Cuban Shareholders: How to setup a 100% Cuban Owned company in China

| Mar 31st, 2025

China’s booming economy, vast consumer base, and strategic position in global trade make it an enticing destination for Cuban shareholders looking to expand their business ventures. For Cuban entrepreneurs seeking full ownership and control, establishing a 100% Cuban-owned company in China is entirely achievable through the Wholly Foreign-Owned Enterprise (WFOE) structure. While the process involves navigating China’s regulatory framework, partnering with ATF Group in Foshan ensures a seamless incorporation experience tailored specifically to Cuban investors. This article explores why China is a prime choice, outlines the step-by-step process of setting up a WFOE, and highlights how ATF Group’s expertise in Foshan makes it the ideal partner for Cuban shareholders.

Why China Appeals to Cuban Shareholders

China offers a wealth of opportunities that align with the goals of Cuban investors:

Massive Consumer Market: With over 1.4 billion people, China provides unmatched access to customers. Cuban businesses in agriculture, manufacturing, or trade can find significant demand here.
Economic Strength: As the world’s second-largest economy, boasting a GDP exceeding USD 18 trillion, China offers a stable and growth-driven environment for investment.
Strategic Location: Positioned in Asia with robust trade infrastructure, China connects Cuban businesses to global markets, especially through hubs like the Pearl River Delta.
Cuba-China Relations: Since establishing diplomatic ties in 1960, Cuba and China have fostered a cooperative relationship. Trade agreements support Cuban exports like sugar, nickel, and medical products, easing market entry for Cuban firms.

For Cuban shareholders, a 100% Cuban-owned company via a WFOE ensures independence, profit flexibility, and protection of business interests—key factors in a competitive landscape.

What is a WFOE?

A Wholly Foreign-Owned Enterprise (WFOE) is a limited liability company entirely owned by foreign investors—in this case, Cuban shareholders—without requiring a Chinese partner. Unlike joint ventures, a WFOE grants full autonomy over operations and strategy.

Benefits of a WFOE for Cuban Shareholders

100% Ownership: Retain complete control over your company’s decisions and direction.
Intellectual Property Protection: Benefit from stronger safeguards for proprietary assets, crucial for innovative Cuban businesses.
Profit Repatriation: Transfer profits back to Cuba, subject to China’s foreign exchange rules, ensuring financial flexibility.

Step-by-Step Guide to Establishing a 100% Cuban-Owned Company in China

Setting up a WFOE involves a structured process, from planning to post-incorporation compliance. ATF Group in Foshan simplifies each step, leveraging local expertise to guide Cuban shareholders efficiently.

Step 1: Pre-Incorporation Planning

Define Your Business Scope: China requires a clear description of your company’s activities (e.g., manufacturing, trading, consulting). This must align with sectors open to foreign investment.
Determine Registered Capital: While minimum capital requirements have relaxed in many industries, you’ll need sufficient funds for initial operations. The amount depends on your business type and location.
Choose a Location: Foshan is a standout choice due to its affordability and proximity to economic hubs like Guangzhou.

ATF Group’s Role: ATF Group provides expert advice on crafting a compliant business scope and determining an optimal capital amount, minimizing costs while meeting requirements.

Step 2: Name Approval

Select a Company Name: The name must follow Chinese rules, including your business scope and ending with “Limited” (e.g., “CubaTrade Limited”).
Get Approval: Submit the name to Foshan’s Administration for Industry and Commerce (AIC) for review.

ATF Group’s Role: ATF Group verifies name availability and manages the submission process, avoiding delays from naming conflicts.

Step 3: Documentation and Application

Prepare Key Documents:
- Articles of Association (company bylaws)
- Feasibility Study Report (business plan overview)
- Lease Agreement for your Foshan office
- Passport copies of Cuban shareholders and the appointed legal representative
Authenticate Documents: Notarize these in Cuba and authenticate them at the Chinese embassy.

ATF Group’s Role: ATF Group supplies templates, ensures documents meet Chinese standards, and assists with authentication, streamlining a complex step.

Step 4: Obtain a Business License

Submit Application: File your documents with Foshan’s AIC.
Await Approval: Processing typically takes 15-30 days, depending on the completeness of your submission.

ATF Group’s Role: With strong local connections, ATF Group expedites approvals in Foshan, often outpacing larger cities like Guangzhou.

Step 5: Post-Incorporation Steps

Tax Registration: Register with the local tax bureau to comply with China’s tax system.
Open a Bank Account: Establish a corporate account for financial transactions.
Additional Licenses: For businesses involving imports/exports, obtain customs permits.

ATF Group’s Role: ATF Group handles these registrations, ensuring compliance and reducing bureaucratic stress.

Why Foshan is Ideal for Cuban Shareholders

Located in Guangdong Province’s Pearl River Delta, Foshan offers distinct advantages for Cuban-owned WFOEs:

Cost Efficiency: Office rents in Foshan are roughly 50% lower than in Guangzhou, and operational costs are similarly reduced, stretching your investment further.
Connectivity: The Guangfo Metro Line connects Foshan to Guangzhou in just 13 minutes, providing affordable access to a major economic hub.
Government Support: Foshan’s authorities offer tax incentives and streamlined processes to attract foreign investment.

ATF Group’s established presence in Foshan enhances these benefits, securing faster approvals and local incentives for Cuban shareholders.

How ATF Group Ensures Seamless Incorporation

ATF Group specializes in assisting foreign investors, including Cubans, in navigating China’s incorporation process. Based in Foshan, their services are designed to make your WFOE setup smooth and efficient:

Fast-Track Licensing: Ties with Foshan officials speed up approvals, reducing wait times.
Cost Optimization: Local expertise helps avoid unnecessary expenses, keeping your setup budget-friendly.
Full-Service Support: From initial planning to ongoing compliance (e.g., tax filings, accounting), ATF Group is your comprehensive partner.

For Cuban shareholders, ATF Group bridges gaps like language barriers and regulatory unfamiliarity, ensuring a confident entry into China’s market.

Conclusion

Setting up a 100% Cuban-owned company in China through a WFOE opens doors to one of the world’s most dynamic economies. Foshan’s affordability, connectivity, and investor-friendly environment make it an ideal base for Cuban shareholders. With ATF Group in Foshan as your partner, the incorporation process becomes seamless, cost-effective, and tailored to your needs. Whether launching a new venture or expanding an existing business, this combination of China’s vast opportunities, Foshan’s advantages, and ATF Group’s expertise positions Cuban shareholders for success on the global stage.

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