Wholly Foreign Owned Enterprises外商獨資企業

By Gregory Sy由格雷戈里石蔭

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. 外商獨資企業（ wfoes ）或有限責任公司，其投資者是純粹的外資正在迅速成為最流行的方法，外國在中國的投資。 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. 而外國公司曾經以為（而且往往迫使法律）表示，當地的合作夥伴是必要的經營在中國的業務，這是越來越多不再是個案，在廣泛的行業。

Characteristics of WFOEs: 特點wfoes ：
- Between one to fifty shareholders -一至五十股東
- Restricts the right to transfer shares -限制的權利轉讓股份
- Prohibits public offering of shares -禁止公開發售股份
- Equity is divided based on contribution to registered capital and not allocation of shares -股權分的基礎上的貢獻，註冊資本，而不是分配的股份
- Liability is limited to the amount of registered capital contributed -責任是有限的，以數額的註冊資本的貢獻

WFOEs are governed by the Law of the PRC on Enterprises Operated Exclusively with Foreign Capital, and relevant implementing regulations. wfoes是由中華人民共和國公司法對企業的經營完全是與外國資本，以及有關實施細則。

Advantages of WFOEs: 優勢wfoes ：
- Management control -管理控制
- Simpler establishment procedures -建立簡單的程序
- Easier to terminate -更容易終止
- Easier to increase investment -更容易增加投資
- Protection of intellectual property -對知識產權的保護

Disadvantages of WFOEs: 弊端wfoes ：
- Lack of experience and local connections -缺乏經驗和本地連接
- May not be listed on stock exchange -未必上市的證券交易所

Establishment成立

There are a number of steps required to establish a WFOE:有一些需要採取的步驟，以建立一個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. -備案條款的公司簡介信，章程，可行性研究，和其他公司的文件與當地的外國商業局的批准和頒發外商投資批准證書。

- Collateral filings with other government authorities such as: -抵押備案與其他政府當局，例如：
* Local and national tax bureaus *地方和國家國稅局
* Foreign exchange bureau *外匯局
* Customs bureau *海關局
* Statistics bureau *統計局
* 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天內獲得外商投資批准證書，取得臨時營業執照由工商行政管理部門和商業

- Make Registered Capital Contributions and Audit by Domestic Accounting Firm -註冊資本的貢獻和審計是由國內會計師事務所

- Submit investment report to Administration for Industry and Commerce to obtain Permanent Business License -提交投資報告，以工商行政管理部門和商業獲得永久營業執照

Important considerations重要的考慮因素

Name 名字
A company name must be in both English and Chinese, though, for practical purposes, only the Chinese name is important.公司名稱必須在這兩個英文和中文，雖然，實際的目的，只有中文名稱是很重要的。 It cannot be identical or similar to a previously registered company name.它不能有相同或相似的一個以前登記的公司名稱。 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.該名稱可以是預先保留為一期可達6個月，這將屆滿，如果不是用於建立的目的，在這段時間。

Business scope 業務範圍
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.不同的公司在許多西方國家，他們被允許做任何範圍內的商業活動除非另有說明，在法律和法規，外國投資者在中國必須界定他們的公司的業務範圍，在開始的行動和必須進行的業務，這範圍，但須修改，通過重新申請。

Registered capital 註冊資本
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.作為％的業務範圍界定，外國投資者將須投資一定的最低數額的資本，必須登記或記錄與適當當局已作出向wfoe 。 Generally, this amount will range from RMB 30,000 to several million RMB for larger projects.一般來說，這筆款項將範圍從人民幣3.0萬到幾百萬人民幣，為大型項目。 Capital must simply be invested into the company and recorded as having been made with the local administration for industry and commerce.資本必須簡單地投資到該公司，並記錄為已取得的與當地工商行政管理部門和商業。

Shareholders 股東
Shareholders must all be foreign and there must be between one to fifty who hold an interest in the WFOE.股東，都必須外交和必須有1至50誰舉行的利益，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).該wfoe必須指定一名董事局（或單主任）誰應為法的初步任期辦公室（內容已載列於組織章程） 。

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個人可以約束wfoe通過簡單的簽名（不使用公司印章） ，他們必須被指定為法人代表，在形成文件。

Senior Managers 高級管理人員
At a minimum, the WFOE must designate its first general manager.在最低限度， wfoe必須指定其第一總經理。

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.純粹從法律的角度來看，董事，高級管理人員，主管和其他高級人員並沒有成為一個居住在中國，雖然它可能是更實際的這樣做。

Supervisor(s) 督導員（ ）
At least one individual who is not a Director or Senior Manager must act as the WFOE’s supervisor.至少有一個單獨的，誰不是的董事或高級經理必須採取行動，作為wfoe的上司。

Physical address 物理地址
Each company must have a unique physical address at which the company is registered.每家公司必須有一個獨特的物理地址在該公司是註冊。 Unlike other nations in which virtual offices are permitted, China requires that a company have a physical office space.不像其他國家在這虛擬辦公室批准，中國需要一個公司有一個實際的辦公室空間。

Annual filing 年度備案
Within three months of the end of each calendar year, the WFOE must undergo an annual inspection. 3個月內的每個日曆年年底， wfoe必須進行年度檢查。 Prior to the annual inspection, the firm must hire a domestic accounting firm to conduct an audit of the books.之前的年檢，該公司必須聘請國內會計師事務所進行了審計的書籍。

This is the second part of the Grandall Legal Group article Business Vehicles, next week we will publish the third part.這是第二部分的grandall法律組文章營業車輛，下週我們將公佈的第三部分。 Here you can find在這裡您可以找到 part I I部分 . 。

Gregory M. Sy is a partner / foreign counsel with Grandall Legal Group. 格雷戈里米施是一個合作夥伴/外國律師與grandall法律組。 His practice includes general business advisory for SME’s in China, particularly in the areas of international corporate structuring and transactions. 他的實踐，包括一般業務諮詢，為中小企業的在中國，尤其是在以下領域的國際公司的結構和交易。 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. 代表客戶包括領事館美利堅合眾國在中國（沉陽） ，駐華使館，巴西，各種公開上市公司（紐約證券交易所，倫敦證券交易所，股市DAX ，瘋牛病） ，連同其他許多中小企業的經營在廣泛的產業。 Mr. Sy obtained an LL.B. SY先生獲得法學士學位 from the University of Victoria, and is admitted to the New York bar. 從維多利亞大學，並承認設在紐約的酒吧。 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. 格雷戈里發表了廣泛的各種各樣的中國法律問題的國際和當地出版物，並於最近擔任總編輯，為馬丁代爾的中國法學會消化。 You can contact Gregory at 你可以聯絡格雷戈里在 gregsy@grandall.com.cn gregsy@grandall.com.cn or learn more about the firm at 或了解更多有關該公司在 www.grandall-profile.com www.grandall - profile.com . 。