In today’s interconnected world, the need for reliable and efficient logistics systems cannot be overstated. If you’re considering expanding your business to the global stage, setting up an International Logistics Company in China may be a beneficial move. Here’s a guide to help you navigate through the process.

Why Register an International Logistics Company in China?

China is the world’s largest trading nation, and its importance as a global logistics hub continues to grow. Registering an international logistics company here can offer unparalleled access to major markets and a vast consumer base. Further, China has advanced infrastructure, which can facilitate smooth and efficient transportation.

Additionally, the Chinese government supports foreign investments and has simplified many regulatory processes to facilitate the formation of Wholly Foreign-Owned Enterprises (WFOE).

What are the Requirements?

Before you begin the process, it’s crucial to understand the specific requirements involved in registering an international logistics company in China.

  1. Director: The client should appoint a separate individual, who can be of any nationality (except sanctioned countries). The Director can also be a shareholder.
  2. Supervisor: The client should appoint a separate individual, who cannot be the same person as the company director. The Supervisor can be of any nationality (except sanctioned countries) and can also be a shareholder.
  3. Legalized Passport Copies: If the director is outside of China, legalized copies of the director’s passport are needed. If the director is in China, a copy of the director’s passport, visa, and entry/exit stamp are required. The same applies to all foreign shareholders.
  4. Contact Details: Full contact details for all shareholders, the company director, and supervisor are necessary.
  5. Visit: The company director must visit the bank and the tax office in person.
  6. Second Person: A second person must accompany the director when visiting the bank to open a company bank account. This person can be of any nationality, except for sanctioned or blocked countries in the bank system.
  7. Foreign Shareholders: They cannot apply for a work visa if they do not hold any specific position within the company.
  8. FEES: Payment is required in advance.

How Can JR & Firm Assist You?

JR & Firm specializes in helping businesses establish a presence in China. Their services include acquiring the international transportation license, enabling your company to directly work with airlines, vessels, railways, and trucks.

The typical timeframe to register an International Logistics WFOE is approximately two months. However, JR & Firm will make every effort to expedite the process, providing you with a smooth, efficient, and hassle-free experience.

In conclusion, forming an International Logistics Company in China as a WFOE can be a strategic move for businesses seeking to tap into China’s vast potential. With the right guidance, this process can be a springboard for your global business ambitions.

1. What is a WFOE?

WFOE stands for Wholly Foreign-Owned Enterprise. It’s a type of business entity in China that’s fully owned and controlled by foreign investors.

2. What are the basic requirements for setting up a logistics WFOE in China?

You would need a director, a supervisor, legalized passport copies for the director and foreign shareholders, and full contact details for all shareholders, the director, and the supervisor. A company director should also visit the bank and tax office in person.

3. Can the director and supervisor be the same person?

No, the director and supervisor must be two separate individuals.

4. Can anyone be a director or a supervisor?

Any individual can be appointed as the director or supervisor, regardless of their nationality (except those from sanctioned countries).

5. How long does it take to register a logistics WFOE in China?

The process typically takes around two months. However, with JR & Firm’s expertise, we’ll do our best to speed up the process.

6. Do I need to be present in China to start a logistics WFOE?

Yes, the company director is required to visit the bank and the tax office in person.

7. What are the advantages of setting up a logistics WFOE in China?

With a logistics WFOE, you’ll have direct access to one of the largest consumer markets in the world. It also allows your business to operate with greater control and independence.

8. What does an international transportation license enable a company to do?

It enables the company to work directly with airlines, vessels, railways, and trucks for the transportation of goods.

9. Can JR & Firm help obtain an international transportation license?

Yes, JR & Firm can assist in obtaining an international transportation license for your logistics WFOE in China.

10. What types of goods can a logistics WFOE handle?

A logistics WFOE can handle all kinds of goods, subject to Chinese laws and regulations.

11. What is the role of the second person when visiting the bank to open a company bank account?

The second person’s information is required by the bank in order to issue the online banking device. This person must be in China with their original passport and a Chinese phone number.

12. Can a foreign shareholder apply for a work visa?

Foreign shareholders can apply for a work visa only if they hold a specific position within the company.

13. Can the second person be the company supervisor?

Yes, the second person can be the company supervisor if they are in China.

14. What should I consider while choosing a location for my logistics WFOE in China?

Consider factors such as proximity to major transport hubs, market access, local government policies, and the availability of resources.

15. Can I own multiple logistics WFOEs in China?

Yes, as a foreign investor, you can own multiple WFOEs, including logistics WFOEs in China.

16. Can I change the business scope of my logistics WFOE after it's set up?

Yes, but any changes to the business scope require approval from the relevant Chinese government authorities.

17. What are the tax obligations of a logistics WFOE in China?

WFOEs are subject to China’s corporate tax laws, and tax obligations may vary depending on the nature and scope of the business.

18. What is the process for closing down a logistics WFOE in China?

Closing a WFOE involves procedures such as de-registration, tax clearance, and dissolution, and it’s a process where professional legal help is advised.

19. What kind of support does JR & Firm provide in the WFOE registration process?

JR & Firm provides end-to-end support, from company formation, obtaining licenses, opening a corporate bank account, to post-registration services such as contract drafting and tax filing.

20. What's the first step to start the process of forming a logistics WFOE in China?

The first step is to reach out to a professional services firm like JR & Firm that understands the process and the Chinese market, who can guide you through the registration process and beyond.

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Jasur Mavlyanov, an experienced entrepreneur and legal expert, has built a notable career in international business, with a focus on China. With over 13 years of experience living and working in China, Mavlyanov has acquired valuable insights into the Chinese legal system and business environment.

As an entrepreneur, Jasur founded JR & Firm LLC, a company dedicated to providing legal services to global clients entering the Chinese market. His leadership has helped the firm become a reliable partner for businesses navigating the complexities of Chinese regulations and laws. READ MORE about Jasur.

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