WFOE Tax Registration and Social Security Account Setup Sequence
Post-license WFOE setup requires strict sequential completion of chop carving, bank account opening, tax activation, and social security registration.
Capital Verification
Meaning
Statutory accounting validation confirms the legal injection and persistent maintenance of registered registered corporate funds through an independent audit report filed with the State Administration for Market Regulation. Capital verification establishes the baseline equity position of a foreign invested enterprise during establishment or subsequent capitalization changes. Certified public accountants registered within mainland China perform the underlying asset inspection by matching incoming wire transfers against domestic bank receipts and corresponding foreign exchange registration forms issued by commercial banks under State Administration of Foreign Exchange oversight.
Capital Mandate
Foreign investors face strict statutory deadlines for remitting subscribed funds according to the timeline stipulated in the official articles of association and the enterprise investment approval certificate. Local administration bureaus monitor these schedules rigorously during annual reporting periods and periodic compliance checks. Delayed remittances trigger administrative penalties, ranging from financial fines calculated as a proportion of the overdue contribution to the eventual revocation of the business license itself.
Verification Protocol
Accounting firms appointed for the audit execute mandatory procedures specified in professional standards issued by the Chinese Institute of Certified Public Accountants. Auditors inspect original bank statements, customs declaration forms for imported physical equipment, and intangible asset valuation reports when non-cash contributions form part of the registered equity. Each asset class carries distinct documentary burdens, requiring intellectual property to possess valid registration certificates in China and physical machinery to clear customs under the corporate name of the investing entity.
Administrative Record
The completed capital verification report forms a permanent component of the corporate dossier maintained at the local administration bureau for industry and commerce. Government officials review this document before issuing updated business licenses reflecting altered equity structures or confirming the full discharge of investment obligations. Subsequent commercial activities, including profit repatriation and foreign exchange conversion for outward remittance, remain legally restricted until the official filing system acknowledges the verified capital position.