What is the minimum Registered Capital for WOFE establishment? What is the ratio between Registered Capital and Total investment?
The amount of registered capital must be declared during the licensing phase of the registration process. The total investment figure is represented by a ratio between foreign contributed capital and debt. The registered capital should cover all the initial investment expenses that the foreign entity will have and may be used immediately for the newly formed company’s expenses. We generally suggest considering 2 years of company operation, which may include paying rents, salaries and purchasing products etc.
According to Corporate Law of China minimum Registered Capital required for SMEs is 10,000 RMB（single investor）or 30,000 RMB (multiple investors). It should be reasonable to get the approval from authorities. You should also refer to particular regulations for Foreign Direct Investor (FDI) in selected industry. For instance, NVOCC would require bank deposit in amount of 80,000RMB.