Wholly Foreign Owned Enterprises (usually called W.F.O.E. or WOFE) are today the primary mean of investment in mainland China. They provide complete control over its Chinese operations to the foreign investor. As a limited company, a WFOE can generate income in China in the local currency (RMB). It also has less restrictions (compared to the representative office, for instance) in terms of human resource management or office location selection.
Wholly Foreign Owned Enterprises are used in manufacturing, trading, wholesale, foods & beverages, retail, IT and consulting (B2B).
Sinovantage provides wholly foreign owned enterprise registration in 25 cities in Mainland China, in partnership with leading local law firms and government-approved agencies. We have successfully assisted clients set up their companies in Shanghai, Suzhou, Hangzhou, Nanjing, Beijing, Tianjin Shenzhen, Guangzhou, Chengdu, Chongqing, Xiamen and multiple other Chinese cities. Furthermore, beyond the normal registration process, we can also assist you in reviewing your China business plan, selecting or preparing an office, hiring employees etc., as part of a complete package. Check our value-added services for details.
Choosing a WFOE as instrument of investment in China has the following advantages:
- Legal person status
- Complete independence in terms of corporate strategy due since no Chinese partner is involved
- Ability to conduct business, issue invoices (“fapiaos”) and generate revenues
- Facilities for converting RMB profits into USD or other foreign currencies to transfer back to parent company or foreign bank account (for individual investors)
- Full control on human resources and the hiring process
- Legal protection of company’s assets, technology etc.
- Business License is usually valid for 15~30 years, or more
- Long and costly registration process
- Registered capital, that can be high, needs to be paid up in full
- Application and approval is required in case of business scope modification or expansion.
- Copies of incorporation documents of parent company if applicable (business license, certificate of incorporation, business registration certificate and/or any applicable document)
- CPA-certified annual audit report of parent company if applicable (last year)
- Original bank reference letter attesting of the parent company’s or individual investor good financial status within the last six months (2 copies)
- Information on business scope, estimated duration of proposed WFOE, as well as total investment and registered capital
- Detailed information, contact number & address of legal representative and/or individual investor.
- Photos (8) and copies of passport and current valid visa of legal representative
- Originals (2) of lease agreement (minimum 12 months), and copy of title deed of registered office.
Additional requirements apply for manufacturing wholly foreign owned enterprises, such as detailed purpose and investment breakup, environment evaluation report, detailed business plan with list of equipments, utilities requirements etc. Contact us for details regarding the documents needed for your specific industry.
- Checking up the documents and preparing the legal forms
- Checking and registering the company name
- Obtaining the approval certificate (from the relevant district’s office for Industry and Commerce)
- Applying and obtaining the business license.
- Applying for the enterprise code license
- Registering with the local bureau of statistics
- Registering with the local tax bureau
- Obtaining the bank account and foreign exchange certificates
- Opening the foreign exchange and RMB bank accounts
- Obtaining the health certificate for the legal representative
- Obtaining the residence permit for the legal representative
- Checking the registered capital
-Obtaining the import-export license & the VAT invoices (Trading companies/FICE only)
- Local customs registration (Trading companies/FICE only)
WFOE Registration Service Pricing
The service charge for WFOE formation will depend of several factors including:
- City of registration
- Registered capital
- Type of WFOE: consulting, IT, trading, manufacturing, FICE etc.
- Value-added services required: offshore parent company set up, initial market research, accounting, human resources, office finding, visas etc.
Make sure to contact our nearest office today and we will be pleased to provide you with an all-inclusive quotation for your WFOE registration in China. We will provide an official invoice (“fapiao”) at the end of the registration which you can use to deduct the service charges from your registered capital.