How can an existing manufacturing wholly foreign-owned enterprise (WFOE) in China expand its business scope with distribution?

To expand the business scope of a WFOE in China, it should amend its articles of association, fill out the relevant application forms, and submit them in accordance with the legal procedures for expanding an enterprise’s business scope. The specific method of distribution (i.e., wholesale, retail or commission agency) should be specified, and a list the relevant products should be attached. Methods of distribution are differentiated between:

• Retailing
• Wholesaling
• Franchising
• Commission agency activities.

China requires that each business have a well-defined business scope that must be strictly abided by. If a company wishes to engage in a business activity not specified in its business scope, such as distribution or logistics, it should go through the formality of changing/expanding its business scope. The key departments involved are the Administration of Industry and Commerce (AIC) and the State and local tax bureaus. Required application documents include:

• Application form for registration of change to company registered info
• Business license (original and duplicate)
• Tax registration certificate (original and duplicate)
• Organization code certificate (original and duplicate)
• Company stamps
• Revised articles of association