WFOE Registration for USA SunJie IT company in Shanghai

We are USA SunJie IT company in Shanghai. Further research suggests I may not be eligible for a WFOE anyway as I intend to ’sell to the Chinese market’, well, more accurately provide a service to expats (and some Chinese) within China but I guess that’s still the same. According to that same site, my local partner could act just as I had in mind: “The local partner […] may be a silent partner who was acquired by the foreign firm simply to gain domestic market access.”

A different site suggests that information is outdated and therefore “With China’s entry into the WTO, these conditions were gradually abolished and the WFOE is increasingly being used for service providers such as a variety of consulting and management services, software development and trading as well. The advantages of establishing a WFOE include: Capable of converting RMB profits to US dollars for remittance to their parent company outside China.” By comparison to the Chinese who can start a business with CNY1, a WFOE requires registered capital of USD120,500.

Guess its time to consult a lawyer. In the meantime, any problem you can feel free to contact with me!

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