Set Up Wholly Foreign Owned Enterprise in China

WFOE is short for Wholly Foreign Owned Enterprise. It is 100% controlled by its foreign shareholders. However some specific industries are forbidden to be totally owned by foreign investors.

It is a good choice, since you can decide the business operation and set targets totally on your own.

Basically, no minimum Formation capital is needed, but we will give you tailored advice on Formation capital according to both regulations about different industries and Chinese foreign exchange control.

Legally, you can finish injecting all the capital within 5 years after the enterprise is set up.

We will help you choose the ideal business scope according to your future business plan.

We can offer you Formation address for free in designated places, and help look for your desired office.

WFOEs are among the most popular corporate models for non-PRC investors due to their versatility and structural advantages of a representative office or joint venture.

Such advantages include:

● The ability to uphold a company's global strategy free from interference by Chinese partners;
● A new, independent legal personality;
● Total management control within the limitations of the laws of the PRC;
● The ability to both receive and remit RMB to the investor company overseas;
● Shareholder liability is limited to original investment;
● Easier to terminate than an equity joint venture;
● Simpler establishment than a joint venture;
● Full control of human resources.

If the materials are in English, then they should be translated into Chinese and stamped by the translation company or institution.

1. As for the shareholder:

1.1 For a foreign enterprise:

ID Verification: Firstly, get notarization of the enterprise qualification in the notary authority of the country where the enterprise is located. Then go to Chinese Embassy to get authentication of the notarization.

1.2 For a foreign natural person:

ID Verification: If he or she is in mainland China, the original passport is needed. If the individual concerned is not in mainland China, his or her passport is required to be notarized by the notary authority of the country where the passport is issued, then go to Chinese Embassy to get authentication of the notarization.

2. Identity Certificate and Signature Copy of Legal Representative and Supervisor of the WFOE.

3. Proportion of Formation Capital and Share in the Proposed WFOE.

4. At least 6 proposed names of the WFOE.

5. Proposed business scope of the WFOE.

6. Contact information (email address, phone number, contact address) and educational background of legal representative and supervisor of the WFOE.

7. Information of accountant of the WFOE: copy of ID card, contact information (email address, phone number, contact address), etc.