From opening your first corporate account to repatriating after-tax profits, we handle every banking and foreign exchange service your WFOE needs — coordinating with banks, SAFE, and the tax bureau on your behalf.
Every capital movement in and out of a Chinese entity requires documentation, bank coordination, and in most cases SAFE registration. We handle the full process so nothing is delayed by a missing document or a missed filing step.
We manage the full bank account opening process for your WFOE — from recommending the right account types and bank for your operational needs, through to document preparation, bank liaison, and account activation.
Your primary RMB operating account. Used for payroll, daily payments, and tax. Every WFOE holds exactly one basic account — we advise on bank selection before you commit.
Supplementary RMB accounts at additional banks. Useful for separating cash pools or receiving specific types of payments. We open and register these alongside the basic account where needed.
Required for receiving capital injections from overseas, collecting foreign currency revenue, and processing profit repatriation. We open this in parallel with your RMB accounts.
Activated basic account, foreign currency account, and any additional accounts required — with online banking set up and all account details confirmed in writing. Typical timeline: 2–4 weeks from document submission.
Before your overseas shareholder can remit capital into China, a specific sequence of registrations must be completed. We manage this entire process — so the funds arrive cleanly, on the first attempt, with all regulatory filings in order.
SAFE registration completed. Capital confirmed received and verified by the bank. Currency conversion processed. Capital verification report issued. All filings archived and available for future reference.
Once registered capital is converted to RMB and held in the operating account, each drawdown for business expenditure requires a use declaration supported by documentation. We prepare this documentation and handle the bank coordination for every withdrawal.
Funds transferred to your basic operating account, cleared for the specific expenditure. Use declaration filed and archived. Transaction recorded in your monthly financial package.
When your WFOE receives payments in foreign currency — for exported goods or cross-border services — the receipts must be declared and the funds properly converted. We manage this process for both goods trade and services trade receipts.
Foreign currency receipt declared and cleared. RMB conversion processed and funds available in your operating account. All declarations archived for SAFE audit purposes.
We manage the complete profit repatriation process — verifying that all prerequisites are met, coordinating the audit and tax clearance, preparing the bank documentation, and processing the outbound transfer to your overseas shareholder.
The standard withholding tax on dividends remitted overseas is 10%. Where China has a tax treaty with the shareholder’s jurisdiction and the shareholder meets the beneficial ownership requirements, a reduced rate applies. We advise on eligibility and handle the treaty application.
| Shareholder Jurisdiction | Standard Rate | Treaty Rate | Minimum Holding |
|---|---|---|---|
| Hong Kong SAR | 10% | 5% | ≥ 25% equity |
| Singapore | 10% | 5% | ≥ 25% equity |
| Germany | 10% | 5% | ≥ 25% equity |
| United Kingdom | 10% | 5% | ≥ 25% equity |
| Netherlands | 10% | 5% | ≥ 10% equity |
| France | 10% | 5% | ≥ 25% equity |
| Japan | 10% | 5% | ≥ 25% equity |
| Australia | 10% | 5% | ≥ 25% equity |
| United States | 10% | 10% — no reduction | No treaty benefit on dividends |
Withholding tax filed and paid. Full bank documentation submitted. Dividend transfer confirmed received by the overseas shareholder. Entire transaction recorded in your annual financial records. Typical end-to-end timeline once prerequisites are met: 2–4 weeks.
Monthly bank reconciliation is built into our standard accounting service — not an add-on. Every client receives a reconciled bank position as part of their monthly financial package.
Monthly bank reconciliation statement included in your financial package. Any discrepancies flagged and resolved before month-end close. Foreign exchange positions tracked and reported alongside your RMB accounts.
Yes — payroll is one of the permitted uses of registered capital funds. We handle the drawdown declaration and bank documentation as part of our monthly service, so the process is straightforward once accounts are set up.
For single payments of USD 50,000 or above, yes — the contract must be filed with your bank before the payment arrives. We manage this filing as soon as a contract is signed, so there is no delay when the payment comes in. For amounts below the threshold, we handle the documentation at the point of conversion.
Once all prerequisites are in place — audit complete, CIT settled, withholding tax paid, board resolution ready — the bank transfer itself typically takes 5–10 business days. We coordinate everything in parallel to minimise the total elapsed time. Companies that complete their annual audit by April can usually complete a repatriation before mid-year.
Potentially yes, but the Hong Kong entity must be the genuine beneficial owner of the dividend — not a shell holding structure. We advise on the substance requirements and prepare the treaty benefit application for the tax bureau. Where the HK structure does not meet the substance test, we discuss alternative approaches.
A loss-making WFOE cannot distribute profits, but it can make outbound payments for legitimate operational purposes — paying overseas suppliers, management fees to the parent under an arm’s-length agreement, or loan repayments with proper documentation. We advise on the distinction and handle the applicable documentation and withholding requirements for each type of outbound payment.
We handle everything from account opening to profit repatriation — coordinating with banks, SAFE, and the tax bureau so you don’t have to.