Guernsey, Hong Kong, Shanghai, Cayman Islands

GP Wholly Foreign-Owned Enterprises (WFOEs)

Our Shanghai office has over 20 years' experience in servicing Wholly Foreign-Owned Enterprises (WFOEs).  A growing number of our clients are forming WFOEs to act as General Partner to the Limited Partnership funds that they manage.  

We have compiled a checklist of points to consider when forming a WFOE and appointing a service provider to assist with the process of establishment and ongoing administration.

  The General Partner WFOE Approval and Registration 

  • Review of documents prepared by client's legal counsel  and assistance with the registration process
  • MOC approval
  • Enterprise code No. application
  • Certificate of approval application
  • Business license application
  • Company chops
  • Enterprise code registration
  • Tax (state and local) registration and filings
  • SAFE registration
  • Establishing a bank account (USD capital account & RMB basic account)
  • Statistics registration
  • Financial registration
  • Customs registration
  • Initial capital verification
  • Licenses update after initial capital verification

  Bookkeeping Accounting Services 

  • Initial accounting system set up using our accounting software (software licensed in China)
    1. Set up chart of accounts in accordance with the Accounting Standards for Business Enterprises and Accounting Regulations for Business Enterprises of PRC
    2. Arrange appropriate software licensing provisions for the WOFE when using our accounting software and if applicable, identify the apportionment of the licence fee that is charged to the WOFE
  • Prepare and maintain general ledger, sub-ledgers and trial balance
  • Prepare monthly income and expense reports
  • Prepare monthly statutory financial statements (in Chinese and English): Balance Sheet, Income Statement, Cash Flow Statement
  • Prepare periodic financial reports for U.S. GAAP conversion or other generally accepted accounting principals (e.g. Group Reporting Package)
    1. Convert financial statements from PRC GAAP into parent company's chart of account and make necessary adjustments in accordance with an international recognised accounting standard such as U.S. GAAP or IFRS for group consolidation purposes
  • Prepare and organise accounting vouchers and review original invoices
  • Coordinate and assist in annual audit (act as liaison with auditors)

 Tax Compliance Services 

  • Prepare tax model application (e.g. tax exemption and benefits application)
  • Prepare and file monthly Individual Income Tax returns with local tax bureau
  • Prepare and file monthly Business Tax returns with local tax bureau
  • Prepare and file monthly Local Levy Tax returns with local tax bureau
  • Prepare and file monthly Stamp Duty Tax returns with local tax bureau
  • Prepare and file quarterly Corporate Income Tax returns with local tax bureau
  • Prepare and file annual Corporate Income Tax return with local tax bureau
  • Prepare and file annual Individual Income Tax return with local tax bureau
  • Coordinate with tax authority (act as liaison with local tax bureau)
  • Attend compulsory tax meetings and training

  Cashier Services 

  • Arrange cheque deposits and any foreign currency receipts or payments
  • Collect and review vendor payment and staff reimbursement materials, and arrange RMB cheques for vendor payments and staff reimbursements
  • Arrange online payment for certain situations such as tax payment
  • Arrange petty cash withdrawal and disbursement
  • Prepare and maintain monthly bank reconciliation statements
  • In each case ensure proper internal and regulatory authorisation requirements met

  Payroll Services 

  • Handle employee hiring and termination registration, which may include: 
    1. Registration of employment contracts
    2. Obtain employee recruitment documents, such as labour handbook, diploma and qualification certificates, ID card, CV, labour contract, employee registration form and photo
    3. Obtain employee resignation documents, such as resign notice, termination documents, stuff handover list
    4. Go through individual social welfare registration and termination
  • Calculate monthly payroll, prepare payroll slips for local and expatriate employees and arrange salary payment to employees
  • Handle post-incorporation social security registration with the government
  • Calculate and arrange monthly payment of employees' social benefits and submit relevant information to local authorities
  • File payroll statements and related declarations with the relevant authorities
  • Prepare individual income tax returns information for tax compliance
  • Assist in the yearly maintenance
    1. Salary handbook
    2. Salary statistics report
    3. Based adjustment for social benefits
    4. Based adjustment for housing funds
  • Expatriate and family members' work permit and work visa

 Corporate Services 

  • Safe-keep stamps/seals and certifications/licenses
  • Safe-keeping and maintenance of corporate documents, as well as updates and changes to company records
  • Establish proper and authorized procedures for usage of stamps/seals and certifications/licenses
  • Scan and file stamps/seals and certifications/licenses into electronic format
  • Joint annual check and any special annual return required by local government for GP WOFE
  • Diarise any other upcoming renewals and assist with the renewal process
  • Assist the Board of Directors (BOD) of GP WFOE to conduct meetings and act as Company Secretary as and when required including approving the statutory accounts, convening the AGM, and approving all investments and divestments