As of October 1, 2016, a new item will be added to China’s “WFOE Law” which will simplify formalities for establishing a foreign owned company in China. Other major changes such as dissolution, merger and extension of the operating period will also be made easier. The simplifier procedures mainly focus on the examination and approval procedures and requirements during review by the local Ministry of Commerce.
Previously, all these procedure required a lengthy examination and approval phase, which requires loads of application documentation and required up to 15 day sof official review time prior to approval. Going forward approval of most WFOEs will simply require a much quicker records filing process.
Based on what we know now the updated filing procedures will be primarily online submissions to the Ministry of Commerce. An acknowledgment of the submission should be received within 3 days.
Generally, after the National Holiday (Oct 1-7 2016), the procedures for WOFE establishment or change should be about 7 business days faster application procedure and documentation will be a whole lot simpler.
This seems to be part of a broader trend to make dong business in China easier for foreign companies, though it’s doubtful that companies not already seeking to enter China will see this as their cue.