China WFOE Incorporation & Support
WFOE is an acronym for Wholly Foreign Owned Enterprise. It is a 100% foreign owned (individual or corporate) limited liability company able to generate profit, invoice clients and hire local and foreign employees in China. WFOEs are the most popular business structure for foreign businesses entering China. Setting up a WFOE takes 2 to 3 months. We’ll need to prepare all incorporation documents, open your Chinese corporate bank accounts, and assign a legal representative.
Generate profits
Send funds overseas
Hire staff
Invoice clients
Our WFOE Registration Procedure
01.
Name & Address
Getting you a registered address & preparing documents.WFOE Chinese nameVirtual address ORFree trade zone addressWFOE application
02.
Business License
Your business license and corporate chops are issued.
Business LicenseCompany Official ChopFinancial ChopLegal Representative Chop
03.
Corporate Accounts
Opening of your corporate bank account & tax accounts.Corporate bank accountSocial insurance accountHousing fund accountTax registration number
04.
Trading Certificates
Issuance of additional licenses where applicable.Import / export licenseFood & beverage licenseAlcohol licenseMedicine license
05.
Ongoing Support
Monthly tax & accounting reports for compliance.
Monthly tax & accountingInvoice issuanceFinancial ChopPayroll
06.
Additional Services
Opening of your corporate bank account & tax accounts.Annual tax returnTrademark registrationICP licenseE-commerce in China
Our Working Process
01.
Consultation & Proposal
We (can) advise you on the best solution for your business model and send you our comprehensive proposal.
02.
Signing & Payment
After reviewing the proposal, we sign the service contract and receive your payment.
03.
Preparing Documents
We send you an application form as well as the list of documents we need from your side.
04.
Take a Break
Sit back, relax and let us take care of everything from here on out. Your WFOE will be ready in roughly one month.
Changing times in China
As China’s economy and demographics change, the advantages of a WFOE has become increasingly apparent. As China shifts from a profitable base of manufacturing and export to a country with a growing middle class and domestic spending opportunities. With the ability to sell and invoice in China, WFOEs take full advantage of China’s exponentially growing consumer economy.
As a result, the types of WFOEs being registered are also changing. In the recent past, the WFOE structure was most popular for manufacturing companies. Nowadays, an increasing number of WFOEs are in the consulting and management sectors, as well as high tech and software development.
A simplified WFOE registration
The Chinese government has proactively updated and changed laws surrounding WFOE / WOFE registration and management as the market has changed. Some of these changes have made it easier for foreign companies to enter China, such as removing WFOE capital requirements. Others have simplified the registration process, with changes such as the introduction of an easier “5 in 1” business license allowing a single application for multiple licenses and permits.
Unfortunately, it’s not all good news for WFOEs! Some changes have brought increased challenges. There are, for example, new regulations requiring identification of the actual people or companies in control of the WFOE. Challenges also continue to arise from the split between central and regional government responsibility. Many application aspects are left to local discretion, and this can vary widely! Good contacts and experience dealing with relevant authorities can be very valuable here.
Our China WFOE registration guide
We share here some guidance regarding how to register a company in China. FDI China has many years’ experience working in this area and our lawyers are experts in company incorporation. We have seen it all before and understand the challenges.
The short sections below will help inform you whether a WFOE / WOFE registration in China is the right option for your business, and will highlight important considerations before you embark on the process. We also outline the full WFOE / WOFE setup process – to help you see what lies ahead! We will go into more details of key areas in our blog posts, and of course can help you answer any questions you have.
We look forward to hearing from you and working with you during your exciting China journey!