* Foreign exchange bureau *外汇局
* Customs bureau *海关局
* Statistics bureau *统计局
* Public security bureau *公安局

- Within 30 days of obtaining Foreign Investment Approval Certificate, obtain temporary Business License from the Administration for Industry and Commerce -在3 0天内获得外商投资批准证书，取得临时营业执照由工商行政管理部门和商业

- Make Registered Capital Contributions and Audit by Domestic Accounting Firm -注册资本的贡献和审计是由国内会计师事务所

- Submit investment report to Administration for Industry and Commerce to obtain Permanent Business License -提交投资报告，以工商行政管理部门和商业获得永久营业执照

Important considerations重要的考虑因素

Name 名字
A company name must be in both English and Chinese, though, for practical purposes, only the Chinese name is important.公司名称必须在这两个英文和中文，虽然，实际的目的，只有中文名称是很重要的。 It cannot be identical or similar to a previously registered company name.它不能有相同或相似的一个以前登记的公司名称。 The name can be pre-reserved for a period of up to six months, which will expire if not used for establishment purposes during this time.该名称可以是预先保留为一期可达6个月，这将届满，如果不是用于建立的目的，在这段时间。

Business scope 业务范围
Unlike companies in many western nations where they are permitted to do any range of business activities unless otherwise stated in laws and regulations, foreign investors in China are required to define their company’s business scope at the outset of operations and must conduct business within this scope, subject to modification through re-application.不同的公司在许多西方国家，他们被允许做任何范围内的商业活动除非另有说明，在法律和法规，外国投资者在中国必须界定他们的公司的业务范围，在开始的行动和必须进行的业务，这范围，但须修改，通过重新申请。

Registered capital 注册资本
As per the business scope defined, a foreign investor will be required to invest a certain minimum amount of capital which must be registered or recorded with the appropriate authorities as having been made to the WFOE.作为％的业务范围界定，外国投资者将须投资一定的最低数额的资本，必须登记或记录与适当当局已作出向wfoe 。 Generally, this amount will range from RMB 30,000 to several million RMB for larger projects.一般来说，这笔款项将范围从人民币3.0万到几百万人民币，为大型项目。 Capital must simply be invested into the company and recorded as having been made with the local administration for industry and commerce.资本必须简单地投资到该公司，并记录为已取得的与当地工商行政管理部门和商业。

Shareholders 股东
Shareholders must all be foreign and there must be between one to fifty who hold an interest in the WFOE.股东，都必须外交和必须有1至50谁举行的利益，在wfoe 。

Directors 董事
The WFOE must designate a board of directors (or single director) who shall act for the initial term of office (as set out in the articles of association).该wfoe必须指定一名董事局（或单主任）谁应为法的初步任期办公室（内容已载列于组织章程） 。

Legal Representative 法人代表
Only one individual may bind the WFOE through simple signature (without use of company chop), and they must be designated as the Legal Representative in the formation documents.只有1个人可以约束wfoe通过简单的签名（不使用公司印章） ，他们必须被指定为法人代表，在形成文件。

Senior Managers 高级管理人员
At a minimum, the WFOE must designate its first general manager.在最低限度， wfoe必须指定其第一总经理。

From a purely legal perspective, the directors, senior managers, supervisor and other senior personnel do not have to be a resident in China, though it may be more practical to do so.纯粹从法律的角度来看，董事，高级管理人员，主管和其他高级人员并没有成为一个居住在中国，虽然它可能是更实际的这样做。

Supervisor(s) 督导员（ ）
At least one individual who is not a Director or Senior Manager must act as the WFOE’s supervisor.至少有一个单独的，谁不是的董事或高级经理必须采取行动，作为wfoe的上司。

Physical address 物理地址
Each company must have a unique physical address at which the company is registered.每家公司必须有一个独特的物理地址在该公司是注册。 Unlike other nations in which virtual offices are permitted, China requires that a company have a physical office space.不像其他国家在这虚拟办公室批准，中国需要一个公司有一个实际的办公室空间。

Annual filing 年度备案
Within three months of the end of each calendar year, the WFOE must undergo an annual inspection. 3个月内的每个日历年年底， wfoe必须进行年度检查。 Prior to the annual inspection, the firm must hire a domestic accounting firm to conduct an audit of the books.之前的年检，该公司必须聘请国内会计师事务所进行了审计的书籍。

This is the second part of the Grandall Legal Group article Business Vehicles, next week we will publish the third part.这是第二部分的grandall法律组文章营业车辆，下周我们将公布的第三部分。 Here you can find在这里您可以找到 part I I部分 . 。

Gregory M. Sy is a partner / foreign counsel with Grandall Legal Group. 格雷戈里米施是一个合作伙伴/外国律师与grandall法律组。 His practice includes general business advisory for SME’s in China, particularly in the areas of international corporate structuring and transactions. 他的实践，包括一般业务咨询，为中小企业的在中国，尤其是在以下领域的国际公司的结构和交易。 Representative clients include the Consulate of the United States of America in China (Shenyang), Embassy of Brazil, various publicly listed companies (NYSE, LSE, DAX, and BSE), along with numerous other SME’s operating in a wide range of industries. 代表客户包括领事馆美利坚合众国在中国（沉阳） ，驻华使馆，巴西，各种公开上市公司（纽约证券交易所，伦敦证券交易所，股市DAX ，疯牛病） ，连同其他许多中小企业的经营在广泛的产业。 Mr. Sy obtained an LL.B. SY先生获得法学士学位 from the University of Victoria, and is admitted to the New York bar. 从维多利亚大学，并承认设在纽约的酒吧。 Gregory publishes extensively on a variety of China legal issues for international and local publications, and has recently acted as chief editor for Martindale’s China Law Digest. 格雷戈里发表了广泛的各种各样的中国法律问题的国际和当地出版物，并于最近担任总编辑，为马丁代尔的中国法学会消化。 You can contact Gregory at 你可以联络格雷戈里在 gregsy@grandall.com.cn gregsy@grandall.com.cn or learn more about the firm at 或了解更多有关该公司在 www.grandall-profile.com www.grandall - profile.com . 。